Should Stores have exclusivity rights?

[sworpad]

I got to thinking Menards has a huge selection of brands under the Robert Bosch and Chervon parent companies. Home Depot already has the TTI market covered. Lowes is also a big SB&D retailer. Should the big 3 home improvement stores have exclusivity rights for certain brands of tools? It seems like they are kinda sorta doing this already. Smaller tool stores like Ace hardware, Acme tool, Do it Best etc. would not apply. Menards could get rid of the SB&D presence and optimize the brands under the Robert Bosch, Chervon, Masterforce, and Metabo/Metabo HPT brands. Home Depot could optimize for TTI brands and Makita. Lowes would be full on SB&D and Kobalt. It might give tool users of multiple brands incentive to shop between stores instead of favoring one over another. Having less brands could also mean you could offer larger lineups of one brand in store instead of having to offer less of one brand to make more room for other brands. It could be slightly less convenient for some but offer a slightly larger line of products per brand which could be an acceptable compromise.

 

[DPG]

Sounds like one for one of our American members - Megawatt maybe?

 

[plugsandsparks]

I suspect that there is a huge document (contract) drawn up between retailer and supplier agreeing exactly what lines to cover what pricing to offer, special offers, warranties etc etc

As a consumer , all our power is to decide whether to purchase or not.

Both the retailer and supplier have to agree to both mutual satisfaction, so forcing a retailer to shelf a rarely bought item, like a specialist cutting tool, might be hard for the retailer to do unless , they are very well compensated.

Its much easier to order off a catalogue and get delivered to store, that way no retail shelf space is used for specialist items.

So basically, leave them to it, they are big enough and ugly enough to work out whats best for the consumer as the consumer has the ultimate say.