Even after the challenging fiscal year that ended June 29, when sales dropped 4%, Do it Best Corp. touted that it still posted $4.6 billion in sales and returned $159.1 million in dividends to its members, the second-largest rebate in the member-owned buying cooperative’s 80-year history.
Dan Starr, president and CEO, Do it Best Corp.
And CEO Dan Starr promised many more good things to come in the way of diversified investments in technology and operations. Among them: “AI-driven ecommerce enhancements like improved search and personalization have boosted customer engagement and overall sales for our members. Our website upgrades, including a rental module, instant rebates, and Best Rewards integration, are providing more personalized experiences for customers.”
Do it Best eyes 8,000 store network with True Value deal
Now, Starr is eyeing the next strategic milestone not only for his Fort Wayne, Indiana-based company but also “for home improvement retailers around the world”: a pending agreement to acquire “substantially all” the operations of hardware and home improvement rival True Value Co. L.L.C., a Chicago-based hardlines wholesaler for more than 4,500 independently owned retail stores operating under the True Value brand. If completed, the deal would result in a store network exceeding 8,000 locations across the United States and more than 50 countries, Do it Best says.
Do It Best, which operates an ecommerce site for its member stores at doitbest.com, is No. 419 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers.
True Value, a retail brand with roots going back to 1932, says it operates 13 regional distribution centers and employs approximately 2,500 True Value associates. True Value lets visitors to TrueValue.com link to ecommerce sites of their preferred member stores connected to a True Value online shopping platform, such as one for Harolds True Value Hardware in Evanston, Illinois.
True Value has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Cour for the District of Delaware. True Value said it will continue to operate under Chapter 11 protection and that Do it Best will provide a “stalking horse” or lead bid in “a competitive bidding process under Section 363 of the Bankruptcy Code designed to achieve the highest or otherwise best value” for True Value.
True Value said that if Do it Best is the winning bidder, the transaction is expected to close by the end of the year, pending regulatory and court approval.
“After a thorough evaluation of strategic alternatives, we determined that the sale of our business was the path forward to maximize value and best serve our retail partners and other stakeholders into the future,” said Chris Kempa, True Value’s CEO. “We believe that entering the process with an agreed offer from Do it Best, who has a similar decades-long history in the home improvement space and also operates with a focus on supporting members and helping them grow, is the most beneficial next step for True Value and our associates, customers, and vendor partners.”
Do it Best builds out digital technology
Earlier this year, Do it Best merged with Maple Grove, Minnesota-based United Hardware Distributing Co., a wholesale hardware distributor with more than 700 stores in the Midwest. Starr said that deal expanded Do it Best’s membership by “over 20% and added a ninth distribution center in the Great Plains, reinforcing our growth strategy and improving our buying power.”
In March, Do it Best named Allison Flatjord as the company’s vice president of marketing and ecommerce. Flatjord joined Do it Best in 2022 as director of ecommerce shortly after the launch of the new Ecommerce division and was eventually promoted to vice president of ecommerce.
In August, Do it Best expanded its ecommerce offerings, including 1,500 lumber items offered online.
The company has invested more than $100 million in digital technology upgrades over the past two years, including new warehouse management and order management systems and a new ecommerce platform.
“Our enhanced enterprise resource planning (ERP) system will significantly improve data flow, streamline operations, and enhance efficiency for our members,” Starr said in a statement regarding the company’s financial report for the 2024 fiscal year.
Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.
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