Industry Updates: Home Center and Hardware Chains – February 2015
84 Lumber Company has named Phil Garuccio Divisional VP for covering the Central Division.
84 Lumber Company promoted Billy Ball to the post of VP Store Operations. Ball, a 25-year veteran of the company, most recently was the company’s Southeast Division VP.
Alexander Lumber’s Tom Hodgson, Exec VP of Operations, announced his retirement from Alexander Lumber after 23 years with the company and nearly five decades in the industry.
The Home Depot’s board of directors has officially elected CEO and President Craig Menear to the role of chairman. Mr. Menear succeeded Chairman Frank Blake, on Mr. Blake’s official retirement.
Pier 1 Imports, Inc. announced that company veteran Laura A. Coffey, has been named Exec VP and Interim CFO, effective immediately. She replaces Cary Turner, who has retired as Senior Exec VP and CFO of Pier 1 Imports. The company has commenced a search for a permanent replacement.
Rent-A-Center, Inc. announced results for the year ended December 31, 2014. Total annual revenues were $3.16 billion, up from an officially revised figure of $3.09 billion for the previous year.
Plum Creek Timber Company announced that full-year revenues were $1,476 million, up 10.1% from $1,340 million for the previous year.
The Sherwin-Williams Company Paint Stores Group, reported full-year consolidated net sales of a record $6.85 billion, up from $6.002 billion from the prior year.
Tile Shop Holdings, Inc. announced results for the year ended December 31, 2014. Net sales grew 12.0% to $257.2 million in 2014 compared with $229.6 million in 2013. Comparable store sales growth for 2014 was (0.4%) after growth of 12.4% in 2013.
Tractor Supply Company announced financial results for fiscal year ended December 27, 2014. For the full fiscal year, net sales increased 10.6% to $5.71 billion from $5.16 billion in fiscal 2013. Comparable store sales increased 3.8% versus a 4.8% increase in fiscal 2013.
Weyerhaeuser reported net sales from continuing operations for the full year 2014 were $7.4 billion, up from $7.3 billion.
Mergers and Acquisitions:
ABC Supply Co. acquired the assets of Siding World, a distributor of siding and other exterior building products including roofing, windows, doors, decking and gutters. The 40-year old Siding World has locations in 17 markets in Michigan, Indiana and Ohio.
PAL and ENAP, the lumber and building material buying cooperatives awaiting shareholder approval to complete their pending merger, have announced their new name: “LBM Advantage.” The merger is pursuant to shareholder approval.
Bomgaars Supply, Sioux City-based farm and home retailer, has stepped in to acquire several retail locations from the now defunct ALCO Stores, Inc. Bomgaars now owns the leases and fixtures of 12 former ALCO stores in four states. Of these, four are in Nebraska, where Bomgaars plans to relocate existing stores into a larger building of ALCO origins. These include stores in West Point, Ainsworth, Ogallala and Gordon. The other eight stores will be new locations for Bomgaars, including Rawlins, Lander, Pinedale and Diamondville in Wyoming; Preston and Soda Springs, Idaho; Chamberlain, South Dakota; and Imperial, Nebraska. ALCO declared bankruptcy last October and is currently liquidating its inventory. Bomgaars took possession in February, with the transformation due to take place over the following three to fourt months. Grand openings are currently slated for May or June.
Busy Beaver Building Centers, Inc. based in Pittsburgh will open its newest full-line home improvement center at the Marion Square shopping center in Fairmont, West Virginia. Scheduled to open by June, the Fairmont location is the 16th for the company and the second expansion under new owner and CEO Joseph Kallen.
Home Depot’s efforts to advance tech innovation in retail will be getting a big boost from the company’s latest initiative. The retailer has partnered with the Georgia Institute of Technology to create a cutting-edge research center, focused on advancing tech innovations, education and giving young talent an opportunity to grow. The new Home Depot Technology Center will allow the company to work with more than 40 start-up companies housed at Georgia Tech. Through this new facility, the company will collaborate with students at the Atlanta-based university in their cutting-edge research center. A select group of 20 students work alongside three Home Depot associates in the 6,500 square foot facility. The Home Depot Technology Center focuses on major areas for innovation, such as virtual reality, 3D printing and 3D scanning.
Orchard Supply Hardware has announced three new store openings in anticipation of the spring selling season. Orchard’s new Portland, Oregon; Irvine, California; and Cerritos, California stores will provide the basis for 300 new jobs.
The Tile Shop is making an even bigger mark in Tampa with the opening of two new retail showrooms. The Tile Shop expects further expansion in Florida, which will include a new location in Jacksonville and an Orlando location to open this spring.
Tractor Supply Company announced the opening of its 1,400th store. The store is located in Eunice, LA.