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Goes Hardware Electronic
By Offo Grigg Managing Director Pacific Southwest Hardware Association
E forecast l98l will again offer hardware and homecenters profit op- portunity.
Stronger competitive moves will make for better equipped stores in appearance and knowledge- able sales people.
Greater opportunities will prevail in large ticket items when homeowners begin extending their own in-home service programs. Look for good sales in mowers, power tools, and such add-on areas as ladders.
Good sales in mowers, power and hand tools, and edgers with more demand for quality than price . . . greater use of electronic equipment in store operation continued sales/ profit gains.
More use of in-store visual selling especially, video sales projectors being used in departmental areas. With the availability of sales and product tapes most dctive merchandising stores will engage the use of these visual aids in many ways to supplement fewer employees on the sales floor.
This brings to attention the area of management concern for the 1981 sales performance with the advent of continually increasing expenses. Management will be confronted with increased expenses by sales costs or selling costs in store expenses, plus greater cost of energy facets such as lights and heat. A more careful look at open hours by management will better match store hours to match sales hours.
Probably the greatest single item of change in the l98l sales year will be the greater use of electronic equipment in the store operation. Management realizes the benefits now offered and young management is now in favor of even greater retail application by retail hardware and home centers. Programs are established and button pushing will far exceed seat-of-thepants management.
Cash flow and purchase control will become more critical with elevated management ability called upon to corral this problem, especially in view of continued inflation. Although the inflation rate will seemingly readjust to lower levels if the new administration approaches the problem with their campaign promise put to application.
All in all, the indusny will continue to surge with continued sales and profit gains, by containing control on expenses and by applying available improved retail techniques that demand being used.
This indusay will again post a two figure increase over the good 1980.
