GILROY
– The hardware and home-improvement offerings for fast-growing
Gilroy just got bigger – at least for now.
GILROY – The hardware and home-improvement offerings for fast-growing Gilroy just got bigger – at least for now.
City and Chamber of Commerce officials gathered Wednesday night to celebrate the opening of a new Lowe’s Home Improvement Center, sawing through a ribbon-bedecked piece of lumber for cameras instead of cutting a ribbon to commemorate the event.
“We want to be the best corporate citizen in this town,” Don Raynor, Lowe’s district manager for the Bay Area, told the dignitaries outside the massive store at 7151 Camino Arroyo. “We want to be part of your community.”
The new store is adjacent to a new Costco food warehouse and is part of the Newman Development Group’s Pacheco Pass regional shopping center at U.S. 101 and state Highway 152.
The 157,000-square-foot store features a garden center, drive-up lumber yard and a wide selection of inventory that ranges from appliances to New Zealand flax plants.
With bright, wide aisles, Raynor and store manager Rick Watson said the company stresses a friendly shopping environment for residents and homeowners as well as those in the building trades.
“We concentrate very much on having a safe shopping atmosphere,” as well as customer service, Watson said. “A lot of our market research indicates when homeowners make purchases, it’s a combination (decision) between husband and wife or couples – so you have to appeal to all sides of the home improvement business.
“That too, is something that’s very important. Our marketing formula is such to make people feel comfortable in our store.”
Bill Lindsteadt, the city’s economic development director, agreed the emphasis is on the regular Joe or Jane.
“It’s more of a consumer-friendly building equipment and supplies store,” Lindsteadt said. “It’ll be a great complement to that development out there.”
The new store will employ more than 140 people, officials said. Employees hail from a radius that includes San Jose, Salinas, Los Banos and Hollister.
“The majority of the people were hired locally, and we’re very proud of that,” Raynor said. “We went through hundreds of applications to select the (workers) we have here.”
Lowe’s is eventually expected to generate roughly $350,000 a year in sales-tax revenues for the city, which generally uses the unrestricted discretionary money to pay for police, firefighters and other salaries. City officials approved a $920,000 economic incentive package to help lure the business to town.
Under the incentive program, certain retailers and industries can receive credits for the development impact fees the city usually charges for infrastructure such as road improvements. Instead, the fees are repaid through sales taxes generated from the new development. Lowe’s has guaranteed its taxes will cover the credits within three years, officials said.
“It’s a very nice looking store, and we hope they do well,” said Councilman Bob Dillon, who attended the event with Councilman Craig Gartman. “We certainly anticipate the tax income from it.”
The store is part of a major West Coast expansion push by the North Carolina-based company. The company’s closest store is currently in San Bruno, Raynor said, although more are expected in the Bay Area in coming years.
City economic development officials say population growth, location, the convenience of U.S. 101 and land affordability compared to surrounding areas are reasons that Gilroy has been able to attract the attention of national chain stores that will populate the Newman center and the Regency center across state Highway 152. Wednesday, Raynor noted Gilroy’s status as a destination center.
“When we looked at the Gilroy market we saw it as a great opportunity to bring a store to Gilroy,” he said. “With the retail environment around our particular site with Costco and Target and I understand maybe Wal-Mart across the street, this will become a destination that we will pull people from I would think possibly 50 miles or more. We think Gilroy has a bright future at Lowe’s.”
Besides Lowe’s, Gilroy also has Home Depot, Orchard Supply Hardware and Ace Hardware stores.
“I’m sure the other hardware stores will feel it, but that goes with any new store that comes to town,” Lindsteadt said. “But I think that will level out. (The Lowe’s store’s) main draw will come from out of the area, I believe. That will leave plenty of business for our existing hardware stores.”
Orchard Supply Hardware is reportedly considering a move from its Tenth Street location to Morgan Hill. The Gilroy store’s manager referred a reporter to a corporate office, where officials could not be reached immediately for comment by press time.
Lindsteadt said that an Orchard Supply move has been talked about, but said he hasn’t heard of a formal decision at this point. He hopes and believes the store can remain in Gilroy.
“Competition is competition,” Lindsteadt said. “Orchard Supply is a good store. I think they will be able to still be successful here.
“Yes the Lowe’s will share part of their customer base, but Orchard Supply was primarily the only game in town for a lot of years. I hope they can maintain their store here.”
Wednesday’s Lowe’s event was an “employee night” barbecue event meant to allow employees – who did the majority of the work to set up and stock the store’s towering racks – to show off the store to their families and friends.
Store officials invited contractors to tour the store today, the first day the doors will open to the public. A more formal grand opening event featuring an advertising blitz and activities like visits from a stock car and a chainsaw wood sculptor are planned for next Wednesday.
