Plucky Little Competitors

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The indies' success hasn't escaped the chains' notice. Both Home Depot and Borders Books & Music are experimenting with smaller-format stores. Home Depots are supposed to become more user friendly, especially for women, who perform a growing proportion of home-improvement jobs and have been instrumental in Lowe's rapid growth. But the best-run indies should continue to stay ahead of the competition if they're mindful of the old bear joke: Two guys are backpacking and notice a bear approaching. One guy drops his backpack and starts running, while his buddy stays put, frozen in fear. "You can't outrun a bear," shouts the guy standing still. "I know," replies the sprinter. "I just have to outrun you." --With reporting by Matt Baron/Evanston, Deborah Edler Brown/Long Beach and Sarah Sturmon Dale/Minneapolis