DISTRIBUTORS/CO-OPS

Orgill plans DC expansion

Kilgore distribution center will get even bigger in Texas.

BY HBSDealer Staff

Memphis, Tenn.-based Orgill, Inc. plans to expand its distribution center in Kilgore, Texas. The company will almost double the size of the existing facility to nearly a million square feet.

According to Vic Price, VP of distribution for the southwest region, construction is expected to begin in the third quarter, with completion by June 2019.

“We’re pleased to be in a position to make another major enhancement of our distribution network,” says Ron Beal, Orgill chairman, president and CEO. “The growth we’ve experienced in Texas and the surrounding states has made the expansion a necessity. Kilgore’s strategic location and the quality of the work force in Gregg County and the surrounding area make this an ideal location for an expanded facility

“We’re definitely happy about the growth that necessitated this expansion,” Price said. “This is good news, both for Orgill and for our local community.”

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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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