Retail Hardware Store Business Plan

Clara's Hardware Store

Executive Summary

Opportunity

Problem

Today, over 40% of the area’s homes are owned by women. In addition, 60% of the area’s rentals are owned by women. More often than not, it’s a woman who will now head to the hardware store for repair parts and advice. Today’s hardware store, which more and more are dominated by the mega-store chains, are cold, uninviting and usually involve more driving time.

Solution

Clara’s Hardware will offer quality hardware products in a customer-friendly, shopping environment. Our customers will get assistance quickly and will leave the store prepared to get the job done right the first time. Clara’s Hardware will also focus on anticipating the seasonal needs of its customers and providing the best products at competitive prices. Most importantly, Clara’s Hardware will make the additional 15 minute drive to a mega-hardware store, too far to go and too expensive to entertain.

Market

The demographics of home ownership has changed radically in the South Gate section of Gilmore. Today, over 40% of the area’s homes are owned by women. In addition, 60% of the area’s rentals are owned by women. More often than not, it’s a woman who will now head to the hardware store for repair parts and advice. Today’s hardware store, which more and more are dominated by the mega-store chains, are cold, uninviting and usually involve more driving time. Clara’s Hardware is uniquely positioned to take advantage of this new fact of life. Conveniently located to serve the South Gate area, Clara’s Hardware offers parts, material, and advice to tackle any home repair, as well as lawn care. The focus is on helping the customer identify what they want as soon as they enter the store.

Competition

Clara’s hardware will be competing against:

Chain stores like True Value Hardware:New True Value hardware stores are specifically designed to appeal to female customers. In addition to better lighting and organization, there’s "an expanded assortment of decorative door knobs and drawer pulls."

Mom and pop owned stores like McGukin Hardware. This store has chosen to have hardware needs as well as other things so that women only have to go to one store to get everything they need.

There are other stores in the area, no one has the same view on this that clara does.

Why Us?

Clara believes that a local hardware store can provide a reasonable selection in the most important product areas, be competitive in pricing, and offer the customer a shopping environment that will assure repeat business.

Expectations

Forecast

The store will efficiently lay out the store to increase sales and give the customers the upmost in attention. The projected growth rate for Clara’s Hardware is quite steady. The store will reach profitability by month six.