Hardware Retailing The Industry's Source for Insights and Information
After three quarters in its fiscal year, Do it Best reported total sales of more than $3.2 billion, a decrease of 7.2% over the same period during the prior year. The co-op attributed the decline to an increase in interest rates, a soft economy and a near nonexistent winter across much of the country.
“We’re experiencing the same thing our members and others in the industry are going through: an unsurprising return to a new normal,” says Do it Best president and CEO Dan Starr.
Even with the decrease in sales, profits remain strong, and Do it Best is making considerable investments in its operations; a total of $27 million has been committed to enhancing warehouse efficiency. The company recently upgraded its warehouse management system, which delivered an industry-leading 99.8% order accuracy rate, the highest in the co-op’s history. The company optimized deliveries, eliminating 1 million miles from its routes last year, resulting in savings of about $3 million. Do it Best has invested $30 million this fiscal year in store projects and member acquisitions to help member-owners drive growth and success in the coming year. Do it Best has increased remodel projects by nearly 200% and has added nearly 130 new locations.
Do it Best also just concluded a very successful spring market in Houston. In addition to exceptional member and prospect turnout, the market featured more than 900 vendors, including a supersized Sneak Peek event with 33% more participating vendors, offering members increased opportunities to maximize margins. In a strategic move to expand vendor partnerships, Do it Best showed off the newest products to be stocked in the warehouse from Paslode, a leading manufacturer of cordless and pneumatic nailers, staplers and fasteners.
“We’re expanding and strengthening our relationships with vendors, even as some competitors are facing vendor losses and legal challenges,” says Starr. “The expanded offerings at our market demonstrate our dedication to providing our members with unparalleled access to the products essential for their success.”
Growth is at the core of Do it Best’s decision to merge with United Hardware, a co-op serving much of the Great Plains region. The move, approved earlier this month, grows membership by 20% for Do it Best. Additionally, the merger adds a ninth distribution center for the co-op in South Dakota, expanding its capacity and allowing the company to serve members more effectively.
“This merger reinforces our belief and commitment in the co-op model, growth and the independent entrepreneur,” says Starr. “It’s a step that reflects our ongoing commitment to not just grow, but to thrive and reinforce our collective strength and open new avenues for success.”
