DISTRIBUTORS/CO-OPS

Orgill adds e-commerce partner

Localized inventory pricing is part of the Unilog package

BY HBSDealer Staff

E-commerce solution provider Unilog announced a new partnership with Memphis, Tenn.-based hardlines distributor Orgill. Orgill dealers will have shared access to both a new eCommerce website and product content subscription services, according to Unilog.

With annual sales exceeding $2 billion, Orgill distributes hardware and home improvement products to more than 6,000 hardware, home improvement, and building material retailers representing 15,000 locations worldwide.

“We are very excited about this new partnership with Unilog and our combined vision to provide a rich eCommerce solution integrated with our dealers’ in-store systems, providing localized inventory and pricing,” said Boyden Moore, Orgill GM of Retail. “This solution, combined with our unique shared data services model, provides an affordable, integrated omnichannel solution that will enable our independent, locally-branded dealers to build their brand online and compete more effectively. Unilog shares a passion with us to help independent small businesses be successful with their eCommerce strategy.”

The first website to go live under this new partnership was Town & Country Hardware, part of the Central Network Retail Group (CNRG).

In the release announcing the partnership, Phillip Helms, regional VP for CNRG said: “The site is allowing us to serve our customers by listing what we have in-store, and what we can be ordered from our suppliers, with our local pricing and availability.”

The partnership with Unilog will allow Orgill to provide a new digital catalog of more than 150,000 items with enhanced descriptions and content, according to Unilog. Dealers will be able to subscribe to this new digital content and display it on their website for informational purposes or for online sales.

“We’re proud to have partnered with Orgill on this initiative,” commented Suchit Bachalli, CEO of Unilog. “We believe our all-in-one solution is the perfect fit for Orgill’s independent dealers who require a cloud-based eCommerce platform without the need for in-house technical expertise or additional staff to support the initiative. And our content services will address Orgill’s desire for a more powerful digital catalog.”

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Ace Hardware reports Q2 growth

Among the metrics: record second quarter revenues

BY HBSDealer Staff

Oak Brook, Ill.-based Ace Hardware reported second quarter revenues of $1.6 billion, up 6.4% from the same quarter last year.

That Q2 record coincided with 3.3% increase in U.S. same-store sales, the co-op reported Wednesday morning. Net income increased 7.2% to $54.8 million.

CEO John Venhuizen said the co-op saw growth across all of Ace’s business units, with the biggest growth coming from its member dealers. “And I’m delighted with our 7.2% net income growth despite the expense pressures from our material investments in both our wholesale infrastructure and our digital expansion,” he said. “We successfully shipped our first order from our new 1.1 million sq. ft. Fredericksburg retail support center on June 4, and launched our new hyper-localized Acehardware.com website on July 30, which was up 34% in the second quarter.”

Ace added 39 new domestic stores in the second quarter of 2018 and cancelled 34 stores. The Company’s total domestic store count was 4,423 for the second quarter of 2018 which was an increase of 66 stores from the second quarter of 2017.  On a worldwide basis, Ace added 59 stores in the second quarter of 2018 and cancelled 35, bringing the worldwide store count to 5,161 at the end of the second quarter of 2018.

At Westlake Ace Hardware, described as Ace Retail Holdings in the earnings statement, revenue increased 21.6% to $109.8 million. The increase was fueled by new store growth, the co-op said.

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Ace prepares for ‘logistics revolution’

‘Retailers in Stores Eating Popcorn’ is screened in Chicago.

BY Ken Clark

Chicago – Retail success stories, plans for supply chain improvements and a spirited endorsement of the co-op hardware model highlighted the Ace Hardware General Session here during the co-op’s Fall Convention.

During the 90-minute presentation, a wide variety of Ace dealers were recognized for achieving growth and serving their communities. In a video segment titled “Retailers in Stores eating Popcorn,” Brett Seright, owner of Seright’s Ace in Post Falls, Idaho, described his store’s successful renovation. He pointed to 14% sales increase along with a 5% increase in customer count in 2017.

“if you’re not growing, you’re stagnating,” he said.

Also on the big screen, owners of Costello’s Ace Hardware of New York described the company culture as established by the founder Vince Costello: “We have a culture of growing and creating more opportunities,” said Michael Costello. “That’s very important for us.” His sister Jaimie added: “We love what we do.”

There was no shortage of these feel-good retail stories during the 90-minute session. They came from Sneade’s Ace Home Center, in Maryland; Ken’s Ace Hardware in Jackson, Mo.; and the story of Whitmore Ace Hardware in Wilmington, Ill., was the show stopper. Here a prom-dress drive honors the tragic death of a former teenage employee. The drive has grown over the years into a major community program supplying thousands of dresses – and professional styling – to girls in need.

“We have to remember it’s way bigger than just money,” said Ace CEO John Venhuizen, describing the role of Ace nation in general. “We’ve got to make distinctive impacts in the communities we serve.”

John Venhuizen

The co-op pointed out that more than 400 stores converted and joined the Ace family over the last seven years. These stores have generated more than $1.3 billion and nearly $2.5 billion at retail.

The event was punctuated with a surprise performance from musical star Rachel Platten to close the curtain.

Ace executives also addressed challenges – specifically, the disappointing supply chain performance during the recent high-demand spring selling season. “For several areas of the country our supply chain hasn’t lived up to our high expectations,” said Venhuizen.

The problem was fueled by several factors, and Executive VP and Chief Supply Chain Officer Lori Bossman described them: rapid growth, an unprecedented surge in demand that accompanied a late spring, a shortage of truckers, and high turnovers in distribution centers magnified by very low unemployment across the country.

In response, Ace added $150 million in inventory to its retail support centers. It also established new rules that penalize vendors for late shipments – these rules have led to 10% improvement in on-time shipments. In its DCs, Ace has addressed turnover with retention bonuses. An expansion of its Ohio facility has been moved up a year.

Within the next two months, the co-op will launch an Uber-like tool called “Where’s my truck,” an app that shows retailers the location of delivery trucks.

Striving to be the best wholesaler, and investing for the long-haul were major themes of Venhuizen’s presentation. “We will not think quarters,” he said, referring to investment strategy. “We will think quarter centuries.”

Areas receiving investment include digital marketing (“moving from mailers to mobile,”); The Supply Place B2B business; and the distributor’s supply chain.

By the second quarter of 2019, Ace intends to realize in 70% of the country what it calls a “Logistics Revolution” to make Ace “faster than Amazon” on the 100,000 items Ace stocks.

Venhuizen also carried the flag of the co-op model into the general session, pointing to the track record of growth, and embracing the benefits of collective ownership for Ace members. Since 2002, Ace Corp. sales increased from $3.4 billion to $5.7 billion. And Ace Corp. net project increased from $77 million to $155 million, delivering more than 30% return on equity for Ace shareholders.

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