Hardware Retailing

MAY 2018

Hardware Retailing magazine is the pre-eminent how-to management magazine for small business owners and managers in the home improvement retailing industry.

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Page 172 of 248

HARDWARE RETAILING | May 2018 160 Menards currently has more than 300 stores in 14 states: Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin and Wyoming. 7 The company employs an estimated 45,000 workers, 7 and the National Retail Federation estimates the company pulled in $10.7 billion in sales during fiscal year 2016. That estimate is about $84 billion less in 2016 sales than Home Depot reported and about $54 billion less than Lowe's. However, according to Hardware Retailing estimates, Menards' sales ring up at about $6.4 million less per store than Home Depot, and $4.6 million more per store than Lowe's. Big-box retailers like Target, Walmart and Lowe's have been rolling out small-format versions of their stores. However, Menards has expanded into more locations throughout the Midwest with buildings that are larger in size than their predecessors and retail competitors, too. In 2011, Menards debuted its remodeled Eden Prairie, Minnesota, store, which was a 235,000-square-foot, two-story operation, according to a 2012 article in the Minneapolis Star Tribune newspaper. "Menards has accomplished contradictory feats: It builds stores of enormous size at a time when retailers are downsizing, while also maintaining its reputation as a salt-of-the-earth, family-owned business," the Star Tribune reports. "The retailer has somehow merged intimacy and big box into the same sentence, retail observers say." While some companies wouldn't want to close up shop to remodel a massive building, Menards has done that in many situations. The company can likely do so because of its private ownership. 14 Menards has the flexibility to make changes without reporting to a massive number of stockholders. In addition to expanding salesfloors in many of its existing stores and new locations, Menards has also made a name for itself with its eclectic mix of merchandise. Customers can expect to find everything from standard hardware tools and gardening equipment to groceries and furniture. The company has gained a reputation similar to Walmart, reassuring its customers they can "Save big money at Menards," as their iconic jingle says. The company reports that its stores offer the lowest prices in town and a wide range of categories housed under one roof, creating a one-stop shop for customers. 7 360 Menards in Recent Years 14 Star Tribune, Jan. 29, 2012, Minneapolis 15 The Blade, July 12, 2017, Toledo, Ohio 16 Leader-Telegram, Dec. 1, 2017, Eau Claire, Wisconsin 17 The Progressive, Dec. 15, 2015 18 The Capital Times, April 1, 2016, Madison, Wisconsin

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