Retail Hardware Store Business Plan
Today, over 40% of the area’s homes are owned by women. Additionally, 60% of the area’s rentals are owned by women. It’s often a woman who heads to the hardware store for repair parts and advice. Many hardware stores today, dominated by mega-store chains, are cold, uninviting, and involve excessive driving time.
Solution
Clara’s Hardware will offer quality products in a customer-friendly shopping environment. Our customers will get assistance quickly and leave the store prepared to get the job done right the first time. Clara’s Hardware will also anticipate seasonal needs and provide competitive prices. Most importantly, Clara’s Hardware will eliminate the need for a 15-minute drive to a mega-hardware store that is both far and expensive.
Market
The demographics of home ownership have radically changed in the South Gate section of Gilmore. Women own over 40% of the area’s homes and 60% of its rentals. It’s predominantly women who now head to the hardware store for repairs and advice. Today’s hardware store, dominated by mega-store chains, is cold, uninviting, and involves excessive driving time. Clara’s Hardware is uniquely positioned to take advantage of this new reality. Conveniently located to serve the South Gate area, Clara’s Hardware offers parts, material, and advice for home repairs and lawn care. The focus is on helping customers identify their needs as soon as they enter the store.
Competition
Clara’s hardware will be competing against chain stores like True Value Hardware, which are specifically designed to appeal to female customers. Additionally, Mom and pop owned stores like McGukin Hardware have chosen to meet all hardware needs in one place. While there are other stores in the area, none have the same view as Clara.
Why Us?
Clara believes that a local hardware store can offer a reasonable selection in the most important product areas, be competitive in pricing, and provide a shopping environment that ensures repeat business.
Expectations
Forecast
The store will efficiently lay out the store to increase sales and give customers the utmost attention. The projected growth rate for Clara’s Hardware is steady, with profitability expected by month six.
Financial Highlights by Year
Financing Needed
We will receive $80,000 from our founder, Clara Johnson.
Opportunity
Problem & Solution
Problem Worth Solving
Today, over 40% of the area’s homes are owned by women. Additionally, 60% of the area’s rentals are owned by women. It’s often a woman who heads to the hardware store for repair parts and advice. Many hardware stores today, dominated by mega-store chains, are cold, uninviting, and involve excessive driving time.
Our Solution
The mission of Clara’s Hardware is to offer quality hardware products in a customer-friendly shopping environment. Our customers will get assistance quickly and leave the store prepared to get the job done right the first time. Clara’s Hardware will also anticipate seasonal needs and provide competitive prices. Most importantly, Clara’s Hardware will eliminate the need for a 15-minute drive to a mega-hardware store that is both far and expensive.
Target Market
Market Size & Segments
Clara’s Hardware will focus on three significant customer groups:
- Women homeowners: Many women homeowners perform their own repairs and home improvement projects. Clara knows this firsthand, as she has helped many women master the skills needed for successful work. Clara’s Hardware will be uniquely designed to attract and retain this important customer group.
- Customers needing assistance in planning a project/repair: This customer group can have frustrating experiences in hardware mega-stores. Clara’s Hardware will be set up to provide resources and assistance as soon as customers walk into the store.
- Local repair and home improvement professionals: The South Gate area supports a good number of professionals in this field. Clara’s Hardware can win an increasing share of this customer group through aggressive marketing. Time is money, and if Clara’s Hardware can save them a trip outside the area, they will buy there.
Competition
Current Alternatives
In the past ten years, most local hardware stores have closed due to the success of large hardware mega-stores drawing away local customers. The attraction of the larger stores has always been price and inventory. Rather than drive five minutes and hope the local store will have items at a low price, customers would rather drive 20 minutes to ensure they can find what they need. However, these mega-stores are sterile and not customer-friendly. Customers can wander aimlessly, looking for small items, and often choose the most popular brand without considering other options. While these stores offer price and selection, they lose in creating a confusing, frustrating maze for customers.
Clara believes that a local hardware store can provide a reasonable selection in the most important product areas, be competitive in pricing, and offer a shopping environment that ensures repeat business.
Our Advantages
Clara’s Hardware’s competitive edge is:
- Location: Clara’s Hardware is located in South Gate Plaza. The foot traffic in the plaza is strong. The closest hardware store to South Gate is a twenty-minute drive.
- Seasonal Products: Each season has unique demands on homeowners. Clara’s Hardware will focus on this pattern and bring in local customers by marketing these items at competitive prices.
- Repair/Project Resource Area: The first section customers find when they enter the store is a repair/project resource area. There will be a resource person to answer their questions and direct them to the section of the store where they can find needed products.
- In-Store Expertise: Store employees will be knowledgeable in home repairs/projects. The repair/project resource area will also be used to conduct short trainings and demonstrations.
Keys to Success
Keys to Success
Keys to Success
- Location: Clara’s Hardware is located in South Gate Plaza. The foot traffic in the plaza is strong. The plaza’s primary tenants are the area’s successful supermarket, drug store, and appliance store. South Gate Plaza has easy access points on both of the area’s major cross streets and is the biggest shopping center in South Gate’s residential area. The closest hardware store to South Gate is a twenty-minute drive.
- Seasonal Products: Each season has unique demands on homeowners. Clara’s Hardware will focus on this pattern and bring in local customers by marketing these items at competitive prices.
- Repair/Project Resource Area: The first section customers find when they enter is a repair/project resource area. There will be a resource person to answer questions and direct them to the section of the store where they can find needed products.
- In-Store Expertise: Store employees will be knowledgeable in home repairs/projects. The repair/project resource area will also be used to conduct short trainings and demonstrations.
Execution
Marketing & Sales
Marketing Plan
We will use a website, Facebook posts and videos, Twitter, signage, and well-placed local radio and newspaper ads to attract customers to the store.
Sales Plan
The sales strategy of Clara’s Hardware is simple. First, create a shopping environment that inspires confidence in customers that they will find what they need. Second, make the store easy to navigate for quick and efficient shopping. Third, understand customers’ seasonal hardware needs and offer competitive prices.
Operations
Technology
Clara’s Hardware offers parts, material, and advice for home repairs and lawn care. The primary focus is on satisfying the seasonal needs of customers in the area.
- Fall/Winter: Weatherization projects.
- Spring: Garden/lawn projects and home improvement projects.
- Summer: Outdoor building projects.
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