BizMart capitalizes on growing warehouse retail trend, capitalizing on competitors' strengths, office products superstore to add 18 outlets in 1989.

BizMart capitalizes on growing warehouse retail trend

Capitalizing on competitors' strengths, office products superstore to add 18 outlets in 1989

When Ron Stegall decided to get into the office products retail business in September 1987, he knew he and his financial backers couldn't be the first to introduce the "hot" warehouse concept to the industry.

Three other major players had gotten there first.

So he did what any savvy player who wasn't first to the punch would do -- he and his team of executives and advisers borrowed the best ideas of those already on the field to create his concept of discount office product retailing -- BizMart Inc.

"What made this concept unique and attractive was all three (competitors) had similar businesses and similar customers, but all three had different approaches and all were successful," he said. "We had an opportunity to study what all three were doing and put together a concept we could roll out with the best ideas from all three."

The result: After just over a year in business, Arlington-based BizMart has opened 10 of its office products superstores in five Texas and Missouri markets and has plans laid out for 18 more stores to be opened in 1989. The stores, which average about 20,000 to 25,000 square feet in size, cater to the small-business market in offering 40 percent to 60 percent discounts off list prices on more than 7,000 products ranging from office furniture and equipment to pen holders and paper clips.

The stores also demonstrate how the so-called warehouse trend in retailing is being applied to office products. While warehouse outlets in retail segments such as furniture and groceries have been open to the public for years, it is only since the early 1980s that retailers have been developing national …