The spirit of Do it Best
These stores have what it takes. Three stories from the front lines of retailing.
When Do it Best Corp. CEO Bob Taylor gave his state-of-the-co-op report back in October, a handful of members received honorable mention. Why? They did the things that leading independent retailers do— building, rebuilding and creating new experiences for the customer. Here’s what the dealers had to say.
Rogers Hardware
Investing and innovation leads to growth
When Becky and Paul Rogers took over Rogers Hardware Do it Center in 2000, they started making major changes to expand the Sparta, Michigan, hardware business.
“We would pick a different department each year,” Becky said. “We put up new gondolas going from 5 ft. to 7 ft. to make room for more product. We would either buy new displays or reset with a new planogram. This made a huge difference.”
Then came the big difference-maker: an expansion and renovation with an assist from the Do it Best Signature Store Design program when the Rogers acquired a long-sought-after adjacent building.
The store had been operating out of the same small downtown location that had opened in 1967, just across the street from the original store. Staying open during the demolition of two buildings (the town took care of one, the Rogers the other), the creation of a bold, new entrance and the addition of 4,000 sq. ft. wasn’t easy. But it was worth it, she said.
“We made three downtown storefronts look like one huge building,” Becky said. “The customer reaction has been impressive. Some of the components allowed us to celebrate our history and our town’s history, while bringing a very updated look to Main Street.”
They also beefed up their inventory, investing $100,000 in over 1,000 new SKUs. A new parking lot was also created.
“Just eight months after our grand reopening, we have seen double-digit increases and have experienced record-setting days that our store has never seen before,” she said. “We are absolutely thrilled with the response we have received.”
Insights from the CEO: “They knew that expansion would allow them to capitalize on opportunities they were missing, and set the store up for success well into the future.” — Bob Taylor
Escalante Do it Best Home Center
With solid financial footing, small store boosts its performance
Success at Escalante Do it Best Home Center has been driven by the financial stability of the family-run business.
“Over the years, we were able to get loans when we needed them and grow the business,” said Greg Pace.
From a base in rural Loa, Utah (population 750), the Pace family converted to Do it Best in 2001, and rebuilt their store from the ground up in 2002 to better serve farmers, ranchers and contractors.
During the course of delivering materials in Escalante, Utah, about 85 miles away, the family saw an opportunity to expand when Escalante’s tiny hardware store closed its doors.
The Paces met with Do it Best’s Retail Performance team in May 2013. Less than four months later, they opened the doors of their new Escalante Do it Best Home Center with expanded categories, like farm and ranch, added to their hardware mix. As the only farm and ranch dealer for 140 miles, Pace said the family knew it would be a huge opportunity.
And the response has been strong. In their first year in Escalante, growth has beaten projections by 30%. Business has already encouraged further expansion with a newly constructed lumber shed to meet demand.
“Every time we looked into something, we did a feasibility study. We did our best guesses on profitability and put our own money down as well,” he said. “There is a risk/reward to this, but these were moves worth taking.”
Because of its solid financial footing, the business has been able to expand into other areas and seize new opportunities. For example, in 2013 (its best growth year), it opened a rental center. A year later, the rental center was generating $250,000 for the company. There have been other product expansions as well, including small engines used for lawn mowers, trimmers and chain saws.
“In business, I have found that you are either going up or you are going down as a business; very rarely are you flat,” Pace said. “Fortunately, we’ve been growing at a nice steady pace for years now.”
Insights from the CEO: “With limited retail space of only 6,000 sq. ft., Escalante heavily promotes the It’s in Our Warehouse message so that customers know they can get almost anything they need from their local Do it Best store.” — Bob Taylor
Building Depot’s Second Act
Rising from the ashes, a bigger, better store emerges
On what should have been a day of celebration — the 40th birthday of Roderick Lucia — instead turned into a calamity as his 150,000-sq.-ft. Building Depot Do it Best, located on the British island of Curaçao in the Caribbean, was destroyed by fire.
The date was May 16, 2013.
The store’s merchandising team arrived at the Do it Best May Market the same day, intending to stock up on merchandise. But with the news of the fire, the Building Depot team snapped into full recovery mode.
They met in Indianapolis with store designers, racking manufacturers and new point-of-sale vendors. The group was determined not only to rebuild, but to improve the business from top to bottom.
In Curaçao, Lucia and his partner, Peter Luiten, set up an outlet store to keep product flowing to their customers and met with contractors to draw up plans for a new store.
As a member of Do it Best’s International division, Lucia received assistance in restocking products and creating a merchandising plan. Do it Best also supported the recovery effort by financing a new-and-improved paint department.
On Nov. 14, 2014, the 220,000-sq. ft. store reopened. “We are back and better than ever,” Lucia said.
In some ways, the fire was a blessing in disguise, for it motivated him to build something his customers could be proud of. The new store featured expanded assortments of hardware, home improvement products and building materials, along with a modern home decor showroom, a restaurant and a children’s play area. The wider aisles allow customers to easily navigate the store. At certain points, service areas are set up to provide customers with product information. Lucia established a members’ section, where customers can apply for membership and receive discounts on special offers.
From a business standpoint, Lucia and Luiten have already surpassed where they were before the fire. Before the fire, they had grown the business rapidly by acquiring a neighboring household goods business, increasing their staff by 50% and becoming a full-line home center.
What was then a devastating fire certainly did not extinguish Lucia’s dream of building an even more successful business.
Insights from the CEO: “We salute Roderick, Peter, Ivo and the entire Building Depot team for their incredible resiliency and determination.” — Bob Taylor