9-9-2007
SPECIAL REPORT - CONSTRUCTION
Home improvement competition heating up
in South Kitsap
By Rodika Tollefson
For many years, Port Orchard has been home to two hardware stores — Coast-To-Coast on Bay Street where St. Vinnie’s is now located and later the Ernst Chain at Town Center Mall (formerly South Kitsap Mall). Then came True Value, which has since became Scott McLendon’s Ace Hardware, alone with the venerable Arrow Lumber (formerly Bethel Lumber) has been located at the far end of Bethel Road for about as long as anyone can remember.

However, for the last 13 years, McLendon’s has been the most popular place in town to buy anything from nuts and bolts to hard to find parts. But in the near future, competition will heat up, as two home improvement giants move into Port Orchard.

Lowe’s is already well under way, with construction moving at fast pace off State Route 16 and Sedgwick Road. Just a few short miles away, Home Depot has plans to build on Bethel Road near Salmonberry.

“I figured Home Depot and Lowe’s will come here some day, I just didn’t know it will be this soon,” said Scott McLendon, who has owned McLendon’s for a total of 13 years, starting out at a different location before moving to Mile Hill Drive.

Lowe’s is expected to employ as many as 175 people in its nearly 150,000-square-foot store, which includes a 31,500-square-foot garden center. By comparison, McLendon’s employs about 90 people between its two locations in Port Orchard and Belfair.

McLendon, however, says he is not concerned about losing a lot of business in the long term. Not only does his store offer a wider selection (almost double that of a chain hardware store), but he feels it’s the customer service that will keep people shopping at his store, especially since 95 percent of McLendon’s items are competitively priced.

McLendon’s Hardware has a lower turnover compared to typical retailers. McLendon says it’s because employees are treated like family. “I figured if I treat employees very well, they’ll treat customers the same way,” he said.

While most chain retailers shy away from involvement in the communities where they make their profits, McLendon is also quite involved. He’s a member of Port Orchard Rotary, and has developed a reputation for donating to most non-profits — especially when it comes to auction items.

A down to earth kind of guy, McLendon leads by example — he comes to work seven days a week at 4 or 5 a.m. and does whatever is needed, from helping customers on the floor to taking out the garbage. In fact, he started out in the hardware business at age 7 sweeping floors in his family’s store, and he’s worked in the family business for many years before venturing on his own. He is still part owner of McLendon Hardware, which has six locations in other parts of Puget Sound. When it came time to open his own store on this side of the water, however, he went solo, separately from the family clan.

“There is nothing I won’t do — I’ll go out and sweep and empty trash,” he said. “I’m part of the business. I want to show employees I’m no better than they are.”

That kind of work ethic isn’t lost on his employees. It’s not unusual for a customer to be offered assistance half-dozen times or more during one shopping trip. “I get compliments all the time about my employees,” he said.

McLendon said it’s typical for a small hardware store to lose as much as 15 percent of its customer base initially when a chain store comes to town, but most of those customers come back. “In the long run, we’ll continue to grow and keep expanding,” he said.

The interest by big home improvement chains is an indication that the area is expected to grow. There are many reasons why Lowe’s chooses to make a average investment of $18.5 million when deciding to open a new store, including area growth, said Maureen Rich with Lowe’s public relations office in North Carolina. “Our goal is to build the best store in the best location for our customers, which means paying attention to an area’s potential for growth, population and ease of access to the new store, to name just a few,” she said. She also stated the company works hard “to be a good neighbor” in each community.

Lowe’s is expected to open doors in the first quarter of 2008. It will be its second location in Kitsap County. Home Depot may not be far behind, now that the hearing examiner approved the project. Home Depot has been courting Port Orchard for many years. The store, which will include more than 100,000 square feet of retail space and another 27,000 for a garden center, is expected to employ 150 people.