9 minute read
Co-Op Report
from HBSD-1220
by ensembleiq
At Ace, unusual times the end of the third quarter, picking up a combined 11 stores compared lead to big numbers to the same time a year ago. The Lenexa, Kan.-based Westlake Ace Hardware chain (see sidebar) experienced a 28.3% increase By Ken Clark in same-store-sales while the Farmington Hills, These are not your normal retail Mich.-based Great and distribution conditions. And Lakes Ace Hardware, for Ace Hardware Corp., the most Inc. chain grew recent three months produced some same-store-sales by unusual numbers. 40.5 percent in the quarter. For instance: For Westlake, eleven new California stores
A 221% increase in revenue at (formerly operated
Acehardware.com; as Orchard Supply Hardware Stores)
A 28.9% increase in U.S. retail opened by Westlake same-store sales, at the 3,300 or in 2019 contributed so Ace dealers who share data $19.7 million of the with corporate on daily retail sales; increase in sales. Source: Ace Hardware Corp. Ace added 43 new
A record high revenue figure of domestic stores in the $2.0 billion — up 30.7% from the Ace Hardware Corp. also third quarter of 2020 and cancelled 22 same quarter of 2020. provided insights into the stores. The Company’s total domestic performance of its two major retail store count was 4,585 at the end of
In its most recent earnings release, holdings — Westlake Ace Hardware the third quarter of 2020 which was the company tipped its hat to the and Great Lakes Ace. Combined, an increase of 57 stores from the third unusual environment that has given the retailers operated 194 stores at quarter of 2019. On a worldwide basis, birth to these numbers across much Ace added 46 stores in the of home improvement industry – and “A 221 percent increase in our third quarter of 2020 and specifically for Ace dealers. digital business and same-store cancelled 29, bringing the The heightened importance of both convenience and safety, coupled with the shift in consumer sales growth of 28.9% fueled record revenue and earnings worldwide store count to 5,403 at the end of the third quarter of 2020. discretionary spending from in an environment that The bottom line also sectors such as travel and continues to be very difficult produced big numbers entertainment into home and demanding for both our for the Oak Brook, Ill.preservation, have distorted customers and our associates.” based co-op. Net income demand and driven much of — John Venhuizen, president and CEO of $98.7 million was up the growth within Ace stores in 63.1% and marked a new the U.S.” the co-op said. record for Ace. The co-op
CEO John Venhuizen also announced accrued patronage described the retail dividend to shareholders of $263.8 environment as million, an increase of 66.9% from the “very difficult and first nine months of 2019. demanding for both “I want to genuinely thank the Ace our customers and team for their gutsy performance,” our associates.” said Venhuizen.
Westlake Ace shows growth in Missouri
Westlake Ace Hardware operates 115 stores around the country.
With three other St. Louis locations, Westlake Ace Hardware plans to open a fourth in the St. Peters community early next year.
“We look forward to becoming part of the St. Peters community and continuing to provide a local retail hardware option for its residents,” said Joe Jeffries, president and CEO of Westlake Ace Hardware. “Most of all, we are excited Emery Jensen, a division of Ace Hardware Corp., has launched a new merchandising program called XPRESS Hardware to help specialty retailers grow their business.
XPRESS Hardware is a turnkey, storewithin-a-store merchandising program that gives non-hardware retailers the assortments and marketing support they need to introduce top-performing, essential hardware SKUs into their to show our new neighbors there how we live the Ace Helpful Promise every day by delivering reliable service, helpful advice, and products to help them get their projects done right.”
A soft opening of the new Ace store is planned for late March 2021 at 915 Jungerman Road. The space is currently (at presstime) home to Brewer’s True Value Hardware, which is expected to close on Nov. 30.
Brewer’s is currently engaged in a going out of business sale. A statement on the True Value store’s Facebook page product mix. Three XPRESS Hardware floor plans are available in 800, 1,200 and 1,800 square feet.
“This year has presented many of our customers with new retail challenges,” said Georgia Eaton, manager, sales Spring convention goes virtual
Oak Brook, Ill.-based Ace Hardware Corp. changed the format of its 2021 Spring Convention, which had been originally scheduled as a live, in-person event in Dallas, Texas, in March.
The event has been recast as a digital even and moved to March 9-12.
A separate digital Holiday Trim Show will take place – also in a virtual environment – Jan. 25-Feb. 1.
“The decision to move to a digital format was made due to the ongoing Covid-19 pandemic and with the health and well-being of Ace retailers, employees and vendor partners in mind,” the company said.
reads: “We are so proud to have served our local community with goods and services; and proud to have provided jobs for our great associates. It pains us to let you all down, but please join us for our store closing sale going on now!”
In and around St. Louis, Westlake already operates a store in Brentwood, in Maryland Heights and in St. Louis proper. Westlake Ace Hardware operates 115 stores around the country. The retailer, owned by the Ace Hardware cooperative, is based in the
Emery Jensen’s XPRESS plan Making hardware assortments easier.
Kansas City area. support for Emery Jensen. “One of those challenges for specialty retailers is helping customers get everything they need for their projects in one store visit. XPRESS Hardware is a timely, revenue-generating solution for retailers who want to be a one-stop-shop for their customers.”
XPRESS Hardware assortments are AB movers in their product categories, with high-turn rates and the best ROI across the Emery Jensen enterprise.
Emery Jensen Distribution is a national distributor serving independent retailers in the pro lumber, paint, hardware, and eCommerce channels.
Bought and sold: more moves from US LBM
US LBM has churned out a steady stream of headlines and acquisitions over the past decade. Last month, the building materials distribution giant found itself on the other side of the table as it signed a definitive agreement for Bain Capital Private Equity to acquire a majority stake in the company.
US LBM will continue to operate under the leadership of President and CEO L.T. Gibson and the current management team.
Financial terms of the private “We have grown tremendously greenfield openings. over the past 11 years, and with Founded in 2009 Kelso’s support we were able to accelerate our acquisition with 16 locations in 3 states, US LBM has grown to be a strategy that has positioned national distributor us for continued growth.” of specialty building — L.T. Gibson, president and CEO materials operating more than 250 locations and 37 transaction were not operating divisions. US LBM had disclosed. But the sales of $3.5 billion in 2019. move could set the Kelso & Co. has been US LBM’s stage for larger investment partner since August 2015. expansion by US “We have grown tremendously over LBM through the past 11 years, and with Kelso’s acquisitions and support we were able to accelerate
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our acquisition strategy that has positioned us for continued growth,” said Gibson. “US LBM’s national platform, local go-to-market strategy, relationships with top suppliers, and record of successful integrations continues to make us an acquirer of choice in the building materials industry. We look forward to working with Bain Capital Private Equity and leveraging their experience of helping industrial companies scale and attract additional partners.”
Since the company’s founding, US LBM has opened more than 30 greenfield locations, including six in 2020. The dealer is no stranger to making acquisitions either. In fact, just prior to the Bain Capital announcement, US LBM acquired Zeeland Lumber, a six-unit. Midwest
Zeeland Lumber & Supply of Zeeland, Mich., operates in Michigan and Indiana.
dealer based in Zeeland, Mich.
Zeeland Lumber & Supply, an HBSDealer Independent ProDealer of the Year from 2006, operates three truss and wall panel component manufacturing plants along with three full-service building material yards that distribute lumber and an expansive range of specialty products, such as windows, doors, roofing, cabinets, decking and interior and exterior trim.
The entire Zeeland leadership team will remain with the company, including Mark Miller, who will serve as president, and Mike Dykstra and Rob Groothuis in key leadership roles, according to the announcement of the merger.
“We’re proud to be joining US LBM, an industry leader that shares our commitment to delivering innovation and building trust,” Miller said. “Joining US LBM, with its national platform, expert team and relationships with the industry’s top suppliers, creates new and exciting opportunities for both our employees and customers.”
In August, US LBM purchased Maner Builders Supply.
Another state for Nation’s Best
Nation’s Best, the rapidly growing Dallas, Texas-based hardware and building materials dealer, has acquired Connolly’s Do it Best Hardware & Rental, with five locations in the Fort Wayne, Ind. market.
The move puts Nation’s Best in its fourth state, including Texas, Oklahoma, and Florida. Terms of the deal were not disclosed.
“We are thrilled to welcome Connolly’s Do it Best Hardware & Rental into the Nation’s Best family and are committed to continuing to provide the best level of service and support to Connolly’s customers and staff,” said Chris Miller, president and CEO of Nation’s Best.
“Since 1981, the Connolly’s team has built an exceptional reputation among DIYers and contractors throughout Northeast Indiana and they are a great strategic fit for our expanding company.”
As part of Nation’s Best’s acquisition strategy, Connolly’s Do it Best Hardware & Rental will operate under its existing brand name with its key leadership team continuing to oversee company operations.
Nation’s Best said that it will provide the strategic and financial support necessary “to achieve optimal growth and profitability” at Connolly’s.
“My brother John and I have dedicated our 40-year careers to serving our customers and growing our family business,” said Michael Connolly. “Becoming a part of Nation’s Best ensures that Connolly’s Do it Best Hardware & Rental and all of our associates will remain a relevant and vital resource for hardware, paint, and rental products and services for many years to come. This move also ensures that our customers will continue to be greeted and helped by the same valued associates they’ve come to trust.”
Nation’s Best is a member-owner of Do it Best Corp. Founded just last year, Nation’s Best has rapidly expanded to six divisions and 17 locations in four states with over 350 associates.
Nation’s Best also recently acquired Simms Lumber with two locations in the Dallas-Fort Worth market.
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