At the Fall Market, Do it Best Hands Off Historic Profits, Rebates to Members

With the theme “Growth Mode: Activated,” the Do it Best Fall Market at the Indiana Convention Center in Indianapolis, September 6-9, featured more than 100,000 products, including 3,300 new items and more than 120 new vendors.

The co-op announced to shareholders a record-breaking $352.6 million in gross profit for fiscal year 2024, despite a 4 percent year-over-year decline in sales. Total sales reached nearly $4.6 billion, and during remarks to shareholders, President and CEO Dan Starr said the cooperative demonstrated resilience and strong profitability amid challenging economic conditions.

Starr shared the news with member-owners by likening the company’s journey to running an Olympic relay, saying that every leg of the race is crucial to maintain momentum and reach the finish line successfully. The challenging market environment was marked by decreased demand and heightened competition, yet Do it Best’s performance was in line with the overall home improvement market, which declined by 1.8 percent during the same period, Starr said.

One of the key highlights of the fiscal year was the substantial return to member-owners. During the Shareholders Meeting on September 8, the cooperative announced $159 million in rebates to its members, marking the second-highest dividend payout in the co-op’s history. Following the conclusion of the Do it Best Shareholders Meeting, approximately $116 million in rebate checks were distributed to member-owners.

In addition to the financial returns, featured graphics illustrated Do it Best’s capital investments over the past decade, along with illustrations of the co-op’s 20 percent membership growth and net profit growth since 2014.

“If you look beyond this past year from 10 years ago to where we are today, you’ll see that our investments for the future are growing, that our membership is growing, and that even as we invest in the future, our profit is growing,” Starr said.

Despite facing a tough economic environment, Starr expressed optimism for the future, stressing that the cooperative’s strong financial position and continued investment in its members will keep it competitive in the home improvement sector, like passing the baton smoothly in an Olympic race.

As part of the annual Do it Best Shareholders Meeting, the co-op added three first-term members to its board of directors, including Jason Blair, CEO of TAL Holdings; Sharona Eiserer, co-owner and president of Wood Shed Lumber & Hardware Supply; and Scott Sommers, president of Hartville Hardware. The shareholders also affirmed the third term of Joe Taylor, who serves as chairman of the Do it Best board and is president and CEO of Taylor’s Do it Center.

First Market with United Hardware Members

The 2024 Do it Best Fall Market was also the first show to welcome United Hardware members after the two co-ops merged in a deal that was announced in March and finalized this past April. The merger combined the companies’ resources to enhance scale, efficiency, and innovation for the benefit of member-owners, employees, and customers. United Hardware was composed of 700 stores across 16 states.

Eric Nelson, president of Fergus Home & Hardware, Fergus Falls, Minn., and a United Hardware member attending his first Do it Best market, said he was impressed with the size of the market and variety of vendor options.

“This is a much bigger market, and we’re able to look at product lines in more depth to make sure we’re giving our customers a consistent, deep selection,” Nelson said. “We found a few things we’re adding, for example carpet cleaning and rental machines.”

Attendees Value New Products, Education Opportunities

During the three days of the Do it Best 2024 Fall Market, the floor was lively, and signs indicated dozens of new vendors throughout the aisles.

“My favorite thing while coming to the Do it Best shows is seeing the newer things,” says Mary Camp of Bay Hay and Feed in Bainbridge, Wash., “I find things that I would never have found otherwise.

Camp says that being able to physically see and touch new products helps in the buying decision process. “You can see which product is a better value,” said Camp, who plans to add a refillable propane tank to the store’s product mix based on seeing it at the market.

For others, the Do it Best Fall Market was an entirely new experience.

“This is my first show, and it’s been a very good experience,” said Lyle Sienkiewicz of Florence Hardware, Florence, Mass., who is in the process of taking over store management from his parents. “I’ve made a lot of good connections.”

Sienkiewicz said he also found several products that he didn’t realize were stocked in the Do it Best warehouse. “That’s been a huge perk, just learning what’s available,” he said. “The biggest takeaway has been from the Solutions in Action area. The most impressive thing is the size of the market, the amount of vendors along with the support from Do it Best throughout the whole process.”

The 13,000-square-foot Solutions in Action exhibit showed how retailers can develop departments such as farm and ranch. “This is a critical category for retailers serving rural communities where these products are essential for daily life and work,” said Vice President of Merchandising Jason Stofleth. “With an unmatched breadth and depth of farm and ranch products, we’re committed to equipping our members with everything they need to meet their customers’ diverse demands.”

LBM Opportunities Emphasized during Market

During the 2024 Fall Market in Indianapolis, there was a pronounced emphasis on opportunities within the marketplace for lumber and building materials.

The market hosted an LBM Industry Update, which provided the latest insights on industry trends, challenges, and opportunities. Do it Best included LBM-related information sessions with LBM-related buying opportunities include The Vault, Pallet Specials, and LBM Super Specials.

Do it Best Leadership Shares Updates, Vision for Future

During the Market Kick-off on Friday, Sept. 6, Do it Best leaders provided updates on company initiatives, shared thoughts about the current economic climate, and offered a look at the future of the company.

Greg Fuller, vice president of sales and business development, acknowledged the current challenging sales environment, pointing to economic pressures like rising interest rates and shifting consumer behavior. He emphasized that while these factors impact foot traffic and demand, they offer opportunities for innovation. “By offering the right products at the right price, we can continue to directly address the consumers’ immediate needs,” he said. Fuller also highlighted the PriceBusters program, designed to give stores a competitive edge through low-cost, high-value products, supported by comprehensive in-store and digital promotional efforts.

Stofleth emphasized the importance of data-driven pricing, highlighting that Do it Best closely monitors more than 20 data sources to stay ahead of market trends. He said that in the past year, Do it Best’s proactive actions led to $22 million in savings through price reductions on over 16,000 SKUs. “This is data combined with quick action to drive real savings for you,” Stofleth said. He also noted that flexibility in pricing allows stores to adjust according to local conditions, enhancing margins in a competitive environment. Allison Flatjord, vice president of marketing and ecommerce, discussed Do it Best’s shift toward real-world marketing tests in collaboration with member stores. Through initiatives such as a “marketing lab,” four stores tested strategies, including loyalty program-driven emails that boosted conversions by four times, and expanding online inventory, which led to a 250 percent increase in e-commerce sales. “We’re so serious about testing and data,” Flatjord stated, highlighting that these efforts drive real results. She emphasized that communicating these findings helps all members grow sales through data-driven innovation.