As a Home Depot closes, a pair of local hardware stores survive. 2 Davids help topple Goliath.

By John Curran, Associated Press
In truth, many factors played a role in the closing of Home Depot store No. 4552 and in home-improvement giant Home Depot Inc.'s decision to close 14 other "underperforming" stores. At those 15 stores, annual sales averaged about $11 million, far below the $36 million desired by the Atlanta company. Among them: Opposition from grassroots groups that succeed in stirring up boycotts and bad publicity even when they fail to stop the stores from opening. "We've seen big-box stores defeated in over 200 communities in the last two years," said Stacy Mitchell, author of Big-Box Swindle: The True Cost of Mega-Retailers and the Fight for America's Independent Businesses. "Campaigns are proliferating, and even if they don't succeed, the public education they do often has a significant impact on people's shopping choices after the store opens," Mitchell said. In Brattleboro, an artsy southern Vermont town of about 11,700 known for its left-leaning sensibilities, Home Depot was a public enemy even before it opened for business in a former Ames department store 11 2 miles from downtown.

Small by Home Depot standards at 60,000 square feet, the store was sandwiched between Home Depots in Keene, N.H., and Greenfield, Mass. - both within a 30-minute drive. BrattPower, a citizens' group, fought to keep the big retailer out, saying its bargain prices and sheer size would siphon customers from local businesses. "This is not an orange-blooded town," said Al Norman, an anti-sprawl activist who has spearheaded campaigns against Wal-Mart Stores Inc. and Home Depot in dozens of communities. "Yes, it's a bad housing market. Yes, it was a bad location. Yes, it was a small location. But it was also in hostile territory." Loyalty to existing businesses also played a role. Brown & Roberts, a family operated Ace Hardware store downtown beloved by locals for its creaky wooden floors and attentive personal service, couldn't compete with Home Depot's prices on some products, but many customers continued going there anyway. "That first year, business was flat," said manager Paul Putnam, 59, who runs the store along with seven other family members. "We haven't had a banner year in their four years here, but we've managed to make it. Good customer service, having friendly, knowledgeable employees - that's always been our strong point." Neither Fireside nor Brown & Roberts changed its merchandising strategy or price structure to compete with the new giant in town, believing that customers would stick with them. For the most part, they did.

"Last week, I had to get a part for my kitchen overhead vent," said Dan Rubchinuk, 26, of Putney, shopping for gloves and a coffee press yesterday at Brown & Roberts. "I call here and they spend five minutes on the phone with me. I call Home Depot and spend 15 minutes on hold while the person tries to figure out what I'm talking about." Home Depot spokeswoman Jean Niemi declined to comment on the common traits shared by the towns in which stores would be closed. She said lackluster sales were the bottom line. There were a number of things we looked at, but it came down to that," she said. "We regularly look at the financials of stores throughout the company. Those were the 15 that just weren't meeting the return." Yesterday, would-be customers arriving at the Home Depot were chagrined to find a sign saying the store was closed in preparation for a liquidation sale to begin today. Dave Ingalls, 47, of Brattleboro, came looking to buy indoor-outdoor carpeting for his children's play area. He said he would miss the store. "It's close by, and they have a lot of stuff that's right there and right on display that you don't find at every hardware store. You don't have to drive all over town looking for this or that," he said. Others will miss the Home Depot, too. About 80 jobs will be lost in the closing. "I fear more and more of these closures," said Mitchell, the book author. "To the extent that these stores hurt when they opened, they'll do a second round of damage when they close."