January 5, 2009     Reported By: Anne Ravana

Maine-based discount stores Marden's and Renys are reporting stable sales figures despite the economy. The low prices and presence in all parts of the state continue to draw eager local shoppers. But the owners say they always have plenty of competition.

On a recent post-holiday weekday, the Bangor mall was relatively quiet. But just a few miles away, the Brewer Marden's store was swarming with shoppers. One Marden's fan - Barb Freedman of Glenburn - says trips to the self-described "surplus and salvage" store have become part of her routine.  "Whenever I have some free time I come in and look around and I'm usually happily surprised, cause I find things I can't find anywhere else."

Anne Ravana:   "Did you find something like that today?"

Freeman:  "Yes, I did. It's a sinus mask and I have one like it and it's wonderful and I've been looking all over for it and they have one here."

Judging by the lines at the checkout counter, other shoppers were having similar luck.  In fact, despite the sharp downturn in retail sales over the past year, revenue at Maine discount stores such as Marden's and Renys has remained stable, if not up from last year. "I'd say '07 and '08 are gonna be comparable," says Paul LePage, general manager of Marden's 14 stores around the state.  "We've done pretty well. I don't think there's a lot of growth this year, but we're very pleased with the fact that there's been a drop in the high ticket items like flooring and furniture, but all the other departments have grown to make up for the slow sales in the high ticket items."
 
LePage says it's too soon to report any overall revenue figures for 2008, but he says it's clear that stores near the Canadian border outperformed those in the central and southern parts of the state. He attributes that in part to the stronger Canadian dollar.  "For the most part, the northern stores, the border stores to Canada, were the hero stores this year, you might say. They saw some growth. But the middle of the state, the southern part of the state, sales were pretty comparable to last year."

And John Reny, who with his brother Bob, owns the 14 Renys stores in Maine, says sales have increased slightly over last year.  He estimates 2008 brought about $60 million in revenues.  "We've had a fairly good year. I mean, it hasn't been a banner year but we're gonna end up with an increase for the year probably in the 2 and a half to 3 percent range."

Reny's even decided to expand this year, doubling the size of its Bridgton store and putting a large addition onto its Belfast store. Reny says those moves have brought more business, even if they raised a few eyebrows.  "I think it was a little bit risky. We're very well capitalized so we're not spending money we don't have but it was a little bit of a bold move."

It may come as a surprise that Marden's and Reny's don't consider themselves to be in competition. Both Reny and LePage say they cater to different kinds of shoppers and have different inventory.  "I don't see Marden's as competition," Reny says.  "We seem to complement each other pretty well. I mean we carry some of the same stuff we've got some of the same sources but are really a different type of retail outlet than we are. I think our biggest competitor is Walmart."

Reny says that the movement to buy from locally owned businesses is another boon to his retail operation. And back at Marden's in Brewer, Max Shapiro of Presque Isle is taking part in that movement.  "Well, you never know what you can find," he says.  "And usually it's a good deal. Here I bought rag wool gloves, $4.98, where they sell at other places at 20-something dollars.  You can't beat that!"

And that raises yet another reason Mainers shop at their local discount stores:  They earn the right to brag about how much money they've saved.