Do it Best: ’United’ for growth
HOUSTON, TEXAS —Data and growth, growth and data. Those were the interconnected themes built into the message delivered by Do it Best leaders here at the co-op’s dealer market.
New analytics tools introduced here in Houston fall into the data category. And the company’s plan to acquire United Hardware, the Minnesota-based co-op, factored heavily in the discussion of growth.
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Scene from the market floor. -
The George R. Brown Convention Center in Houston. -
Do it Best offered merchandising ideas in its Solutions in Action area. -
Do it Best announced a new initiative to stock Paslode products.
With United Hardware and its Hardware Hank branded stores, Do it Best will grow its membership by more than 700 locations — a 20 percent increase in membership, said Dent Johnson, Do it Best’s executive vice president of operations. It will also add a warehouse in Milbank, South Dakota, bringing with it critical distribution capacity, he said.
“With this merger, we are planting the flag to signal our aggressive growth mindset, whether that's being through acquisition or otherwise,” Johnson said.
While the company’s fiscal year runs through June, its sales in excess of $3 billion are running behind the pace of a year ago, due to reasons often cited around the industry: an uncooperative winter, high interest rates and commodity price deflation. But Johnson said the co-op expects to deliver its third-highest member rebate in company history.
The theme of the Houston event, which runs through March 25, is “Leveraging Data for Success.” And in keeping with the theme, the company unveiled two new new, technology-based tools to drive member growth: Tracula and an IPA tool.
- Tracula is a precision-focused inventory tracking system that’s specially designed for Do it Best members. It uses point-of-sale data and a sophisticated algorithm to select SKUs based on critical factors, and to ensure purposeful and impactful cycle counting, making every count matter.
- The IPA tool visually and intuitively identifies performing and underperforming areas of retailer stores and proactively offers customized action plans for improvement—driving efficiencies and sales. It transforms slow-moving inventory into an opportunity for strategic assortment, ensuring that every product on the shelf has a purpose.
“We are evolving into a technology company company that happens to specialize in the distribution of hard lines in building materials,” said Nick Talarico, executive vice president of sales and marketing. “And we're leveraging data to unlock opportunities that will shape our combined future.”
Another growth area is e-commerce. And the co-op pointed to 1,900 stores participating in its e-commerce platform, introduced a year ago and launched in early September.
“Our e-commerce platform is the ultimate example of using data to make decisions,” said Allison Flatjord, vice president of marketing and ecommerce. She said the co-op offers a product information management system that has more than 1.6 million items. “Combine that product data with customer data and AI, and you have a very powerful tool.”
On the vendor front, Do it Best announced a new initiative to stock Paslode products in their warehouses. Paslode is a leading manufacturer of cordless and pneumatic nailers, staplers, and fasteners. This follows the success of last year's exclusive partnership with BFG Supply Co., which gave members exclusive access to a comprehensive catalog of lawn and garden products
What will happen to Hardware Hank?
Sometimes in the course of mergers or acquisitions, a brand or a logo will disappear or be replaced. That’s not going to be the case with Hardware Hank, United Hardware’s retail brand, personified by a friendly cartoon character, (sometimes seen with Hardware Hannah).
Hardware Hank operators will make their own branding decisons, said Nick Talarico.
“What Do it Best does really well is let independents be themselves,” Talarico said. “What [retailers] liked about United is what they like about Do it Best.”
Special guest appearance by A Houston hero
As a special highlight, former President George W. Bush will deliver an exclusive session for Do it Best members, sharing his insights on leadership, succession planning, and his belief that independent business is the backbone of America.
