How Grainger will get to 80% of revenue via e-commerce

Paul Demery

9 years ago

When it comes to market uncertainty caused by the COVID-19 pandemic, W.W. Grainger Inc. CEO D.G. Macpherson says he wants to be extra careful with the company’s financial position. Macpherson said announced Tuesday that Grainger has decided to draw down $1 billion from its unsecured revolving credit facility, bringing its cash on hand to approximately $1.5 billion. Macpherson emphasized that Grainger sees the borrowed funds to guard against further market disruption resulting from the spread of COVID-19, the disease caused by the novel coronavirus that has disrupted business operations in the United States and worldwide. A ‘proactive measure’ “Grainger’s financial position is strong,” Macpherson said in announcing the loan. “However, in an abundance of caution and as a proactive measure, we are taking prudent actions to increase our liquidity and financial flexibility. We remain committed to providing superior customer service and maintaining high-levels of inventory and to support our customers through this pandemic and beyond.” He added, “Our priority remains the health and safety of our team members and customers as we continue to navigate this uncertain period.” Grainger said its revolving credit facility allows it to borrow up to $1.25 billion, leaving it with $250 million still available. It said the principal balance of the loan is due on Feb. 14, 2025; Grainger added that it does “not have any material debit maturities prior to that date.” Grainger also noted in a filing with the U.S. Securities and Exchange Commission last week that it has the ability under its revolving credit facility to request an increase in its borrowing limit to $1.875 billion.

W.W. Grainger Inc., a distributor of business and industrial products, is on track to do more than three-quarters of its total sales through e-commerce, CEO D.G. Macpherson said this week. Macpherson, speaking to reporters at Grainger’s summit for customers and suppliers in Orlando, said the company has an ongoing program to improve how it serves […]