Scouting Report July/August 2011

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An ALLPRO® Publication VOL. 21, ISSUE 4 JULY/AUGUST 2011

by: Joe Poliseo

ALL IN THE FAMILY – PART II In the previous issue we announced we would be relocating ALLPRO’s Corporate Headquarters in the fall, while at the same time opening our 2nd Distribution/ Fulfillment Center in Tampa, FL. The new center will allow us to serve members from Florida to Texas who are not currently served by our center in Massachusetts and who have very few choices for products sourced through two-step distribution. There are no ALLPRO member distributors that service the Southeast and Southwest markets, which should be the first choice and recommendation for our member’s distribution needs – keeping the business all in the family! The prior cover story was written in late April. Since then the landscape has changed dramatically with regard to distribution. ALLPRO’s negotiated supplier programs are now more important and valuable than ever. However, we recognize the need to purchase through distribution is necessary and wherever and whenever possible, we encourage ALLPRO members to purchase goods required from re-distribution through an ALLPRO member distributor. The reasoning is quite simple – purchasing through an ALLPRO member distributor ultimately strengthens the ALLPRO programs, influence, and market presence. Conversely, purchasing through another source that is outside of our network strengthens their programs. For this reason, it just makes sense to support a fellow ALLPRO member company. Again, members are highly encouraged to support ALLPRO’s regional distributors and ALLPRO Distribution Centers when in need of goods through re-distribution. Everyone in the group wins when you do. If you want information for the ALLPRO member company that serves re-distribution of product in your area (Northeast, mid-

Atlantic, upper Midwest or West Coast markets) please contact the ALLPRO office. We also encourage our approved suppliers to work with our distributor and dealer members alike to create the best possible programs. ALLPRO members continue to be the most reliable and financially sound companies in the paint & decorating products industry, as evidenced by recent industry reports. As mentioned in the News and Views section on page 8 of this issue, the Paint & Decorating Retailer’s “Pulse Report” showed modest sales gains for independent retailers in the first quarter of this year (0.3 percent U.S. and 0.2 percent in Canada). We are pleased to report that ALLPRO members are greatly outpacing this with purchases through the group up 3.5% through the same first quarter, and with a strong April and May, showing a 5.5% increase year-to-date. We are looking for this growth pattern to continue into the summer months. Whoever first said “Timing is everything” may be one of the smartest ever. The timing of a bit of an uptick (or at least a bottoming out) in today’s economy, coupled with ALLPRO’s member growth (272 companies, over 1,500 storefronts, ten companies that re-distribute to thousands of accounts) and the opening of a Southeast facility is all happening at the right time. ALLPRO and our membership are well positioned and poised for the challenges and opportunities that lie ahead. The timing for the Southeast facility is still on target, as the lease has been signed and build-out should commence in July. After we “settle in” during the late fall we would welcome a visit from all ALLPRO member and supplier personnel to see our new home.


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