Grainger's Organic Sales Dip Further In October

Grainger's sales declines in Q3 continued into the first month of Q4, led by slight declines in price and sales of safety products.

Coming off a third quarter earnings report in mid-October that included considerable year-over-year sales and profit decreases, W.W. Grainger issued its monthly sales update on Thursday for October, which continued a downward trend.

Grainger – No. 3 on Industrial Distribution's 2015 Big 50 List – said that October total sales declined 1 percent compared to the same period last year, with organic sales down 2 percent. The overall 1 percent decline included 4 percentage points from its Sept. 1 acquisition of U.K.-based Cromwell Group, and a 3-point negative impact from currency headwinds. Excluding those two factors, the organic sales decline was driven by a 1-point decline in price and a 1-point decline in lower sales of safety products.

October had 22 selling days, one less than in 2014.

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By geographic segment, Grainger's year-over-year October sales decreased 3 percent in the U.S., decreased 25 percent in Canada (-13 percent in local currency), and increased 43 percent in Other Businesses (+18 percent organic).

For Grainger's U.S. customer end markets, it noted the following sales performances:

  • Retail was up in the mid-single digits
  • Light Manufacturing was flat
  • Government was down in the low single digits
  • Heavy Manufacturing, Commercial and Contractors were down in the mid-single digits
  • Resellers were down in the low double digits
  • Natural Resources was down in the low twenties

Grainger plans to report its November sales update on Friday, Dec. 11.


More on Grainger:

Report: Grainger Relocating Up To 60 Wisconsin Jobs (10/5)

Grainger COO Talks Company Outlook, Struggles & Successes In Friday Presentation (9/19)