At the halfway point in its fiscal year, Do it Best announced that company net profit is up 10%, reaching $85. 3 million with $2. 5 billion in sales through December.
“We’ve made substantial progress in our investments to strengthen the engine that drives efficiency and increases sales, ” says president and CEO Dan Starr. “After two straight years of phenomenal sales and member growth, we’ve continued our momentum, adding 305 new members and beating our own aggressive growth plan by over 4%. These great bottom line results are due to a variety of initiatives the Do it Best team has been leading to ensure we’re always our members’ first and best choice. ”
In a letter to Do it Best member-owners, Starr recaps the particular company’s midyear performance plus highlighted a number of recent achievements in driving the business forward.
“As I’ve shared before, expanding member business is a cornerstone of our development. We approach this in several ways: helping members increase sales within their businesses, helping them open additional locations and attracting and adding more users to Do it Best, ” Starr says. “Through calendar year 2022 we onboarded a record number of new stores—305 to be exact. That number represents member acquisitions and new store expansions, as well as competitive conversions and those new to the industry as first-time owners. And that pace isn’t slowing. New member signings are already up 13% in addition to we’re continuing to support current member progress through our Gear Up 4 Growth initiatives. ”
Starr explains that through rebate advances, preference share redemption and even considerable incentives for major store improvement projects, Do it Best is helping members expand their businesses at a breakneck pace. To sustain that level of store growth, the company is continuing to make major investments in the infrastructure necessary to support shop owners’ needs.
“We’re on track to have our next-gen warehouse management system operating in all our facilities by this fall, along with our own new distributed order administration system and our streamlining of core financials. These generational investments are critical to support member growth today, as well as the new business we’re experiencing now and projecting for the future. Our team’s focus is in order to install these systems without interrupting the business plus our service to members, ” Starr says.
Do it Best also announced they are expanding capacity in their warehouse network, starting with their Woodburn, Oregon distribution center.
“We’ve already broken ground on what will ultimately increase space there simply by 50%, ” Starr says. “We’re committed to building and maintaining facilities, equipment and systems to support our members’ growth. The Woodburn expansion is an example of just one of the over $100 million in investments that are either in progress or planned to ensure we’re meeting owners’ needs now in addition to into the particular future. ”
Last spring Do it Best announced the major e-commerce initiative designed to put its members in an even stronger position in-store and online with fully integrated point-of-sale and customer convenience at the forefront.
“We’re embracing typically the shifts in consumer behavior by enhancing and expanding members’ ability to fulfill their own customers’ needs in-store and even online, ” Starr states. “And at this Spring Market in Orlando from March 11-13, we’ll be introducing the enhancements we’re making to drive more traffic from on the internet into Carry out it Ideal stores within record time. ”
Starr also stressed the importance of product acquisition together with assortments as drivers for growth.
“Our number one priority is ensuring each of our store owners have products to sell. Our team has worked closely with all of our vendor partners to improve your service level across all departments, including key categories in plumbing, tools, building materials, outdoor living and additionally lawn not to mention garden, ” he says. “Our merchandising and also sales teams have been bringing our users even more strategic product opportunities with Member Profit Generators from top vendors to be able to help drive even more sales inside all Get it done Best markets. Our people have responded, driving Category Solutions sales up 35% so far this year. That’s ensuring their particular assortments are current as well as relevant with regard to customers. ”
The company has also been developing relationships with new vendors and exploring new product lines. As an example, Do it Best recently announced an exclusive partnership with BFG, a respected lawn and garden leader. BFG offers Get it done Best members exclusive access to a new full catalog of lawn and garden products, from soils plus pest supervision to greenhouse systems, and offers brands that customers will know, like FoxFarm, JR Peters, and Michael Carr Designs.
Starr also acknowledged the challenge members have faced along with recruiting in addition to retaining great employees and even how the company has continued to strengthen their exclusive training programs.
“Thousands of our members possess signed up for Learning Zone, offering courses developed by Do it Best, this North American Hardware and Paint Association together with Sherwin-Williams Academy. Along with some of our Leadership Development Institute, we are also dedicated to building our LBM members’ knowledge to power up their product sales in 2023 with often the industry’s only LBM School, ” Starr says. “With the steady easing of the challenges to source store fixtures and components, our team has been able to surge forward to meet the pent up demand for new store design. Our industry award-winning Signature design program, partnered together with robust Retail Performance incentives, has helped more and additionally more associates attract new customers, expand their very own market share, and drive double digit growth. And this Best Rewards customer loyalty program gets even more powerful this year. We’ll have got more to share at our spring market. ”
Responding to member feedback, Do this Best moved its 2023 Spring Marketplace to Orlando, florida.
“Our group has powered up this market to make sure members’ period there is well spent, ” he says. “From outstanding deals to your Solutions in Action domestic plumbing, electrical, not to mention seasonal exhibit, as well as seminars and excellent networking events, our participants won’t want to miss this market. ”
“I like where we are usually in the midpoint, ” Starr says. “As you see and also hear everyday, there are a number associated with factors throughout flux that will could impact results, as well as we’re keeping our eyes on them. ”
Factors he noted include the overall state regarding increased inventory levels across manufacturing, wholesale and retail and the potential impact involving discounting because all parties work for you to pare inventories down. He also listed the economy, impacted by consumer confidence and inflation plus the expectation that the exact Federal Reserve will likely implement another rate hike to help try to calm inflation. Finally, this individual questioned whether consumers are ready to pull back on the spending that has fueled revenue growth over the past few years.
“While this particular may happen, we’re working with our customers to ensure they’re well-positioned to capture every last penny connected with what consumers are willing to spend, ” he says. “I’m bullish about what the second half holds for our members and Do it Greatest. Our team continues to sharpen our focus and deliver with excellence to help Conduct it Finest members push growth within their businesses now and around the coming year. ”