As part of the sale, Do it Best Corp. will acquire the majority of True Value’s assets. True Value is facing a ‘significant cash crunch as the housing market stalled and consumers have become far more picky about discretionary purchases like hardware’ according to bankruptcy filings. The transaction is expected to close by the end of 2024.
The fallout from True Value’s decision is already being felt, with nearly half of Illinois’ job losses in October a direct result of its bankruptcy filing. Over 870 True Value workers lost their jobs in the Chicago area in October.
Small town ‘brick and mortar’ retail stores face stiff competition in the modern age, from online megastores like Amazon, online merchants like eBay, established retail giants (Wal-Mart, Lowe’s, Home Depot), and inflation and the economic fallout from the 2020 pandemic all contributing. The ‘big box’ online and corporate retailers offer most of the same products as small-town hardware stores, and in many cases for lower prices.
Competition is fierce in today’s marketplace, and there are strategies for small businesses to consider for survival. Retailers face many challenges, and there are ways to attract the modern consumer. In addition, an obvious key is getting actual customers through the doors of small businesses to see what they have to offer first-hand.
The advantages of shopping at a local hardware store can be simple, such as receiving personal service and expert advice. But there are other important reasons to shop local, including supporting the local economy, saving time and money, avoiding large crowds, a selection of higher quality products, and feeling a sense of community spirit.
And there are many success stories out there, including from businesses based in the Prairie State. R. P. Lumber has strong ties to Illinois, including its beginnings in the Metro East. R. P. Lumber was founded in 1977 by Robert and Donna Plummer in Staunton, and the company’s headquarters are close by in Edwardsville. R.P. has expanded to more than 80 locations, mostly in Illinois, along with stores in Missouri, Iowa, Wisconsin, Wyoming, and South Dakota. R.P. Lumber’s signature marketing line is ‘Best Service. Best Value.,’ and that represents the company’s core values, along with Integrity, Community, and Safety.
Oak Brook-based Ace Hardware has over 6,000 stores worldwide. Ace Hardware has been around for 100 years, and there are no signs of the company’s growth slowing down. Ace expected to open 200 new stores in 2024, and regular customers cite ‘customer service’ as a key reason for Ace’s success. Ace Hardware was founded in 1924 in Chicago and only four percent of its stores are company owned. Most of Ace’s owners are individual store operators, further ingratiating them with a small-town neighborhood feel.
Small-town hardware stores tend to cater to smaller, fix-it type projects, whereas the ‘big box’ stores attract those interested in large remodeling jobs. Companies such as Ace and R.P. Lumber are generally located in smaller communities, while the ‘big box’ retailers are more regional-based and in larger, more heavily populated areas.
Home building trends are constantly changing, and they will have an effect on retail hardware going forward. Whatever your buying preferences are, consider shopping at your neighborhood hardware store to see what they have to offer. You might just be pleasantly surprised at what you find.