National Lumber Closes Losing Store

National Lumber & Supply Co. said it has closed its San Bernardino store after less than a year of operation, blaming a poor location for the approximately $700,000 in losses the store has racked up since its opening nine months ago.

The Fountain Valley retailer built the San Bernardino store on its second choice for a site, and was further bedeviled by delays in construction and opening, said Mel Jaffee, the company’s president and chief executive. The outlet, blocked from view on three sides, suffered from its poor visibility.

“In our rush to get into the San Bernardino area, we did something we wouldn’t normally do, which was to take a secondary location,” Jaffee said. “And we paid the price for it.”

National Lumber had hoped the new outlet would be making money within about a year of opening, but the losses were approaching $1 million a year and profits were three years away, Jaffee said. Typically, a new outlet loses about $500,000 during its first year, he said.

Although the store’s closing will result in a write-off of approximately $200,000 to $300,000 during the current quarter, which ends Oct. 31, it will be offset by profits from a $2.7-million land sale, Jaffee said. National Lumber, which has lost money for the last three quarters, will either break even or post a small profit for the quarter, he said.

The San Bernardino store is the first in company history to be closed, and Jaffee said National Lumber does not plan to shut down any other outlets. During 1987, he said, the company will open stores in south Orange County and Sunnymead, bringing to 20 the number of stores in the chain.