Open Register

Retail betrayal

I almost bought a hanging basket of petunias at Lowe’s. Almost.

The husband and I made a run to the store yesterday to get some new mini-blinds and a bulb for our large outdoor porch light. And there, right out front, was a display of some surprisingly gorgeous 6-inch hanging baskets. And boy, was the price nice—around $12.

I pulled down a basket of purple petunias and admired it. “You like it?” the husband asked. “Go ahead and get it. It’s not expensive.”

And I almost did. I’ll tell you honestly, the only thing that made me put it back is the knowledge that I’d be a heck of a hypocrite if I made that impulse purchase. Considering what I do for a living, I consciously try to restrict all my plant purchases to independent garden centers.

But, of course, most consumers don’t have ties like that. Many, I daresay, would pluck up that nicely priced hanging basket without a second thought.

How do you feel about that?

Some retailers I’ve talked with over the years would expect it. They sigh and shrug. They know impulse and convenience frequently trump allegiance to independent retailers. Other store owners feel a level of betrayal when their customer’s dollars go to the big boxes.

Where do you fall on this spectrum?

-- Sarah

Wal-Mart gets a new logo, look

Wal-Mart introduced a new logo last week that eliminates the hyphen from its name. The company also unveiled new Supercenter prototype stores.

• Wal-Mart, er, Walmart? RetailWire
• New prototype. Memphis Business Journal
• Refreshed logo. Wal-Mart Inc.

-- Sarah

Lowe’s looks to grab market share

Lowe’s has independent retailers in its sights, according to a report from Market Watch. The company is looking to gain market share by going head to head with small, independent retailers as well as some its larger rivals.

“In the worst of times, much less capitalized companies are going to struggle to survive in this environment,” Lowe’s CFO Bob Hull said during a presentation at the Wachovia 18th annual Nantucket Equity Conference.

-- Sarah

Are hard goods a hard sell?

When I’m in a plant buying mood, the first place I head is to my favorite independent garden center. But if I’m searching for hard goods or bagged goods I always end up at a nearby big-box store. Why? Because when it comes to these items the mass merchants have better prices and a wider selection. At least in my neck of the woods.

Case in point: The husband and I started rehabilitating our front flower bed this weekend. I wanted some plain black plastic edging to keep the Bermudagrass from intruding. (It’s a losing battle, I know. Just humor me, OK?) I knew exactly what I wanted. The flexible kind that comes in a big roll.

I went to my local garden center and, of course, they didn’t have it. They had something kind of similar, but I would’ve had to buy two rolls and spend a lot more than I intended to. So, I headed over to Lowe’s and got exactly what I wanted and spent less than $30.

Still, I felt bad. I really want to patronize local independent businesses. But when you’ve got two small children and a tight budget, price tends to trump everything else.

I’ve talked to plenty of garden center operators who say they don’t try to compete with the big boxes on price -- particularly when it comes to hard goods. Everything gets the normal markup. Some customers will go ahead and pay the price, others will go elsewhere. That’s just the nature of business.

What’s your strategy? Does your selection of hard goods mirror what you’d find at big boxes? Are prices similar? Or do you do your own thing? What are the pros and cons of that approach?

-- Sarah

America runs on doughnuts

Doughnuts are an early-morning meeting requirement. Not counting the low-carb craze that reached its pinnacle a few years ago, doughnuts are an expectation at any gathering with other green professionals that begins before noon. Doughnuts are mainstays. They’re an innocent pastry filled with glazed goodness. A conversation starter or the sugar boost needed to kick-start focus at a meeting. At least that’s what I’ve always thought.

Last week while watching what I thought was the “lite” news segment on the local Fox channel, I saw a story on how Dunkin’ Donuts was trying to gain a foothold by adding 20 new stores in North Texas this year (125 are planned by 2010).

The cheerful news reporter talked to a few doughnut fanatics who couldn’t wait for the chain to build stores here. They were mainly Northern transplants who had a hankering for the chain’s tasty coffee.

The reporter then spoke with Dunkin’ Donut franchise management, who expounded on the premise that the Dallas area is an untapped market, yadda, yadda, yadda. You know, the typically fluffy news lite feature designed to fill time and boost corporate product-placing morale.

I grew up a block away from a Dunkin’ Donuts, so I was pleased to hear about the chain’s impending arrival in the Lone Star State. My nearly Homer Simpson-esque daydream about jelly-filled Munchkin doughnut-hole goodness caused me to pause. When I went to change the channel, I set down the remote as the story took a somewhat nasty turn.

The formerly bubbly reporter looked directly at the camera, smiled and acidly said, “But what about the effect Dunkin’ Donuts will have on the local doughnut stores?”

She went on to claim that the arrival of a national doughnut chain would crush small, family-run local, neighborhood doughnut shops. Dunkin’ Donuts went from a happy place to purchase excellent coffee and a French cruller to an evil big-business conglomerate out to destroy wholesome, mom-and-pop doughnut purveyors.

I was shocked.

Where was this news reporter when Home Depot, Lowe’s and Wal-Mart stormed into peaceful neighborhoods, squashing independent garden centers, grocery stores and hardware stores in their wake?

When did my local Fox start to care about the little guy? The independent?

The Dunkin’ Donuts incident isn’t the first David vs. Goliath story that I’ve seen recently in the news. It was just the most surprising. Doughnuts are innocent breakfast-meeting food, not tools of the apocalypse.

So, is public opinion being manipulated back to the side of small, independent businesses? I hate to say it, but in a lot of ways, I hope so.

If the local news reporters can attack something as innocent as a doughnut chain, maybe they’ll start seeing the destruction that other independents-crushing chains can bring.

I’m not saying that all mega-chain corporations are bad, just that there needs to be a balance. Both need to survive for our businesses to thrive and survive.

Customers need a choice. They need the opportunity to buy from the store of choice -- be it big or small.

I guess time will tell where public opinion on the small store vs. large chain will turn. In the meantime, pass me a jelly doughnut with sprinkles.

-- Jyme

Lowe’s launches major spring promotion

Lowe’s launched what may be its most ambitious spring marketing campaign ever, The New York Times reported. The promotional push includes an online interactive area where users can visit the make-believe town of Sunnyville and engage in typical spring pursuits. The Web site is also offering spring-theme cell phone ring tones.

-- Sarah

Mass merchants plan international expansions

Big-box proliferation continues, this time outside of the U.S. Lowe’s recently opened its first Canadian store. Home Depot and Wal-Mart are working to branch out abroad.

Lowe’s Canadian launch. Lowes.com

Home Depot vies for U.K. chain. Atlanta Journal-Constitution

Wal-Mart in Japan. MarketWatch

-- Sarah

Road construction causes garden center grief

The Barn Nursery & Landscape Center in Cary, Ill., was dealt a double blow recently, Chicago Tribune reported.

A new Wal-Mart opened across the street. But it’s the new highway median that’s causing the bigger headache. The median prevents northbound traffic from turning left into the store’s parking lot. The newspaper’s consumer advocate helped the retailer tackle the problem.

-- Sarah

Wal-Mart scales back spending again

Wal-Mart lowered its spending forecast for the current fiscal year and expects to spend even less building new stores over the next 2 years, The New York Times reported.

Spending for the current fiscal year should range from $14.7 billion to $15.4 billion. In June, Wal-Mart gave a $15.5 billion forecast, lowered from an original annual budget of $17 billion. The company’s current plans include shifting capital into overseas expansion.

-- Sarah

Home Depot tests new format

Home Depot is testing a new store concept catering to females, according to The Atlanta Journal-Constitution. Home Depot Design Centers will open later this month in Concord, Calif., and Charlotte, N.C. The stores have a cozy, showroom feel and areas for sit-down consultations.

-- Sarah