What Can Credit Unions Learn from a Hardware Store?

Do they have dozens of everything that homeowners’ need for their projects? No. Do they have the lowest prices? No. Can you buy your next stovetop there? Yes! (As long as it’s an outdoor BBQ).
But Ace is thriving. Why? The answer greets you right at the door. So does Walmart, you say? The difference is that the person greeting you at Ace will personally escort you over to the thing you need, answer your questions about the thing, help you find the three other things you didn’t know you needed and then explain how all the things fit together. They are subject matter experts, not clerks. Knowledgeable pros who care about their customers. What a concept!
Which brings me to my point: This differentiator doesn’t take place via Zoom or require yet another forgotten website password. It takes place inside a store. Or to put it another way, if Ace was a credit union, it would be taking place inside a branch where the customer is a member and the hardware expert is a financial services professional.
Driven by COVID, everyone in the credit union industry is wondering about the future of their branches. How will the space need to change? What technology needs to be incorporated? Will branches even be necessary?
These are valid questions and many are already declaring that bank and credit union branches have died and just don’t know it yet. But for those who think that “brick and mortar” space doesn’t provide sustaining value, visit any Ace Hardware store. See how the customers are served. Watch the variety and volume of transactions. Look at the diversity of customers in gender, race and age.
People in the community leave their homes and drive to Ace because it has the products they need coupled with the service they want. Yes, they can buy the same items online, but when they need help with something more complex, they go to Ace. And if this were banking, think of depositing a check at an ATM vs. receiving advice on the exact best mortgage for your needs.
So, as you observe Ace’s business model, think about your credit union branches and whether they are delivering the same value and peace-of-mind as the place with the paint and power tools.

Corey A. Waite is a leading commercial real estate advisor to the financial services industry. As Founder and CEO of Rubicon Concierge Real Estate Services, Corey works directly with senior executives coast-to-coast to deliver strategic plans and transactional services focused on optimizing the needs of employees, clients and members.
CDFI’s – The Magical Map to Success
When it comes to the credit union industry, I never cease to be inspired by the many people I meet who are committed to making their organizations and communities stronger and more sustaining.
CUSO’s, Capital and the Culture of Credit Unions
In addition to enhancing income and capital, a Sale/Leaseback transaction provides a “win-win” by enabling CUSO investors to achieve certain tax benefits that are unavailable to credit unions.
Still Banking on Branches
Silicon Valley Bank (and others), inflation, fed interest rates and future job uncertainty are all fueling concerns about and within the banking industry. Yet, in the face of all this uncertainty, credit unions and community banks are still expanding their branch networks. Why? And are they going about it in the right way?
Your People, Your Workspace, Your Future
Nearly every firm we know has — or is in the process — of evolving its workplaces in order to recruit and retain key talent and grow their business. See what one of the world’s leading consulting firms has to say on the matter.
Credit Union Real Estate Decisions: Listen, Read, Absorb
A lot of smart people go deep to deliver powerful information and insights that can benefit your business. And the best leaders are those who carve out the time to find, consider and, if and when appropriate, employ what they’ve learned.
Flexibility as Fact
For all its angst, the pandemic has been a catalyst for change throughout the credit union industry. CU’s of all size are embracing innovation and re-considering everything … especially when it comes to design and purpose of their branches.
Credit Union Real Estate Decisions: The Same But Different
While considering growth into new markets, credit unions should keep two things in mind: One, even nearby, expansion costs can differ wildly. And two, rigidity in expansion planning – while prudent – can also be costly.
Buildings and Your Board: How to Create a Blueprint for Expansion Success
Expanding a real estate portfolio is a heavy lift for any credit union. Succeeding with an expansion initiative – and with your Board of Directors – requires some important and un-relenting disciplines.
Satisfaction as a Service
In the race to anticipate the future and stay ahead of the competition, it’s important to recognize that the “next shiny thing” is not really what your members want most. What they want is satisfaction.
M&A and the Art and Science of Real Estate Due Diligence
In the face of so much uncertainty, the key to future growth – if not survival — for many credit unions is through mergers and acquisitions. Often times, the ultimate success of am M&A transaction is based on the true value of the seller’s real estate portfolio – and this is where assessment and due diligence isn’t always what it should be.
Rx for Rising Construction Costs: Absolute Flexibility.
The sticker shock rise in construction costs has many credit unions pulling back on their current project pipeline. While that makes sense, it doesn’t mean you have to suspend your overall growth plans.
It’s Business as Usual. Or so they Say.
Trying to make up for lost time (and commissions), the real estate industry is eager to have you make deals. After all, what could go wrong?