When regular customers come into the store, pick up only what they need, and then leave without browsing, it’s time to make changes. Customers get bored when the product assortment is predictable. Eventually, they lose interest and decide to shop elsewhere. It’s time to shake things up by adding a niche business. Selecting the right one can excite customers about the cool stuff they find at your store. Since space is limited, devote it to unique or somewhat unusual products. Often, the Items are not typically found in a hardware store. The point is to differentiate your business from competitors.

Admittedly, changing your product mix is risky when competing in a different arena. However, retailers who have successfully made the transition show that specialty niches enhance customer experience and drive profitability. Media brand Ad Age suggests entrepreneurs “Forget about pushing your products to your market and focus on your niche pulling customers to your store.” In other words, if you sell products customers want, they will be motivated to seek out your business.

Selecting the right niche is a process
Every niche isn’t profitable. Before committing time and money, it’s critical to do your homework. Consider the location of your store and what products your customers may need, but they are in limited supply. The items may or may not be usually sold in a hardware store. Imagine selling a dozen kinds of handmade natural soaps, soy candles, and essential oils. People are concerned about chemicals and additives in soap and candles and are purchasing natural alternatives—especially women and younger consumers. The market for natural soaps is forecast to grow 9 percent annually from 2024 to 2031. The candle industry is valued at $79 billion and continues to grow. This niche could be worth investigating if your store is in a small town or college community.

The niche you select can also align with your core hardware business. The breadth of the assortment you sell should be unmatched by competitors. If your store is in a rural community where hunting and fishing are passionate activities, your niche can focus on selling various specialty rods or fishing equipment. Throw some bait, snacks, and craft beer into the mix, and your customers will be ready.

And birdwatchers love to observe their feathered friends. There are 45 million birdwatchers, 16 million traveling beyond their home to spot unusual birds. These outdoor enthusiasts spent almost $2 billion on equipment and $ 4 billion on bird food. Why not expand your pet niche to embrace these customers who are passionate about their hobby? Consider stocking premium bird food, custom-made birdhouses, designer sun hats, sunglasses, sunscreen, and binoculars. Becoming the one-stop shop for birdwatchers may be ideal for stores located in retirement communities, college towns, rural communities, or even cities that make nature walks a cultural pastime.

Seven-step Process to Developing a Niche Market
Lynda Falkenstein, author of “Nichecraft: Using Your Specialness to Focus Your Business, Corner Your Market and Make Customers Seek You Out,” lists the seven essential steps entrepreneurs must take to develop a niche business.

1. Make a wish list. Identify the geographic range and customers you want to target. The trend is toward smaller niches.
2. Narrow your product line as much as possible; it should be something you’re passionate about. “Your niche should arise naturally from your interests and experience.
3. Describe the customer’s worldview. Look at the world and your store from the customer’s perspective and try to identify their wants and needs.
4. Now that ideas are beginning to take shape ensure that your niche has the following five qualities: It fits into a long-term vision; customers want your products; it’s carefully planned; it’s one-of-a-kind; and it evolves, which ensures long-term success.
5. Evaluate your niche market proposal against the qualities in Step 4.
6. Test it by inviting customers to an exclusive sale, demo, or in-store event
7. Go for it! Now that you’ve done your homework, turning your plan into action is less risky.

Keeping your inventory fresh requires creativity and ingenuity. Your search for unusual products may take you beyond traditional hardware markets. Trade shows can also be a good source for purchasing unusual products quickly. Consider partnering with vendors who already have a following of loyal customers. Be sure to meet with your staff to brainstorm ideas for a niche. They are the folks who work on the floor and converse with customers. They may have suggestions from customers that you would like to know about.