Indies See Niche Between Big Box and Mom and Pop By SHELLY GARCIA Senior Reporter Two recent store openings in the San Fernando Valley seem to suggest that the independents are back to reclaim some of the turf they have lost to large chains over the past two decades. The retailers a new Maytag appliances store in Northridge, and Home Design Center, a home improvement store in Encino which does not sell appliances both cater to homeowners, but their similarities are related less to their customers than they are to the niche each is carving as an alternative to big box stores like Best Buy and home improvement chains like Home Depot and even other specialty stores. Maytag Store, though independently owned and operated, is a concept supplied by major appliance manufacturer Maytag. The Northridge store, which opened late last month, is the first of its kind in Los Angeles. The store is bigger than the typical authorized Maytag reseller, about 5,000 square feet, and all of the appliances on the display floor are operational customers are even invited to bring in their own laundry to test drive the machines or a favorite baking dish to see if it fits in the oven. The idea stems from research conducted by Maytag that showed that shopping for major appliances is a consumers’ worst nightmare, second only to shopping for a car. “It’s daunting. They feel they can’t get good help and the innovation cycle is so quick, it’s hard to keep up with what’s new out there,” said Kathryn McClelland, marketing manager for business development at Maytag Appliances. The notion for Home Design Center, comes from the store owner’s personal experience working on a new home. But like the Maytag store, the Home Design Center was born of the idea that there’s a void for a professionally run store that caters to a homeowners’ needs when making major purchases. “When I shopped at the small, mom and pops it was constant frustration, disappointment and delay,” said Frank Moran, president of Home Design Center, which opened in February. “The Expos were too large and impersonal. It’s a polarized market and the independent voter is lost.” Getting help At Home Design Center, shoppers who are remodeling a kitchen or bath for instance, can sit down with a salesperson or consult with a resident architect and map out the entire project, getting advice on everything from the plumbing work that will be needed to accommodate a new sink to the color of the cabinets that would best coordinate with the tiles. Large chains like Home Depot’s Expo Design Center and Lowe’s home improvement stores, through force of sheer size and advertising power, have driven many of the smaller mom and pops out of business and snagged an ever increasing share of sales. Home improvement centers’ share of washer and dryer sales, for instance, has grown from 9 percent to 15 percent between 2000 and 2002 and from 12 percent to 18 percent for ovens and ranges, according to Mintel International Group Ltd., an industry research group. Meanwhile, the share of market for appliance and electronics stores, which include independent operators as well as big box chains like Best Buy, has slid from 43 percent to 39 percent for ovens and from 37 percent to 32 percent for washers and dryers over the same period, the Mintel research shows. Aggressive action And there are signs that they are becoming even more aggressive. Even Home Depot, which was traditionally known more as a hardware super store has jumped on the home improvement bandwagon. “Home Depot went out and hired two well-known executives and it took them a couple of years to lay the groundwork and now they’re very serious about major appliances,” said Gerry Beatty, senior editor for major appliances at Home Furnishings News, an industry trade publication. But these new independents say that even as the chains have upgraded their merchandising they have not been able to provide the kind of service the upscale customer demands. And the mom and pop stores are often too inconvenient or too unprofessional to instill the confidence of that customer, leaving a gap they hope to fill. “Why would I take a chance on a small mom and pop when the pricing is the same, and I can have architects and designers helping me,” said Moran. “Even to save a couple hundred bucks, it’s not worth it.” So far his hunch seems to be on target. “We’ve exceeded our first six-month goals,” Moran said. “We’re over our weekly numbers by 16 percent or 17 percent every week.” Retail Beat is an occasional column covering news and trends in the San Fernando Valley.