MRO: More Retailers Onboard
Whether it comes under the label of “Industrial Commercial” or “Maintenance Repair and Operations,” specialized commercial accounts are emerging as a growth area for traditional hardware stores.
Hardware distributors have recently upgraded, embraced or otherwise promoted the opportunities in reaching out to hospitals, businesses and military bases, to name just a few.
Do it Best Corp. recently added resources to support InCom Distributor Supply, its industrial and commercial supply division, a sign of the business’ sustained growth and strategic importance to the co-op.
Over the last three years, Tom Barfell has led the InCom and International Sales departments, helping drive significant growth in both areas. That rapid growth led to the development of a separate InCom team. Barfell will continue to lead the International Sales team.
Do it Best named co-op veteran Jared Hufford as the new manager of InCom. ”It’s clearly evident that InCom is an area with even more opportunity for member growth and expansion,” said Bob Taylor, president and CEO of Do it Best. “Our No. 1 goal is to help our members grow, and we believe the additional focus and resources here will help us take full advantage of the opportunities for both International and InCom.”
The InCom team will also be better positioned to more fully leverage growth opportunities in areas like e-tailing, facilities management and retail integration, the co-op said.
True Value describes its MRO program as a profitable, turnkey growth center that benefits from a growing national network of independent commercial industrial distributors. Some 60,000 industrial products are delivered through its 12 distribution centers.
True Value says it currently has more than 400 stores enrolled in its MRO program, and that MRO represents a $300,000 opportunity for dealers, without consuming valuable retail space. Promotional literature distributed by True Value suggests “it’s not unusual to see an increase in sales of $30K to $100K per month, with gross margins of 28% to 30%.”
Earlier this year in Chicago, Orgill gave special emphasis during its dealer market to an MRO “showcase” area.