Metro Appliances purchases competitors

Metro Appliances and More has more market share after buying two competitors.

The Tulsa, Okla.-based company bought two locally owned appliance stores with plans to close one and tap into the history and customer base of the other.

In late February, Metro Appliances and More purchased Ken’s Appliance Center Inc. and Foster’s Appliance Inc., said Judy Bilyeu, corporate marketing director for Metro Appliances. The stores were purchased in a single transaction from co-owners James F. Foster II and Carmen Foster; neither could be reached for comment. While Bilyeu declined to discuss details of the sale, she said that Foster’s Appliance would remain open under the same name, and Ken’s Appliance, 1430 W. Kearney St., began a closing sale during the first weekend of April.

The 6,000-square-foot Kearney building is listed by Murney Associates Realtors for $549,000, said commercial agent Neil Stenger. No offers have been made since the property became available March 29, Stenger said, adding, “We should be able to get it sold within six months.”

The Foster’s Appliance location in the Plaza Shopping Center, 1928 S. Glenstone Ave., is expected to remain open under the same management and staff, Bilyeu said.

“Foster’s had been in Springfield for so long. … We chose to keep that heritage part of the market,” Bilyeu said.

She said the purchase wasn’t tied to the rebranding Metro underwent at the beginning of the year, when it changed its name from Metro Builders Supply to appeal to a broader audience. Both stores will continue to serve their original customer bases, she said, with the core of Metro’s business coming from builders.

The builders
Jason Bekebrede, owner of Monticello Homes & Development LLC, said he’s been a customer of both stores since he started his business five years ago. For the 13 or 14 homes he’s built in that time period, he usually bought lighting at Metro and only bought appliances from Foster’s, he said.

“When I first went to Foster’s, I liked its location close to the south side. … They always gave great service at a great price,” he said, adding that he expects service to remain unchanged as long as the staff stays.

Neither Bekebrede nor Brett Godfrey, owner of Built by Brett Inc., thought less competition among appliance retailers in the area was cause for much concern. Godfrey said he occasionally spot checks prices.

“If I’m checking it out on the Internet, I’m thinking that’s probably going to be about as low of a price as you’re going to come across,” he said.

Godfrey estimates he’s built a “few hundred” houses since he started Built by Brett in 1986, and said he’s been a customer of Metro since the 36-year old company came to Springfield in 1994. When he has a custom job, he sends clients to Metro.

“I like being able to send my clients to the appliance store and have them say, ‘You know, Brett’s building my house,’ and they know me. That’s important,” he said. “Metro is a big store, but … you still have that small-town feel, only with a lot of choices.”

The competition
The deal leaves Metro and national retailers Best Buy, Home Depot, Lowe’s and Sears as the key new appliance retailers inside Springfield’s city limits.

At least two out-of-town appliance stores have been offering free delivery to Springfield for decades, however. Barnes Town and Country, just outside the city at 8240 W. State Highway 266, operates with a Springfield address but does not charge city sales taxes, said owner Randy Perryman.

Hal Chapman, owner of Buffalo-based Chapman’s Furniture Inc., said he expects his retail business to improve slightly because of the change in Foster’s ownership. He estimates 40 percent of his client base lives in Springfield, which is about 35 miles from Buffalo.

While Perryman doesn’t expect much of a change at Barnes Town and Country, he said the thought of losing a locally owned store in the area concerns him.

“If we don’t have them, the big box stores will determine everything,” he said. “People better be aware of that.”[[In-content Ad]]