Waging War with the 'Big Boxes'
Gallup Lumber insists it can survive Home Depot with its customer service

By Bill Donovan
Staff Writer

GALLUP — When Home Depot opened up last month in Gallup, the talk was how would this affect Gallup's biggest hardware store Gallup Lumber and Supply.

Officials of Gallup Lumber say that while it is too early to say just how much the company's revenue will be affected, the company will "do whatever is necessary to survive."

Mike Stauder, one of the managers of Gallup Lumber, said early indications are that revenue for the company during the first weeks of Home Depot's opening are on par with last year.

But he points out that figures provided by Ace Hardware indicate that in other cities where Home Depot has opened, local stores have seen anywhere from a 35 to a 50 percent decrease in business.

A look at Gallup Lumber's parking lot has shown a decrease in the number of cars but officials for Gallup Lumber remain bullish on the company's future.

"Yet, in spite of this increased competition, we continue to grow our business," said Sherwood Stauder, owner of the 66-year-old Ace store.

"Yes, the competition from the nearby Home Depot presents an added challenge in the marketplace," he added. "But the kind of customized, personal service provided by our knowledgeable staff is what customers still seek . . . and will bring them back to our store time and time again. It's the type of customer care you usually won't find in those warehouse environments."

Pat Butler, who owns an office supply store in town and expects the day will come when his business will face competition from a "big box" operation like Staples or Office Max, said he feels companies like Home Depot take more from the community than they give.

Sure, prices may be a little lower but big box companies usually pay lower wages, force people to take reduced hours so they don't have to pay benefits and ship their money out of town, Butler said.

Local companies, on the other hand, provide a great deal more service to their customers, he said.

"What happens when you come in here," Butler said, "someone is there to greet you who knows the inventory. If there is something we don't have, we can order it for you."

He said he has visited Home Depot once for a chalk line and had to talk to four people at the store before he was able to find someone who knew what he was talking about and knew where it was located.

"You won't find that happening in a local store," he said.

Mike Stauder said he is already seeing some customer dissatisfaction about Home Depot.

"We have had some people come in here with things they have purchased at Home Depot and asked how to use it," he said. "That's the kind of service we provide that Home Depot doesn't."

He pointed out that the month before Home Depot opened, Gallup Lumber had 85 employees. A month after it opened, it still has 85 employees.

"Everyone has stayed with us because they know we will be competing for our customers' business," he said.

Sherwood Stauder said one advantage Gallup Lumber has over Home Depot is that it provides such services as propane tank exchange, key duplication, pipe cutting and free, prompt in-town delivery.

Less than a year ago, The Helpful Hardware Club was implemented at Gallup Lumber. The club provides a reward system that earns customers points with each purchase and each month customers who belong to the club receive a rewards certificate.

The club has been a huge success, said Sherwood Stauder, with close to 15,000 members and growing.

He agreed that the array of products sold by Home Depot is extensive.

"However, most people do not realize that through the Ace retail distribution center that services us, our product selection actually is more extensive than the big boxes with 65,000 different kinds of products available," Sherwood Stauder said.

"We can customize orders in response to customer's needs and wants and arrange for a special order to arrive within days," he said.

Customers are also able, he said, to go to the Internet to www.acehardware.com and have items shipped to Gallup Lumber.

"In addition, as a member of the Ace cooperative buying power of more than 4,800 stores worldwide, we can buy products for substantially less than if we bought direct from a manufacturer," Sherwood Stauder said. "That allows us to offer competitive pricing on many items."

The company is looking at one area to make changes to be more competitive longer hours.

Home Depot is open until 9 p.m. and Gallup Lumber is considering, said Mike Stauder, increasing its hours so it will be open in the evening as well.

However, if it does increase its daily hours, it will probably only be until 7 p.m., he said.

As for Sunday service, he said that seems unlikely at this time because of the desire to allow its employees to spend Sundays with their families.