Business

May 3, 2008

Outlasting Home Depot

Home improvement giant closes 15 “underperforming” stores.

JOHN CURRAN Associated Press Writer

BRATTLEBORO, Vt. — When a Home Depot set up shop across the street, Fireside True Value hardware store owner Wayne St. John knew it would probably take away some of his customers.

He and his brothers, who’ve operated their store for 35 years, had heard the stories about big box stores and their low prices driving competitors into the ground.

So the store stuck to what it does best – good customer service, competitive prices and a willingness to stock that hard-to-find part.

Four years later, it’s Fireside True Value that’s still standing.

“I’ve had a lot of customers come in and say ‘You guys put them under,’ ” said St. John.

In truth, many factors played a role in the closing of Home Depot store No. 4552 and in the Atlanta-based home improvement giant’s decision to close 14 other “underperforming” stores whose annual sales averaged about $11 million, far below the $36 million desired by the company.

Among them: Opposition from grassroots groups that succeed in stirring up boycotts and bad publicity even when they don’t stop the stores from opening.

“We’ve seen big box stores defeated in over 200 communities in the last two years,” said Stacy Mitchell, author of “Big-Box Swindle: The True Cost of Mega-Retailers and the Fight for America’s Independent Businesses.”

“Campaigns are proliferating and even if they don’t succeed, the public education they do often has a significant impact on people’s shopping choices after the store opens,” Mitchell said.

In Brattleboro, an artsy southern Vermont town known for its left-leaning sensibilities, Home Depot was a public enemy before it even opened in a former Ames’ department store 1 1/2 miles from downtown.

BrattPower, a citizens’ group, fought to keep the home improvement retailer out, saying its bargain prices and sheer size would siphon business from local businesses.

“This is not an orange-blooded town,” said Al Norman, an anti-sprawl activist who has spearheaded campaigns against Wal-Mart and Home Depot in dozens of communities. “Yes, it’s a bad housing market. Yes, it was a bad location. Yes, it was a small location. But it was also in hostile territory.”

Home Depot spokeswoman Jean Niemi wouldn’t comment on the common traits shared by the towns where the stores will be closed. She said the lackluster sales were the bottom line.

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