KC_Supply_Case_Study

Orgill Case Study | 1 Located in the rural community of Blanco, Texas, K&C Supply was purchased in January 2021 by Jim and Dana Bundick. Jim had a background working in the home improvement industry, and the couple had been looking to purchase their own retail operation for a number of years. They had even purchased fixtures and products and registered the name Outlaw Lumber before finding a property. After brokering the deal to buy K&C Supply, the Bundicks set in motion a plan to expand the store’s product offering. Prior to the Bundicks’ purchase, K&C Supply was known as a feed store that also sold some lumber, pipe, fencing, trailer supplies and a small selection of hardware items from its 5,000-square-foot salesfloor, drive-through lumberyard and outdoor storage areas. After taking ownership, the couple added additional inventory and fixtures they previously purchased. This immediately expanded K&C Supply’s offering to be more reflective of a traditional hardware store. However, because the products, fixtures and layout were cobbled together from existing merchandisers, the store was left with what Jim described as a “hodgepodge” of assortments and products. The store’s legacy supplier was Texas-based Buttery Hardware. However, Jim had worked with Orgill in his previous positions, so he knew the Collierville, Tennessee-based distributor well. After establishing a relationship with Orgill as K&C Supply’s primary supplier, the Bundicks enlisted Orgill’s Business Development team to identify how to broaden their assortments, take advantage of additional opportunities in the market and improve their merchandise presentation. K&C Supply’s Orgill Business Development Manager Mike Musselman worked together with Orgill Retail Development Manager Mike Barker to come up with a plan for the store. After examining the store’s assortments and presentation, Barker decided that Orgill’s Smart Start programwould be the ideal way to achieve what the Bundicks were hoping for. The Bundicks also worked with Barker and Orgill’s internal point-of-sale data team. Together, they developed a plan that would ultimately include the implementation of more than 25 Smart Start assortments representing more than 100 linear feet of product resets. Additionally, they added 30 linear feet of resets within the power tool accessories area that Orgill facilitated directly with the manufacturer. The Smart Start program allowed K&C Supply to augment their assortments and clean up their merchandise presentation. Plus, the Smart Start merchandise buyback credits helped offset costs for newmerchandise and labor to implement the reset. Shortly after first meeting with the owners, Orgill teams came in to complete the store's product lifts, retags and resets. The entire onsite process was done within five days. The results were immediate. The Bundicks say that they have sold more product to existing customers than ever before, and customers who'd never shopped in their store are coming in to browse their expanded assortments. Overall, they said the entire process was an unqualified success for them and they would highly recommend that other retailers explore their options with Orgill. Executive Summary

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