HBS Dealer evaluated 29 public companies serving the U.S. Hardware and Building Supply Industry. They found that 65% of the companies posted declines in the most recent quarter.

HBS reports that there is much ‘volatility’ in the market resulting from an ‘uncertain macro environmental conditions’.

While this is just a snapshot of some of the key players in our industry, it may indicate a further downward trend.

So – What to do and not do?  Most companies facing falling sales and earnings will ‘hunker down’ by cutting inventories and staff. This creates a great opportunity for smart competitors who see this situation as an opportunity to grow market share. They understand that – “When the going gets tough, the tough get going.”

The Technicians will somehow provide charts and graphs that suggest you can save your way to prosperity. The result can be seen in stores like Target that will take this advice and lose market share.  However, the real Merchants will smell blood in the water and go for the jugular!

Down markets are a wonderful time to gain market share. Don’t let the ‘trend’ become your own self-fulfilling prophecy!