Independent HW dealer seeks tax incentive
An Ace dealer in northeastern Oklahoma is seeking $100.000 in tax incentives to open a new store in town, according to an article in the Bartlesville Examiner Enterprise.
The Bartlesville, Okla., Development Corporation board of directors is evaluating a request from prospective retailer Jeff Potter to open an Ace Hardware store with 13,500 sq. ft. to 14,400 sq. ft. of retail space and an additional 6,000-sq.-ft. to 8,000-sq.-ft. garden center.
In a letter to the city, Potter said his company estimates a new Bartlesville store would provide 12 to 14 full-time positions with an estimated payroll of $65,000 per year and a stabilized sale revenue of $2.75 million.
Potter is asking for 50% of the estimated $20,025 that would be generated annually by a 3% sales tax. Over a 10-year period, that amount would total approximately $100,000 “to be offered to us as an incentive to locate to Bartlesville," the letter said.
Nuts and Bolts plans to open in Odessa
Overland Park, Kan.-based Nuts and Bolts Hardware announced the site of its next location: Odessa, Mo., on U.S. Highway 40.
The new store, expected to open in April, will be the chain’s sixth location.
“Nuts and Bolts is excited to have the opportunity to serve the city of Odessa and the surrounding communities with high-quality products and services,” said Brian Richards, president of Nuts and Bolts, in a prepared statement.
The store will follow the Destination True Value design and feature 18,000 sq. ft., plus an outdoor lawn and garden center.
House-Hasson sees big increase in store sets
Knoxville, Tenn.-based distributor House-Hasson Hardware says it is seeing almost twice the level of store sets — new or expanded stores — in 2012, compared with the 2011 rate.
“We’ve seen 2012 emerge as one of our best years in terms of helping people become hardware store owners and dealers,” said Don Hasson, president of House-Hasson.
In 2011, House-Hasson performed 15 of what are called “store sets.” In 2012, that number will grow to more than 30. The company expects 2013 to be even more active, according to Dave Helfenberger, House-Hasson’s VP marketing. The square footage of new or larger stores is increasing substantially as well, according to the company.
Surprisingly, one reason is the weak economy.
“Some of the problems in the economy make it easier to open or expand a hardware or lumber business,” Helfenberger said. “Many commercial buildings have been sitting empty for a long time. It’s a buyer’s market. Properties are selling or renting at reasonable or historically low prices.
“Store owners are negotiating very good rates per square foot, from $10 to $15 down to $3 to $5. What I recommend is that they ask for six months free and six months half-price. It’s remarkable how often they get it. Most store sets have traditionally been between 3,000 sq. ft. and 5,000 sq. ft.; this year they’re more than double that because of the low prices. We’re doing two that are more than 25,000 sq. ft., and one is 137,000 sq. ft.”
House-Hasson is a 105-year-old, family owned company that serves some 2,000 dealers in 17 states and the Caribbean. The distributor’s sales are about $200 million annually.