Retail Hardware Industry Transforms: Key Acquisitions, Revenue Growth, and Leadership Changes
Do it Best Finalizes True Value Acquisition
Do it Best has completed its acquisition of True Value, forming the world’s largest independent home improvement cooperative. True Value will operate as a subsidiary, ensuring a smooth transition for retailers. The acquisition brings key assets like inventory, brand rights, and manufacturing facilities, enhancing Do it Best’s ability to support independent stores. CEO Dan Starr called the deal a “generational opportunity” to strengthen the industry and drive growth. New leadership has been named to oversee integration. For the full story, see this article.
Webb Analytics: Winners/Losers in True Value Bankruptcy and Acquisition
True Value’s Chapter 11 bankruptcy and acquisition by Do it Best has winners and losers. Do it Best gains 4,000 members and $1.5 billion in buying power, while vendors and creditors face steep losses. The co-op movement, however, sees a potential resurgence as True Value returns to its cooperative roots. Read the full analysis on Webb Analytics.
Economic Trends Offer Opportunities for Independent Hardware Retailers
The Q3 2024 economic report highlights cautious consumer spending, cooling housing markets, and mixed retail results. Independent hardware stores can thrive by emphasizing personalized service, seasonal products, and localized strategies. Adapting to challenges like big-box competition and interest rate pressures will be key to navigating the changing landscape. See a full report here.
Ace Hardware Reports Record Q3 Revenue Amid Strategic Investments
Ace Hardware posted record third-quarter revenue of $2.4 billion, a 2.8 percent increase from 2023. Net income fell 23.8 percent to $99.0 million due to planned investments in digital marketing and supply chain enhancements. Wholesale revenue rose 2.7 percent, driven by grilling and power tool sales, while retail revenue grew 4.4 percent, supported by new store openings. Gross profit results were mixed, with wholesale margins slipping to 14.6 percent but retail margins improving to 46.6 percent. Operating expenses increased due to growth initiatives, and Ace added 150 new domestic locations, bringing its total to 5,093 stores. Ace remains focused on long-term success through strategic investments and customer-centric improvements. For the complete story, see this article.
Lim Joins Zircon Corp. as Chief Marketing Officer
Zircon Corp., a leader in measurement and detection solutions, has named Jennifer Lim as chief marketing officer. With more than 15 years of experience across startups and Fortune 500 companies, Lim will spearhead Zircon’s marketing strategy to strengthen its brand and market presence. Previously vice president of marketing at Moleaer Inc., Lim led initiatives resulting in 100 percent growth in website traffic and coverage in outlets like Forbes and TIME. Her career includes key roles at Hyundai, Beats by Dre, and Pelican Products, excelling in brand strategy, digital marketing, and e-commerce.
Houk Named VP of Store Operations at Ace Retail Holdings
Ace Retail Holdings has promoted Tony Houk to vice president of store operations, overseeing more than 250 locations, including Westlake and Great Lakes Ace Hardware stores. Houk, previously COO of Great Lakes Ace, has a proven track record of driving sales growth and improving efficiencies. “Tony’s leadership has been instrumental in our success,” said Joe Jeffries, CEO of Ace Retail Holdings.
Do it Best VP of IT Mergy Announces Retirement
After nearly 20 years with Do it Best, Vice President of Information Technology John Mergy has announced his retirement. Joining the cooperative in 2004, Mergy advanced through key leadership roles, culminating in his 2018 appointment as VP of IT. During his tenure, Mergy spearheaded critical initiatives, including a rapid WMS implementation, a new ecommerce platform launch, and seamlessly relocating the company’s headquarters. For more, read the Do it Best press release.
Westlake Ace Hardware Expands in Oklahoma City with New Store
Westlake Ace Hardware will open its 10th store in the Oklahoma City area at 17701 N. May Ave. Construction begins in early 2025, with a late 2025 opening planned. The 15,000-square-foot store will offer top brands like Milwaukee, DeWalt, and Stihl, alongside specialty services such as key cutting and propane exchange. “Our new location will deliver legendary service and trusted products,” said Joe Jeffries, CEO of Ace Retail Holdings. For more information, visit the Westlake Ace press release.
STIHL Appoints Azhar as Vice President of Sales
STIHL Inc. has named Asif Azhar as vice president of sales. Azhar will oversee U.S. sales strategies, focusing on revenue growth, dealer performance, and customer engagement. Azhar, previously with Trek Bicycle Corp., brings a proven track record of driving market growth and fostering dealer relationships. He will also lead omni-channel initiatives to expand STIHL’s market share. “Asif’s expertise in retail success and sales innovation will be invaluable as we grow our product offerings and strengthen our dealer network,” said STIHL CEO Chris Keffer.
Trex Names Dr. Anand Kangala as Chief Information Officer
Trex Company Inc., a leading manufacturer of wood-alternative decking, announced Dr. Anand Kangala as its new vice president and chief information officer. Dr. Kangala will lead global IT functions and drive Trex’s digital transformation strategy. Previously at Home Depot, he brings extensive expertise in business and technology innovation, and he will support Trex’s mission to optimize operations and meet rising consumer demands. For more information, see the Trex press release. (Photo: Business Wire)
