Aubuchon Company solves for growth
Will Aubuchon has done the math.
The Aubuchon Company CEO is well aware of the low survival rate of most fourth generation companies. But speaking at the LBM CEO Summit, hosted jointly by HBSDealer and the Misura Group, Aubuchon shared insights on how his company overcame the odds, and how the Westminster, Massachusetts-based family company is solving another math-related problem — how to expand by a factor of three by 2033.
“You know, statistically, I shouldn't really even be standing here,” he told the audience of industry leaders assembled at the New York Athletic Club. He rolled out the stats—only about 3 percent of family businesses make it to the fourth generation or beyond. Aubuchon’s journey of growth has brought it to 127 locations in 10 states, at last count.
“I like to think a big part of our success is that we started strong,” Aubuchon said, referring to the first generation of Aubuchons—the brothers Willie, John and Arthur. “It was a generation that was known to be pioneering, ambitious and relentless in creating momentum right before the golden age of capitalism, which was a post-World War II era,” he said.
Plans are in place for what can easily be described as a golden age of expansion for Aubuchon, founded in 1908. The company believes it can grow threefold by 2033, the year that marks Aubuchon Company’s 125th anniversary.
Aubuchon to the core
Here's how the retailer describes its core values:
• Winning team mindset. Take care of each other.
• The Aubuchon difference. Go the extra mile.
• Communication. Listen, then get to the point.
• Innovate & Change. Be adaptable (And it’s OK to fail)
• Perseverance. Prepare and work hard.
• Integrity & Fairness. Do the right thing.
This ambitious goal hinges on three pillars: growing core operations including business-to-business and commercial sales; strategic acquisitions; and corporate culture. And as the company grows, leadership is focused on maintaining its core values, including integrity and fairness.
“The hopes and dreams of our company are not gonna get us there alone,” he said. “We need real execution, which reminds me of the famous and real truth of [management guru] Peter Drucker—‘Culture eats strategy for breakfast.’”
The CEO described the company’s 2023 conversion to the Oak Brook, Illinois-based Ace Hardware cooperative as an important springboard to growth. After years of competing with Ace stores, and after facing multiple acquisition roadblocks due to buying restrictions,
Aubuchon made the decision to turn to Ace, especially as it “unencumbered” Aubuchon for future acquisitions. Since joining the Oak Brook, Illinois-based coop, Aubuchon has acquired 18 more stores.
About two-thirds of Aubhuchon stores are planned to be co-branded as Ace Hardware stores, and a third are going to remain independent, he said. Independents will be served by Emery-Jensen. Aubuchon also plans to maintain a strategic partnership with Orgill as a strong secondary supplier for all of Aubuchon’s locations.
Meanwhile, leadership development is a top priority, inspired by Gallup’s research showing that 70% of employee engagement is driven by direct managers. The company is rolling out a servant leadership development program — PeopleThriver—to build strong leaders at all levels.
“As I think about the purpose of the fourth generation leadership, it’s really about extending the Aubuchon tradition in new and exciting ways by inspiring a whole new generation of leaders.”
