AD Boosts Rebates Despite Sales Decline

Same-store sales across all AD divisions and countries were down 13 percent in Q2, but the group was able to raise rebate distributions to members.

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Mike Hockett/Industrial Distribution

WAYNE, PA β€” On a same-store basis, member sales across all AD’s divisions and countries were down 6 percent through the first six months of this year, to $21.6 billion, driven by a 13 percent decline in Q2. By business unit, six-month Plumbing, Heating, Cooling and Piping same-store sales were down 4 percent; Electrical sales were down 6 percent; Building Materials sales were down 6 percent; and Industrial and Safety sales were down 7 percent.

Group purchases from AD suppliers were down 2 percent. Net rebate distributions to members grew 1 percent.  

Six Month Imageβ€œThe strength of the independent business model β€” locally run, fiercely self-sufficient and agile β€” shines through in times like these, as does the effectiveness of collaboration and information sharing within our tight-knit community," said Bill Weisberg, AD CEO. "Our community intends to not only recover but grow.” 

"The AD team continues to be immersed in activities centered on helping our members and suppliers navigate this environment while prudently managing expenses," added Ted Simpson, AD senior vice president of marketing. "Programs and initiatives like message boards, AD Rewards, Frontline Business Intelligence reports, More Time to Pay, AD Education Center, and networks were either newly created or adjusted to accommodate current operating dynamics.”

AD is the largest contractor and industrial products wholesale buying group in North America. A member-owned group, AD provides independent distributors and manufacturers of construction and industrial products with support and resources that accelerate growth. AD's 800-plus independent member-owners span 12 divisions in the US, Mexico and Canada with annual sales exceeding $46 billion. AD’s 12 divisions cover industries including electrical, industrial, safety, bearings and power transmission, plumbing, PVF, HVAC, decorative brands and building materials. For more information, visit www.adhq.com.

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