Do it Best hands out $116 million in rebates
Indianapolis — Do it Best distributed $116 million in dealer rebates during a fall market that also saw the election of a new group of directors. During the traditional CEO message to shareholders, Bob Taylor offered a “to do list” for hardware stores as well as a call for perseverance in the face of “one of the most challenging years in memory.”
Wholesale sales declined 5.6 percent to $2.65 billion in fiscal 2008, but Taylor pointed to an industry leading 2.13 percent overhead that helped pave the way to the third best net profit performance in the company’s history.
Voice picking in the distribution centers has led to 99.6 percent accuracy and a three-year return on investment, he said. He also pointed to a Product Information Management (PIM) program to improve visibility.
Taylor’s advice to dealers, and all companies faced with difficult times, ranged from a simple examination of objectives — and analysis of strengths, weaknesses, opportunities and threats — and managing cash flow.
In fiscal 2008, more than 135 new members joined Do it Best. One reason was its “rock solid financial foundation,” Taylor said.
“We’re absolutely going to be tested in the year ahead, and I can’t think of any better word than ‘perseverance’ as to what it’s going to take,” said Taylor. “And together, working with you to make the best even better, we will persevere.”
For the first time in 47 years, Don Wolf, the former president of the co-op, did not attend the market. According to Taylor, Wolf was receiving treatment for non-hodgkins lymphoma.
The market runs through Oct. 14.
Appeals court dismisses Home Depot classaction
Home Depot counted a victory in appellate court this week, following a decision by the 11th Circuit Court of Appeals to dismiss a two-year-old fraud class-action lawsuit.
The plaintiffs, all investors, had alleged that Home Depot executives were responsible for inflating its revenues artificially.
The primary plaintiff, the retirement board of Bucks County, Pa., alleged executives at Home Depot made misleading statements that improperly inflated financial results, and other violations under the Private Securities Litigation Reform Act of 1995.
The appellate court unanimously ruled that the class action did not meet the “stringent” requirements of the Reform Act.
Menards plans new store in Northern Illinois
Menards plans a new location in the town of New Lenox, Ill., part of a development that also features a Walmart store, a total 450,000-square-foot retail shopping center.
New Lenox, Ill. is located in the north central part of the state, just west of Joliet, Ill.
City officials welcomed the development at a recent groundbreaking event, saying it is a move that would help local economic development initiatives.
The Menards location is set to be a 240,000-square-foot “Mega Store.” Construction is expected to start on the site in spring of 2009, with an opening planned in 2010. Alongside that, a smaller 176,400-square-foot Wal-Mart Supercenter is planned.