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Hardware Survivors
by Tom Meade
Tuesday February 27, 2007
In 1963, there were 175 independent
hardware stores listed in the Providence Yellow Pages.
"Now there are 15," says Harry Adler, of Adler's hardware.
Three of them are surviving and even thriving at a time when such giants such
as The Home Depot and Lowe's crush competition, and when consumers can buy nuts
and bolts in blister packs at big pharmacies, supermarkets and, of course, Wal-Mart.
Adler's was founded in Providence in 1919, Tessier's in Pawtucket in 1920,
and Mercier's in Warren in 1923.
The stores are still owned and operated by descendents of the founders in
the stores' original buildings. Each has comfortably worn wooden floors and narrow
aisles between shelves packed with the things that make the world work. But each
store has set a course different from the others.
"You have to find your own niche," says Bud Tessier, who runs Tessier's General
Store. One thing they all have in common, he adds, is that they're not burdened
with rent or mortgage payments because their stores have been in their families
for more than 80 years. His son, Ed Tessier, mentions something else they may share:
agility.
Harry Adler and his cousin Marc Adler were 10 years old when they started
part-time work for their fathers in the store their grandfather had founded. For
Harry, that was 42 years ago. When he graduated from Roger Williams College in 1977,
he started full-time work at the store. Marc was a certified public accountant until
1987 when he joined his cousin at Adler's, selling hardware and Army-Navy surplus
gear.
"The arrival of The Home Depot forced us to look really hard at our business
and to think about what they are good at and where their weaknesses lie," Harry
says. "We re-jigged our store to fit what they weren't good at."
At the time, a trade magazine reported that women buying decorating products
were dissatisfied with The Home Depot shopping experience.
"I gave the article to Marc and we talked about how we could reinvent ourselves
to be a viable business," Harry says. "At that point, we were a hardware store on
one side and an Army-Navy clothing store on the other side."
Their first move was to create a full-service paint department. "Most hardware
stores sell paint, but, traditionally, they don't sell as much as paint stores,"
Harry said. "The reason for that is that they don't have a dedicated service area
for paint. Painting contractors want a knowledgeable staff waiting in that department
to service them."
The Adlers built a paint department, "about the size of two telephone booths,"
and Harry Adler became its staff. "It really took off," he remembers, "but we had
made one strategic error: I was the only person staffing it. I hired a woman, and
since then, I've always hired women to work in the paint department because other
women who are shopping for color like having someone with whom they can talk about
color."
When a local competitor went out of business, the Adlers hired the other store's
decorating manager. She broadened the Adlers' selection of window treatments and
wall coverings. By 1995, paint sales in one month exceeded sales of Army-Navy clothing
for the entire previous year. In 1996, the Adlers dropped apparel and expanded the
decorating department to include displays of decorative hardware. With four other
independent retailers from around the country, they formed a cooperative and hired
a chemist to create their own line of paint. Today, more than 50 stores in the U.S.
and Canada sell the C2 brand. Today, Adler's decorators make house calls throughout
the state and as far away as western Massachusetts, offering advice on colors, wall
coverings and window treatments.
In 3,800 square feet of retail space, Adler's still carries a full selection
of traditional hardware and tools among its inventory of 15,000 products. At a service
bar in the paint department, contractors sip coffee and joke with employees as the
cans of paint are shaken. "I think the thing people feel here," says Harry Adler,
"is that it's got a good vibe, and that's the one thing we've got over the big-box
stores."
One of the first things a customer sees upon entering Mercier's Hardware is
the display of peanuts. "That's right," says Gary Wagenbach, "we sell nuts and bolts.
We've got Bristol County pretty well hooked on the nuts." Wagenbach owns the store
with his wife, Paula, whose grandfather started the business as a grocery store
that also carried some hardware. The Wagenbachs' son, Joe, has been working at the
store since 1978. His parents took over the business in 1984, and that's when Paula
started working there. "My father told me that women don't work in hardware stores,"
she remembers.
Mercier's is near the Warren waterfront. Its wooden floors are creaky, and
the Wagenbachs and their two part-time employees are generous with smiles and advice.
The store has about 2,700 square feet of display space, says Paula. Neither she
nor her husband say they know how many items they stock in their inventory, and
their son Joe says, "I don't want to know."
Because the store is so close to the water and the heart of the state's marine
industry, its selection of marine goods is extensive, from the smallest stainless-steel
fasteners to foul-weather gear. If a customer wants something that the store doesn't
stock, Mercier's marine-supply distributor can deliver it the next day, says Joe.
Although Mercier's customers include some boat builders and town agencies, the bulk
of its business comes from homeowners, 50 percent of them from Barrington, says
Gary.
"It's the older people who are keeping me in business," he says. "We live
in a throw-away society. The younger people throw away things that can be repaired."
Mercier's repairs windows and screens, cuts and threads pipe and repairs lamps.
"We do a lot of jury-rigging for people," says Gary.
The peanuts? They are from Virginia, Gary's home state. "One day, I went down for
a class reunion," he recalls, "and I placed a big order. When UPS delivered them,
my son said 'What have you done? Mom is going to shoot you. What are you going to
do if we don't sell them?' Well, we'll have to eat 'em, I said. Within two weeks,
we had to order more."
Tessier's General Store carries an inventory of more than 40,000 products, about
as much as a big-box retailer in a fraction of the display space, 2,100 square feet.
The aisles are so narrow that a broad-shouldered customer walks sideways around
one display, but the shelves are filled with old-fashioned goods as well as high-tech
products.
Bud Tessier, the founder's grandson, runs the business with his sons, Ed and Eric.
They have two other full-time employees and a part-timer. The Tessiers divide the
year into five sales seasons and rotate the inventory to match the season. When
Bud joined the business 37 years ago, the average profit margin throughout the hardware
industry was 50 percent. "Today, it's 5 percent on some things and as much as 40
percent on others," he says.
Tessier's buying patterns have also changed, the result of customer demand. Bud
points to a display of tape measures near the register. "When I was young, there
would have been one 25-footer," he says. "Now there are 10."
Storewide, Tessier's inventory turns over eight times a year. Items that turn more
frequently are stocked more heavily. Business-to-business transactions account for
more than half the store's sales: 40 percent to contractors and 25 percent to the
City of Pawtucket, manufacturers and other retailers. About 30 percent of sales
are to homeowners, many of who have been coming to the store since Bud was a boy.
A new segment of Tessier's market, the Internet, accounts for 5 percent of sales,
and it is growing, says Ed Tessier. At their eBay store, the Tessiers are selling
apparel: special gloves for firefighters, work clothes and high-tech underwear.
They are selling the items to customers throughout North America, Iceland, Germany
and Britain. Ed is considering whether he should develop the store's own Web site
or to remain on eBay.
His brother Eric is still considering his vocational options, but Ed plans to stick
around. "This is our life," he says.
What about the future of the independent hardware store? "Who knows?" Ed answers.
"We might be the survivors and the big guys will go out of business. Sometimes,
the big corporate guys don't catch on to change as quickly."