Like its bigger stores, a majority of the selling space is dedicated to apparel, footwear and home furnishings. In doing so, Sears is returning to its roots. Next year, Home Depot will begin testing its Villager's Hardware concept with four stores in New Jersey. The stores will be only a third of the size of its warehouse-style Home Depots and carry mostly merchandise for small home projects, such as tools, garden supplies and paint. Finally, these retailers are beginning to see that people don't want to travel to shop.
Price is clearly the biggest threat posed by the new mini chain stores.
They can charge less than their local neighbors because the giant corporations supporting them have better purchasing power with suppliers. In addition, the new stores are sleek and better-designed. Everything, from the floor layout to the kind of paint for sale, has been thought through extensively. The neighborhood stores are mobilizing to take on their new competitors. In New Jersey, Joe Dobrzynski of Eighteen Lumber reminds his customers that he doesn't charge a delivery fee, while Home Depot does.