AHMA Index shows current sales declining
The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index declined in October to 216.7 from 245.8 in September (October 2008 = 100), while the Future Expectations Index increased to 208.6 from 148.3 in September.
In comparing current sales levels with year-ago levels, 52% of respondents said sales were higher in October versus year-ago levels, down from 59% in September, while 19% reported sales were even, and 29% said sales were below year-ago levels.
Looking forward six months, 52% of respondents said they expect sales to be above current levels, up from 36% in September, while 40% of respondents said they expect sales to be even in six months, and 7% expect sales to be below current levels.
Looking forward one year, 69% of respondents project sales will be higher, up from 50% in September, while 26% project sales will be even one year from now, and 5% project sales will be below current levels.
“Many of our members expressed increasing optimism for the future prospects of their businesses during the month of October as political pollsters began to predict the likelihood of the midterm elections producing a change in Congress to a more pro-business atmosphere,” said Timothy Farrell, president and CEO of the AHMA. “It is our hope that the new Congress will eliminate some of the uncertainty concerning the cost effects of federal legislation so that our industry can begin to invest in a more profitable future.”
The October Confidence Index survey asked two supplemental questions of AHMA members. Of the first, regarding the extension of the Bush tax cuts, 81% responded “Yes;” 12% responded “Not Sure;” and 7% responded “No.”
To the second question, regarding the Republican pledge to “repeal and replace” the Patient Protection and Affordable Care Act, 81% responded “Approve;” 17% responded “Not Sure;” and 2% responded “Disapprove.”
Rapid True Value launches chainwide remodel
One of three divisions of Hardware and Lumber, Rapid True Value plans on remodeling other units in partnership with Chicago-based True Value, according to the article. Consumers can expect at least two new products on the store shelves immediately: a premium paint called Painter’s Select, and a new laminated flooring system, Allure. Stores typically measure 6,000 sq. ft.
Rapid True Value’s parent company, GraceKennedy, is in the process of outsourcing its warehousing and distribution, the report said.
“The tenders are being evaluated now,” said Don Wehby, GraceKennedy group chief operating officer. “We have received four expressions of interest, all from local companies, and we expect a management company to be in place before the end of the financial year. We hope to see significant savings from adopting a similar approach to the outsourcing of this activity as with the management of our distribution center.”
In January, GraceKennedy outsourced the management of its $2 billion distribution center to U.S. transport and logistics company Landstar of Jacksonville, Fla.
Around the Web: Black Friday ads leaked
Highlights selected from the ad by WalletPop include Black & Decker cordless drill and bits at 50% off (after a mail-in rebate); a pop-up pet kennel and bed for $9.99 and $7.99, respectively; and tabletop games like air hockey and foosball are $17.99 each.
Other “spoiler” sites that have revealed: Ace’s promotional specials on the Friday after Thanksgiving include Black Friday 2010, which provides links and PDF files of Black Friday flyers for True Value, Harbor Freight, Sears. Kmart, Walmart and Target.