Clara's Hardware Store

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Retail Hardware Store Business Plan

Strategy and Implementation Summary

Clara's Hardware will be heavily promoting the store.  We will use the local paper, The Gilmore Sun, to advertise.  In addition, we will have a drawing for five $1,000 home improvement gift certificates that can be redeemed at selected home improvement professionals.  We will have new drawings each week for the first eight weeks of the store's operation. Clara's Hardware will use the drawings to make connections with the local home improvement professionals.  It is our plan to recoup some of the gift certificate money in material purchases that will be made by the home improvement professionals the winners select.

5.1 Competitive Edge

Clara's Hardware's competitive edge is:

  • Location:  Clara's Hardware is located in South Gate Plaza.  The foot traffic in the plaza is very strong. The closest hardware store to the South Gate area is a twenty minute drive.
  • Seasonal Products: Each season has it own unique demand on a homeowner.  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 will find when they enter the store is a repair/project resource area that they can use to plan repairs or projects.  There will be a repair/project resource person there to answer their questions and direct them to the section of store where the needed products are. 
  • In-Store Expertise: Store employees will be knowledgeable in home repairs/projects.  In addition, the repair/project resource area will be used to conduct short trainings and demonstrations in home repair and home projects.

5.2 Sales Strategy

The sales strategy of Clara's Hardware is simple. First, create a shopping environment that will create confidence in the customer that he or she will get the needed material, part, or instructions to get the job done right the first time. Second, make the store easy to navigate, so customer can get in and out as quickly as possible. Third, know your customer's seasonal hardware needs and offer it at competitive prices.

5.2.1 Sales Forecast

Clara's Hardware will hit the ground running in April.

Sales Forecast
Year 1 Year 2 Year 3
Hardware $964,000 $1,090,000 $1,240,000
Other $0 $0 $0
Total Sales $964,000 $1,090,000 $1,240,000
Direct Cost of Sales Year 1 Year 2 Year 3
Hardware $474,000 $500,000 $612,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $474,000 $500,000 $612,000