Product Strategy Aims at “Meaningful Differentiation,” Breaking All Retail Rules
SAN FRANCISCO, Calif. – (RealEstateRama) — In an environment that is experiencing changing demographics, a shrinking workforce, and reduced spending, the conventional wisdom is that brick and mortar retail building supply companies should be shying away from the big box format, opting instead for smaller formats with leaner inventories. Central Valley, a San Francisco Bay Area-based building supply company, is taking a more aggressive stance, by partnering with Simpson Strong-Tie, the industry leader in engineered structural connectors. The agreement between Central Valley and Simpson Strong-Tie vastly expands Central Valley’s offering of Simpson products, giving builders more choice for their commercial and residential products.
Central Valley sees the market for construction-related materials growing 8.8 percent in 2017, with construction faring better than the general economy. With such growth, builders are looking to increase their installation speed and decrease their costs. “Building safer and stronger homes and buildings means staying compliant with code changes. Having the right products helps builders do just that,” Patterson added.
Founded in 1955, Central Valley currently has sales of over $100 million, operates six full-service locations throughout Northern California, fully stocked for the professional. With over 38 acres of inventory and 55 delivery vehicles, the company also offers lumber, hardware and custom milling.
As retailers right-size their footprint and inventory levels, Central Valley is staying on strategy. As customers have more power through choice, enhancing the customer’s choice and experience creates differentiation, according to Patterson. “Both product and service offerings are being developed with the customer in mind,” Patterson said. “That in combination with a lean operating model, allows Central Valley to break with conventional retail wisdom, make bold moves, and provide builders with leading-edge construction materials that are designed to improve the way structures are built.”