Both online and offline, the second fiscal quarter was good but not great for W.W. Grainger Inc., the biggest public distribution company.
For the second quarter ended June 30, Grainger posted sales of $4.31 billion. That’s, up 3.1% from sales of $4.18 billion in the prior year’s Q2. Net earnings were $490 million, the same as in the second quarter of 2023.
Grainger is a prominent distributor of maintenance, repair and operations (MRO) products that businesses need to operate their facilities.
Grainger online sales in Q2 2024
Grainger’s web-only Endless Assortment business — which Zoro.com and Japan-based MonotaRo.com comprise — posted a sales increase to $776 million in Q2 2024. That’s up 3.3% from $751 million in Q2 2023.
By comparison, Grainger’s High-Touch Solutions segment — which includes the full-service sales through Grainger.com and the company’s sales team — grew to $3.45 billion. That’s up 3.1% from $3.35 billion in Q2 2023.
A big priority for Grainger in the quarters ahead is focusing on making its user experience and purchasing easier for customers, CEO D.G. Macpherson told analysts on an earnings call.
“One of the best examples of the value that we create for our customers is by simplifying their purchasing processes,” he said. “Complicated and high-cost purchasing processes are common in our space, wasting our customers’ time and money. Fortunately, we are well-equipped to help customers solve this challenge by assisting them in choosing the right digital solution, setting up necessary workflows and approvals, and providing systems training to maximize the benefits.”
Going forward, Grainger will also focus on generating more digital sales from its small to medium-sized business customers.
“We think there is a long runway ahead. We believe that the digital capabilities we have built and the customer and product information assets we built help us with midsized customers significantly,” Macpherson said. “And so really, we think it’s what we’re doing to build relationships with them through digital capabilities, a lot of those customers when you look at how they buy, start digital and that’s their main channel.”
Check back for more earnings reports. Here’s last quarter’s update on W.W. Grainger.
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