Published Sunday, July 28, 2002
spin on retail
Herald Business Editor
Tooling his way through his store, Jim Thompson doesn't have to look over at the appliance section to know how many types of washer and dryers he carries.
He also knows he wants to have more.
"These are the best sellers in the store,'' Thompson said. "I wish I had more room.''
Thompson and his wife, Lori, bought the Pine Township Sears dealer store last July and have been carving out a niche for themselves in the retail community.
The store is among 850 independently-owned Sears dealer stores nationwide. Under a contract with the Chicago-based company, dealers are allowed to use the Sears name and sell the retailers' merchandise on commission.
Dealers are responsible for hiring and paying their employees and delivering merchandise to customers when needed. Tucked inside Pine Grove Plaza just outside of Grove City, the Thompson's 5,000 square foot boutique store is mainly stuffed with appliances, tools, and lawn and garden equipment.
"We have access to everything the full-line Sears store has,'' Thompson said.
Thompson is a newcomer to the retail industry.
After completing a 20-year stint with the U.S. Air Force as a medical technician, Thompson retired and moved back to Grove City in 1997. At first he ran the office of his brother's fabricating shop but as time passed he found he had a hankering to get into retailing.
Approaching the former owner of the Sears dealer store Thompson found the shop was for sale. After a series of meetings with other dealer owners and Sears representatives, he and his wife decided this was going to be their new career path.
"It was a jump for us,'' Thompson said.
Before taking control of the store Thompson was required to take a one-week course from Sears on dealers store operations. Although there were new technical parts of the trade to learn, after taking over the store he found common business sense rules.
"Just like any small town, we have to take care of the customer after the sale,'' Thompson said. "Word of mouth in Grove City will make you or break you as a business.''
Difficult at first, Thompson said since December the store has performed very well. He's found tractor sales at the store have surged.
"We sold more tractors this spring than we did all last year,'' he said.
There are differences between a Sears operated store and a dealer store. In a dealer store the owner can allow customers to buy an appliance straight off the floor which isn't typically permitted at a company-owned store, Thompson said.
Unlike most company-owned stores where employees often work in one particular department, such as appliances or garden and tools, workers at Thompson's store have free reign of its entire product line.
Employees at dealer stores often pull double-duty. The same worker who sold a refrigerator may also deliver it to a customer. Another difference is that Sears owned stores have a delivery zone for merchandise which they can't exceed. Dealer stores have no restrictions.
"I've gone as far as Pittsburgh with a refrigerator,'' Thompson said.
Dealer store are allowed to have access to most of the merchandise offered on Sears' Web site, www.Sears.com. But the lure for customers to buy an item at a dealer store is that there's no charge for shipping and handling.''
When taking over the store Thompson opted to pay his five employees an hourly rate plus commission rather than just straight commission.
"It takes the cut-throat tactics away,'' Thompson said. "And it helps an employee to know that if they spend five hours here they'll get paid for it.''
Dealing with Sears, a huge publicly-held company, has been a good relationship.
"Sears has been responsive to dealers needs,'' Thompson said. "It's not like we signed the contract and they say 'Do it our way.' ''
He's also found being a local resident has been a plus for sales.
"We see the people we sold a refrigerator to at the grocery store,'' Thompson said. "If we take care of a customer we pretty much have them for life.''
Store hours are 9 a.m. to 7 p.m. Monday through Saturday and noon to 5 p.m. on Sunday. Phone: 724-458-6444.