At Orgill, president and CEO Boyden Moore sees relief for climbing costs through fewer price requests and supply chain improvements. Addressing dealers, vendors, employees, and the media as part of the group’s Fall Buying Event, Moore also introduced a change to next year’s dealer events.
“First of all, we are beginning to see sustained improvement in our supply chain recovery. Demand has moderated from the incredibly high levels that we experienced last year, and many of our vendors have improved their performance to us that has led to this sustained improvement,” Moore said in a video statement. “This has been our number 1 focus and will remain so until we are fully recovered to our traditional standards of service level over 96%. We expect to end the year above 85% and are working with vendors on plans to close the remaining gap during the first half of 2023.”
Another indication of economic stability ahead is the fact that there are fewer price changes from vendors. After experiencing the highest number of price changes in 2021, the company is now seeing much lower numbers of price change requests and within those even seeing some decreasing prices.
“We’re beginning to see inflation moderate broadly. The Consumer Price Index was up 8.5% over the prior year in July, which was lower than June’s 9.1% increase. We’ve seen some recent moderation in pricing on gas and we’re beginning to see some moderation on food as well. Most economists are expecting continued declines in the rate of inflation throughout the remainder of this year and a return to lower levels of inflation in 2023,” Moore said.
Moore shared an economic forecast from the Cleveland Research on PCE or Core Inflation.
“You can see that core inflation seems to have peaked in April and has moderated somewhat in May and June. They project continual moderating through the end of the year and 3.2% inflation in 2023.
“As consumers wrestle with today’s inflation environment, we are beginning to see more customers turn to private label options to save money throughout all areas of retail.”
While Orgill has grown 40% over the past two years, sales are up 10% year-to-date this year, Moore said, adding that this year’s rate of growth compares favorably to the industry numbers from the Census Bureau, which he said shows a 6.2% year-to-date growth in sales from building material and garden supply stores.
Orgill event changes
This year Orgill held its first hybrid in-person dealer market with an online buying event, including a 175th anniversary party at Universal Studios. The group added two online buying events this year so that there are now four quarterly opportunities for merchandise and promotional planning more closely associated with the times that dealers need the product, Moore said.
Next year, Orgill plans a similar schedule with one key difference:
- The Spring Dealer Market from February 9-11, in New Orleans will run concurrent with the Spring Online Buying Event which will run from February 6-19.
- The Summer Online Buying Event will be held May 8-21.
- The Fall Online Buying Event will be held July 31 – August 13 held in conjunction with the North American Hardware and Paint Association’s new Independents Conference, which will be held in Dallas from Aug. 2-3.
- And the Winter Online Buying Event is October 30 – November 11.
“We were very excited to learn about the NHPA’s new Independents Conference which will be held August 2-3 in Dallas. We are enthusiastically supporting and sponsoring this event, and have adjusted our Fall Online Buying Event dates to coincide with it,” Moore said. “We encourage you to attend with us and meet us in Dallas where we can work with you during the Online Buying Event while you network with our staff and your peers. Plus, in addition to the great NHPA programming, we will have some Orgill-specific exhibits and programming for our dealers that will complement their conference.”