BUILDING SUPPLIERS SEE BEST QUARTER IN ALMOST A DECADE

Amid reports from the Commerce Department that housing starts in March were up 14.2% from last year, paint, drywall and other building suppliers are seeing an uptick in sales. Sherwin Williams reported on their investor call forecast-beating first quarter profits. They reported an 11% increase in sales revenue from its stores and a 44% improvement in profit.

USG Corp., manufacturers of drywall and ceiling tiles, reported the “best quarter we’ve had in almost a decade”. Sales increased 7% to $970 million.

Great weather is attributed to work on homes starting earlier in the year than usual. Illinois Tool Works Inc., supplier of screws, fasteners, nail guns and other items improved its operating margin to 21% from 17% last year. Says CEO Scott Santi, “We certainly exited the quarter in pretty good shape. We’re not seeing anything slow down.”

Building materials, garden equipment and supply dealers show estimated sales increases of 11.9% over Q1 2015. Analysts are predicting that Home Depot and Lowe’s may post stronger than expected sales for their quarters ending April 2016.

Source: Wall St Journal, Seeking Alpha

Walmart COO Discusses Collaboration and Strategy with Over 400 Suppliers

Walmart COO Judith McKenna met with more than 400 suppliers last Friday to discuss her priorities for the retailer’s domestic business. The event was held at the Sam’s Club home office, the day after Walmart opened 33 Neighborhood Markets.

Key takeaways were simplification, best practice sharing, supply chain opportunities and small format growth.  McKenna mentioned several times throughout her speech the importance of simplification and the need for closer collaboration between merchants and operators at Walmart, using the phrase “Better Together”.

By “simplification”, Walmart means a fundamental concept of being an every day low cost operator by improving execution, reducing costs and improving sales. McKenna oversaw supply chain in the U.K., where E-commerce is more advanced than in the U.S. She views increased integration of digital and physical as a major opportunity. “We have work to do on the store experience and customer experience,” McKenna said.

McKenna has been visiting a lot of store to identify opportunities that will drive simplification.

“We want to grow and grow with you,” McKenna said, which hit home with the suppliers in attendance.

Source: Retailing Today