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Orchard Re-Launches Two San Jose Stores With All-New Look And Feel, Saturday, Oct. 6

Orchard Supply Hardware Stores Corporation (Nasdaq:OSH) announced the planned grand reopening of two stores in San Jose on Saturday, October 6, 2012, marking the continuing rollout of its innovative, neighborhood store format. Although both the Silver Creek store (1751 E. Capitol Expressway, San Jose), and Cottle store (5651 Cottle Road, San Jose) have been operational for decades, the transformation of the stores inside and out is so dramatic that Orchard executives and sales associates view these re-launches as new store openings.

“We are making a significant investment in creating a fun shopping experience for our customers. It is wonderful to do that for these customers right in San Jose where Orchard started in 1931,” said Mark Baker, President and Chief Executive Officer. “Cottle and Silver Creek have long been successful locations for us, and we are pleased to include them in our roster of store remodels slated to occur this year.”

The new stores that Orchard is opening and the existing locations it is upgrading are expected to help the company take advantage of the “white space” between small, independently owned hardware stores and big box home-improvement stores. By the end of 2012, Orchard plans to have 12 stores operating in its new, productive neighborhood store format.

Beginning in San Jose as a collective formed by farmers, Orchard’s network of retail stores began in Northern California and then grew throughout the state, with its 89th store opening in Torrance last month. The Cottle and Silver Creek stores will showcase the new design and merchandise assortment tailored to home repair, paint and garden needs in its local neighborhood. The new design also features a shopper-friendly “racetrack” design that replaces the old-fashioned store-length aisles with a neighborhood configuration, color coding and decor that sets it apart from the warehouse stores.

With more than 80 years of experience serving California’s customers, Orchard’s new store format is focused on building relationships and giving customers a pleasant and productive shopping experience. The new design was piloted at Orchard’s San Jose Princeton Plaza store, which opened in September 2011. The Princeton Plaza location is one of Orchard’s most successful stores; customers love the enhanced shopping experience and the store has proven to be highly productive.

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