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Hardware store owners love the holidays

This is the busiest time of the year for hardware and appliance stores. Homeowners are buying winter items like snowblowers and shovels, as well as holiday items like lights, trees and other decor.

In addition, gift givers are buying tools for their favorite handyman or handywoman and homeowners are investing in new appliances for the coming year.

Mike, Dan and Rick Gilbert, owners of Gilbert Bros. Hardware of Downers Grove, are no exception. They are experiencing busy days at their 14 Sears Hardware, Appliance, Hardware/Appliance and Outlet stores in Indiana, Illinois and Wisconsin.

Their success is due, in no small part, to the fact that they are combining the positive attributes of both big and small businesses to create a hybrid hardware and appliance enterprise that meets the needs of its customers in terms of price, service and product selection.

It is also meeting the needs of a trio of brothers who grew up together in Downers Grove and needed a retirement gig to keep them busy and engaged in something they enjoy.

"Our philosophy revolves around friendly customer interaction. We want to be the old local hardware store where you go to feel comfortable, look around, get advice and have some coffee. But we have an exceptionally great selection because we can supply our customers with anything that Sears makes," said Mike Gilbert, one of the partners.

"What sets us apart from our competition is the power of the Sears name and the lifetime guarantees on brand names like Diehard, Kenmore and Craftsman. All of us grew up with the Sears name and we trust it, so it is incredible for us to be able to offer the complete world of Sears products to our customers. The Sears name is very powerful," he added.

The Gilberts' new venture began in May, 2013, when the three purchased the Sears Hardware and Appliance store in their hometown.

"Originally all of the Sears Hardware and Appliance, Sears Outlet, Sears Hardware and Sears Appliance stores were corporately owned. They had, and still have, four different business models," Mike said.

"But Sears discovered that they couldn't run all 1,100 or 1,200 stores they had nationwide and do it well. They needed a local presence," he said. "So, they turned the stores into franchises and started selling them individually to local franchisees. With private ownership, the stores become more personal. It is obvious all that those running the stores have more at stake."

At first, Dan and Rick ran the business and Mike was simply an investor. Dan had retired from the Downers Grove Fire Department and Rick had grown tired of his career as an apartment property manager. Both had extensive experience with hands-on repairs and home improvements, so they felt competent to take on the new venture.

"We heard about Sears selling their small stores and felt it was the perfect opportunity for us," Mike said.

In fact before long, they purchased two more stores - in Lake Zurich and in Schererville, Indiana. Then four more and then another group until now they own 14 Sears stores in Indiana, Illinois and Wisconsin.

During that process, Mike sold his manufacturing business and joined his brothers last December in the hardware enterprise. He, too, has a very hands-on background. He and his son built and remodeled homes together under the American dream Homes moniker.

"Eighty percent of this is about the fun of working with my brothers," Mike said. "Our mother is still alive and she can't believe the three of us are working together in a business, but she is 100 percent behind us.

"The trick is that each one of us has our distinct realm. I handle the financial side of the business. Dan is in charge of human resources and sales and Rick is the operations guy. He supervises our store managers and takes care of store layout and merchandising. While we cooperate on the decisions, if there is a disagreement, the person in charge of that area of the business has the final say and that works well for us."

The Gilbert Bros.' Sears stores have fared well because they have the full backing and support of Sears with its extensive inventory management and ordering system. Mike estimates that 80 percent of the inventory they carry is determined by Sears, while 20 percent is left up to the discretion of the franchisee.

"We can say 'no' to a product and they definitely want our feedback, but this takes a huge burden off us and allows the three of us to own multiple stores and employ over 200 people. We would need a bigger infrastructure if they didn't handle all of that for us," Mike said.

"This is a very nice business model for three older guys. Our managers manage the stores. We manage the managers and Sears manages the product mix."

The biggest challenge posed by the Gilberts' rapid growth, Mike believes, was setting up the infrastructure and systems like payroll, banking, accounts receivable and payable and coming up with the necessary rules, regulations, policies and procedures to a large, spread-out organization.

"We will probably buy some more stores, but that really depends upon on how well we do with the ones we already have," he said. "There are lots of opportunities out there for expansion as far as Indianapolis and St. Louis, for instance. There is a multiunit franchiser in California who owns more than 100 Sears stores, so we are nowhere near the limit of what we could potentially do."

The Gilbert Bros.-owned Sears stores in the Chicago area are located in Oswego, St. Charles, South Elgin, North Aurora, Darien, Downers Grove and Lake Zurich. There are also three in Wisconsin and four in Indiana.

For more information, call (630) 301-1856.

From left, Rick, Dan and Mike Gilbert of Downers Grove-based Gilbert Bros. Hardware own 14 area Sears Hardware franchises. Courtesy of Gilbert Bros. Hardware
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