Shooting star from the Midwest

Retailers everywhere can probably thank their lucky stars that they are not operating stores in America’s Midwest and competing with Menards, a privately-owned DIY chain cranking out an estimated $ 8.3 billion in sales from some 262 stores. Although the world’s two largest DIY chains, Home Depot and Lowe’s, occasionally run colourful, multi-page circulars, Menards runs them every single week, and adds some shorter 3-day promotions in-between. And, like Depot and Lowe’s, the company also uses television in some local markets, as well as some billboards. What once was a minor chain of smaller, cluttered and messy stores has evolved into 262 (and growing) huge, attractively merchandised and splendidly maintained DIY stores. Headquartered in Eau Claire, Wisconsin, a city with a population of 64 000, the company first expanded from its home state of Wisconsin into neighbouring Minnesota, then continued expanding throughout the Midwest until it now operates in 13 states, 26 per cent of the entire country. The 13 states are Wisconsin, Minnesota, North and South Dakota, Wyoming, Iowa, Michigan, Nebraska, Missouri, Indiana, Illinois, Ohio and, quite recently, Kansas. Now it plans to open stores in Kentucky and Virginia next year as it spreads outside the Midwest. The chain keeps expanding store sizes as well as its geographic reach. While Home Depot and Lowe’s are limiting store size to just over 10 000 m², Menards is now operating a number of units with a sales area of 20 000 m² or more. The company also keeps adding new lines and categories. Several years ago it added major appliances and more recently has been adding a short line of work clothing and other selected apparel, as well as some grocery items. The number of grocery items seems to be increasing on a fairly regular basis; they are listed on its web site when they are available in certain stores. To supply its network of stores, the company first opened a distribution centre in its home city, Eau Claire, which was subsequently expanded to its present size, and later added another one in Plano, Illinois. It has since set up two other facilities, one in Holiday City, Ohio, and one in Shelby, Iowa. It all began in 1958 when John Menard, Jr., as a college student working part-time, began building pole barns for farmers and others needing low-cost storage facilities. At the same time he was also working nights at a local movie theatre. The business grew and customers began asking about buying other products…