Case Study Hagan Ace “WOWS” North Florida

Nestled in a community of 1,600 in Callahan Florida, is Hagan Ace Hardware’s 60,000 square feet of “WOW -We can’t believe we have a store like this in our town.” This mega store, which was envisioned not only as a hardware store but also as a general store with something for everyone, is a shining beacon of pride to these hardworking, down-home townsfolk. Since no national retail chain possessed Bill Hagan’s vision, passion for excellence or civic pride and would open a retail outlet there, consumers had to travel to Jacksonville for uncommon hardware and building materials. When Hagan Ace opened, these basic needs were not only met, but were augmented with eighteen departments featuring a broad array of products such as kayaks and paddleboards, gifts, fishing, and marine supplies, and seventeen services including firearm licensing and even flag retirement. This modest town of 1,600 then became a destination location for thousands within a two-hour radius.

Legacy Creates the Vision

Bill Hagan explained his vision. “My grandad’s store had been here for 78 years, and all the family is of retiring age, so we agreed to buy them out. My Dad married the oldest Brandies daughter, Ann and got his start in the hardware business. We wanted to honor the legacy of my Grandad and the Brandies family by offering the community way more than a hardware store. That’s why we got into the garden center, gift shop, hunting and fishing equipment and the uniqueness of the drive-thru lumber yard.”

Uniqueness of Drive -Thru- Lumber yard

When competing with the likes of the big boxes, Hagan Ace needed a competitive advantage. Bill explained, “everything we wanted to do from day one was a drive- thru that would set us apart from Home Depot or Lowes. The drive -thru is more expensive but in today’s market if you are going to offer the remodeler and the homeowner, you have to relate to where they are shopping. They are shopping at Home Depot and Lowes. The labor savings and way less loss of product from sun and weather damage will help pay for it.” Since Hagan Ace did not have experience here, they enlisted the services of Ron Johnson, of Johnson Design Services. Bill explained, “We gave Ron a list of every product we were considering stocking along with the sales volume. Based on that information he laid it out. We never could have come up with the plan we ended up with. He is a professional. He knows what he is doing. We are very happy.” Johnson utilized a mix of cantilever racking for dimensional lumber, pallet rack for plywood, shingles, roofing, bag goods, molding, and doors and windows. A laydown lumber rack for slower moving boards and a mezzanine above for insulation and seasonal products completed the design. Bill preferred the cantilever for dimensional product explaining. “We’ve seen the racks where you put the whole bundle in where you are looking at the end of the boards instead of the length of the boards. We did not think that was the way we wanted to go. We are happy with the cantilever system and the laydown rack we are using.” Johnson then teamed with LJS Solutions to supply the pallet rack, cantilever, laydown rack/mezzanine and installation.

Competitive Advantage

Most importantly their lumber drive- thru gave Hagan Ace their essential competitive advantage over Home Depot and Lowes. Bill explained, “We can keep it spotless. It is under roof. It is signed. You pull up. You can see where treated is, where spruce is. The yellow pine and roofing are fine. It is easy for the customers to pull in, shop, and look at the item. We do our saw cutting and everything out there. It is self-contained, well organized. Literally you do not have to get out of your car. We will charge you in that drive through. We will load you, so the customer does not have to get out of his vehicle. “

Efficiency and Reduced Operating Costs

The final product checked all the boxes:

Product shrinkage reduced by shielding product from the elements and efficient material handling to increase profits.
The ability to add products expands product visibility, increasing sales volume.
Product merchandised in similar groups (by shipping order of a house package) reduces drive time to reduce material handling cost, also cutting wait times for customer.
Thirty-foot-wide aisles speed customer checkout, reduces traffic congestion, while solidifying repeat business.

Only Way

Bill Hagan expanded on the importance of image and how it affects sales: “The drive- thru definitely enhances sales because when a customer comes up and sees all that lumber it makes a statement. I think just the visual effect of all that lumber stacked twenty feet tall makes a bold statement that you are in business. In today’s environment competing with Lowes and Home Depot it is the only way I would go.”