Before and After: Orchard Supply

“Historically, we were just straight-aisled, fairly repetitious, fairly nondescript, and if you knew exactly where you were going, you could find it,” said Orchard Supply CFO Chris Newman. “But other than the signage, it didn’t say much about the experience.”

Things are changing at the neighborhood hardware chain. Now under the ownership of Lowe’s, but calling its own shots, San Jose, Calif.-based Orchard Supply is stepping up its store design initiative. In February, the company’s new format opened in Los Angeles. Five more are planned in 2014, and another 10 in 2015.

“Our goal was to create a warmer, less traditional environment and to make sure we were focusing on the adjacencies of products,” said Newman.

In order to make the most of the space without increasing square footage, the new format was formulated on a racetrack configuration, with wider boulevards to increase visibility. Additionally, Orchard threw in some color coding on the walls to help customers easily determine whether they were in the garden, tools or hardware section. The nursery section got more breathing room, and a Workbench station was set up in the front to help consolidate all the various services offered at Orchard.

The first store boasting the new format opened in September of 2011 at the San Jose Princeton Plaza location. Today, there are 19 stores — about 25% of the total Orchard franchise — adhering to the format.

The results are more than tangible. Orchard Supply has experienced double-digit comps, and stores with the new format have achieved an approximate 15% increase in sales. Beyond the numbers, Newman says the appealing redesign has attracted a higher number of women to the store, created a more accessible hardware experience overall and encouraged shoppers to linger in the store.

“It’s accessible, bright and easy to navigate,” he said. “Women say they like to shop the store and really spend time in it. It’s interesting to watch people and [take note] of how long they stay in the store, [encountering] new areas of discovery as they make their way around the racetrack.”

The stores get plenty of style points, but the key is people, Newman said. “We call it a neighborhood store for a reason. There’s a level of focus and localization that we bring to the store because we truly believe that we can be the neighborhood hardware store for these folks.”