Home Depot has experimented with grocery item sales with its test of convenience stores in its parking lots. Now, Menards is taking the grocery angle one step further with in-store food sections at many of the DIY chain's locations.
Customers walking into a Menards will find hand and power tools in their normal place in the store, but those who haven't shopped in a while will find a new area of the store devoted to shelf-stable, refrigerated and frozen items.
"It's not companywide, but quite a few of us are doing it," John Keller, general manager of Menards in Muncie, Indiana, told The (Muncie) Star Press. "The idea is convenience groceries. If someone is here and shopping, they can get a gallon of milk."
Mr. Keller said the company is staying true to its roots with most of the grocery selection being what he called "man food."
At least one Menards' customer said he liked the concept. "I would use it sometimes," said Mark McCoy. "If I go to Menards first and then Meijer, if Menards has milk and bread, I would grab that and skip going to Meijer."
Bill Greer, director of communications for the Food Marketing Institute, said the grocery business was dramatically different than retail outlets such as Menards and Home Depot. The difference can be jarring for those thinking they are on to some easy revenues.
"The supermarket business is a very challenging business to be in," he said. "You have a net profit, after taxes, that average a penny on every dollar of sales. You're dealing with perishables which require refrigeration to keep products safe."
But, said Mr. Keller, so far, so good.
"We're really happy with the way sales are going... We had some contractors surprised we were taking away shelf space for traditional hardware product, but in changing our racking and the store layout, we didn't lose anything," he said.
Discussion Question: Have DIY chains such as Menards and Home Depot bitten off more than they can chew by going outside their core competency to sell grocery items?