Menards Inc. is expected to build up to five stores in metro Toledo and more stores out in the region, local commercial real estate experts said.
"You would need 20 to 30 stores to justify a facility that size," said Pete Shawaker, a retail expert at Michael Realty Co. in Toledo, referring to the warehousing operation.
"It tells you they're coming in a big way, slow and steady. It tells you a lot about their commitment for Ohio."
The company has purchased a site on Airport Highway just west of McCord Road in Holland and has tried to find sites on Alexis Road between Telegraph Road and I-75 in Toledo and on Woodville Road at I-280 in Northwood, said Mr. Shawaker, who has worked with Menards. He said he also has been told that two more sites might be needed.
Dave Long, a commercial real estate agent with CB Richard Ellis/Reichle Klein in Maumee, said Menards typically wants a large site for its stores to keep its lumber and other inventory, but the Williams County operation might mean it can get by with smaller sites and supply them more quickly from a nearby distribution center.
Menards, which has 184 stores in 10 Midwestern states and $5.5 billion in sales in 2003, will compete with Home Depot, Lowe's, and even The Andersons and some lumber and hardware stores.
The privately owned com
pany from Eau Claire, Wis., did not return phone calls seeking comment about its plans. It has three stores in Ohio - in Findlay, Lima, and Defiance - and three in northwest Indiana. Its Michigan store closest to Toledo is in Jackson.
But the Holiday City factory and warehouse operation in Williams County signals a plan to serve many more stores, experts said. The proposed 540-acre complex, just east of Montpelier, is to employ 360 people making about $14 an hour in wages and benefits.
In the 635,000-square-foot building it plans to assemble products - it makes and sells such items as trusses and beams - and operate a distribution center, it said in its application for state assistance. It was granted a 10-year tax credit, worth $1.2 million.
The Airport Highway store, Mr. Shawaker said, is to be under construction soon. For its stores, he said, the company needs 10 to 20 acres.
Those space needs, combined with stores that are typically 160,000 square feet with an additional 60,000 square feet outside for merchandise, could pose a problem for finding big enough sites, he explained.
The company looked in Oregon, but could not find a big enough site, said Mr. Long, who also has worked with Menards.
The firm might be looking to add stores in the region, he said, but wants enough potential customer traffic. The Sandusky area might be large enough, but Fostoria and Tiffin may not be, he added.
Contact Jon Chavez at:
jchavez@theblade.com
or 419-724-6128
First Published June 3, 2004, 11:25 a.m.
