NEWS + ANALYSIS
Co-op enters acquisition mode with Nation’s Best Do it Best Corp. is taking a more aggressive approach to growth through acquisition. The Fort Wayne, Ind.-based co-op announced a joint venture with one of its members: Nation’s Best Holdings, a 10-unit retailer with a variety of brands and a thirst for growth. “In the highly competitive home improvement business environment, growth is an absolute imperative,” said Do it Best President & CEO Dan Starr. “We are committed to fueling growth in ways that drive sales today and position the cooperative for sustained growth over the long term. To continue that momentum, Do it
Best entered into a joint venture with Nation’s Best Holdings.” Do it Best is taking a minority ownership stake in Nation’s Best, where the portfolio includes Groom & Sons’ Home Center in Texas (3 locations); Hometown Building Centers also in Texas (5 locations); and Lambert Lumber of Broken Bow, Okla. The company’s most recent acquisition is Hall’s Hardware near Pensacola Beach, Fla. The investment in Nation’s Best Holdings aligns Do it Best with a retailer committed to building a nationwide network of independent stores. Nation’s Best was founded in 2019
Nation’s Best Holdings, led by CEO Chris Miller (above) entered a partnership with Fort Wayne, Ind.based Do it Best Corp.
STAT WATCH
Home center sales heat up The months of May, June and July saw unprecedented social change in the United States. And the pandemic induced stay-at-home, spend-on-home mindset had dramatic impact on sales at Home Depot and Lowe’s. U.S. comps blew up for both companies in the second quarter.
Rivalry Watch: Home Depot vs. Lowe’s Unprecedented comp-store sales growth 40%
35.1% 30 Home Depot Lowe’s
25.0%
20
10
0 15Q4 16Q2 16Q4 17Q2 17Q4 18Q2 18Q4 19Q2 19Q4 20Q2
Source: Company reports For more coverage, visit HBSDealer.com
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SEPTEMBER 2020 HARDWARE + BUILDING SUPPLY DEALER
by Chris Miller, a former president of Parker’s Building Supply. Do it Best’s joint venture invites comparisons with other hardware wholesalers’ efforts to support retail growth in ways that also boost and protect wholesale sales. Memphis, Tenn.-based Orgill’s Central Network Retail Group division with a local-branding approach has grown from zero locations to 113 in less than 10 years. And Westlake Ace Hardware, has grown from 85 stores to more than 130 stores since it became a wholly owned subsidiary of Oak Brook, Ill.-based Ace Hardware Corp. in 2012. In the building supply landscape, the list of fast-growing entities that are competing for acquisitions in the LBM space includes US LBM Holdings, Kodiak Building Partners and American Construction Source. At Nation’s Best, the mindset is to grow by acquiring hardware and lumber businesses around the country, regardless of the business’ current wholesaler affiliation, the company says.
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