At Ace, CFO looks beyond 2010 sales growth
Chicago — After a year in which consolidated wholesale sales were up 2.1%, Ace Hardware Corp. is planning for sales growth of 3.0% in 2011.
"It feels good to be back in the positives," said Dorvin Lively, Ace CFO, speaking to co-op members assembled during the Ace Spring Convention and Exhibits in Chicago last week.
Lively added some color to the company’s $3.531 billion sales performance in 2010. "Some of the drivers of the increase in higher sales were increases in the power tool and hand tool category, our heating and cooling, lawn and garden and some seasonal categories," he said.
The fourth quarter was the strongest of the year — with a sales increase of 7.4%. It was also the strongest from a retail comparable-store basis — positive 3.7%. For the year, retail comps were positive 0.7%, a big improvement from negative 6.1% in 2009.
Putting on his business operations hat, Lively expressed enthusiasm for a new benchmarking tool. In March, the co-op received its first peer group report from some 2,700 stores that share POS data. "We never received such broad-based reporting across that many stores," he said.
Analysis of the data will help retailers identify specific areas in which to improve performance.
Over the years, store data has pointed to several basic factors of success, he said: the location and size of the store, local competition, great customer service, inventory amount and mix, best retail practices, and store owner and operational practices.
Do it Best extends partnership with DemandTec
Do it Best Corp. has extended its contract with DemandTec, a provider of software for sales promotions. The Fort Wayne, Ind.-based co-op uses two of DemandTec’s products, DemandTec’s Promotion Planning & Management and Promotion Execution.
"With 4,000 member stores to support, it is very important for us to give each location as much autonomy as possible in communicating to their customers," said Tim Miller, VP marketing at Do it Best Corp.
“DemandTec helps us do that by providing the tools to easily execute different versions of the same promotion or circular, so each store can address the specific needs and opportunities of the market they serve.”
Based in San Mateo, Calif., DemandTec connects more than 350 retailers and consumer products companies on core merchandising and marketing activities. Its client list includes Ahold USA, Best Buy, ConAgra Foods, Delhaize America, General Mills, H-E-B Grocery Co., The Home Depot, Hormel Foods, Monoprix, PETCO, Safeway, Sara Lee, Target, Walmart and WH Smith.
Ace Convention sees boost in attendance
The 2011 Ace Hardware Spring Convention and Exhibits held last week in Chicago saw a significant boost in attendance from the two previous years, according to the Oak Brook, Ill.-based hardware co-op.
Retailer attendance was up 36% compared with Ace’s previous spring show in New Orleans. The Chicago event also posted a 17% increase in attendance compared with the spring show held two years ago in Las Vegas.
Total convention attendance in Chicago topped out at about 15,000, according to Ace.
The next convention for Ace will be held in Denver Oct. 15 to 17.