QUESTION
- Nice jump in Do it Best stores. I wonder why Kansas stores are the leaders? Btw, quick question now that do it best stores are coming on quickly, what needs to be done to get in the true value or ace stores? Now that you have a successful campaign with these stores, it should be relatively easy, no?
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ANSWER
The leading stores within any banner will change, as others come on board. Previously, the leading DIB store was in Ohio. At the moment, the top two are in Kansas. Even these good performers have a long way to go before they can be considered maxing out the potential of such outlets. These particular stores are not at a bottle per day yet – whereas some other banner stores are even higher than that. Realistically, we will do very nicely if the typical hardware/paint store sells even 2 bottles per week. That rate would make a Do it Best banner by itself approximately $1.8 million per year at the wholesale level. What we are seeking is that the performance of better stores within a group becomes the standard for others in the banner to emulate. That’s hard to achieve because in any group of individuals, there is always a range of performance. Over time we can create “systematic” conditions in the stores which foster desired outcomes. That could include use of counter displays, participation in a direct householder mail program, etc.
As far as Ace and True Value are concerned, and what needs to be done – we are now in a few independent outlets of both banners. The goal is to ensure that these stores do well with the product so that they can speak authentically about their own success. The national product managers of these banners will become increasingly aware of 1000+ through such internal channels, trade advertising, competitive monitoring and our own product presentations of course. All these factors eventually help make the case to them, as professional buyers, that the banner should offer the their own independent members access to 1000+ via the banner’s distribution centers. Until that point, we have to supply those stores directly, or through another distributor. Both Ace and True Value are similar in store count, with approximately 4,400 members each.
I personally would never use the word “easy” to describe the listing process with a national retail organization today. However, it is less arduous if a success is developing for you elsewhere in the industry. I hope I am accurate in saying that the retailers who are dealing with us now in the U.S. are enjoying the experience. That’s what they are telling us, anyway.
