Actually, the good specialty stores and good independent hardware stores survive (for the most part). The crappy ones, that provided as poor service and products as HD, but at higher prices, disappear. That's what happened in my area when HD opened in 2000. The nearby lumber store folded, but it sold lumber almost as bad as HD. The good independent lumber store, one town over, continues to thrive. The local plumbing store, which kept bankers hours and was closed weekends went out of business, but one in the next town that opens for about four hours on Saturdays is a mob scene.
HD opened one of their Expo Design Centers not far from me, but it folded after a couple of years, unable to compete with all the independent supply stores, which are much less expensive.
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