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 Hammered by hardware giants, small stores nail good service 

Hammered by hardware giants, small stores nail good service

27 Aug, 2009 06:12 AM
THE mere thought of a price war between the hardware giant Bunnings and Woolworths leaves Eddie Chehab cold.

Mr Chehab, who owns Lewisham's Advanced Hardware store, and a Canterbury timber centre, fears for the independent retailers who would be caught in the crossfire.

"We feed 19 families, between the two stores," he said, referring to his employees. "I can imagine what is going to happen."

Mr Chehab, who has been in the business for 25 years, still remembers the day a decade ago when Bunnings opened its Ashfield doors. "It reduced our sales about 60 per cent."

Unable to compete with the chain's prices he was forced to close his second store at Revesby.

His business was not the only one to suffer. "Twenty years ago we were surrounded by about 16 hardware stores within about a five-kilometre radius. Now it's down to six."

He responded to the competition from Bunnings by opening his Canterbury timber business, hoping the speciality trade would give him the edge he needed to survive.

He has also tried offering specials, and new products. But, he says, Bunnings has countered every move he has made.

"Whatever new product that comes into our store, Bunnings brings it in, in bulk quantity. Ten years later we are still hurting."

However, Mr Chehab says there was one area in which neither Bunnings nor Woolworths could beat local independent retailers - personal service.

"People prefer to be looked after," he said of his customers, who wanted the convenience of a local store, employing local workers, that offered free advice.

"They know us," said Mr Chehab, who holds an engineering degree.

"They know the knowledge we have. We have a team of experienced people who will show almost every customer how to use a product and where to use it. At Bunnings all they do is direct you to the product."

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Date: Newest first | Oldest first
Thank god the Liberals are still not in - this situation would be even worse! I urge everyone to support small business!
Posted by tigerdicky, 27/08/2009 8:41:45 AM

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Tough competition... business has suffered for Eddie Chehab of Advanced Hardware in Lewisham since the arrival of Bunnings. Photo: Edwina Pickles
Tough competition... business has suffered for Eddie Chehab of Advanced Hardware in Lewisham since the arrival of Bunnings. Photo: Edwina Pickles
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