The company's January daily sales increased 4 percent from last year, which included a 4 percentage point contribution from its September acquisition of U.K.-based Cromwell, and a 2-point reduction from foreign exchange. Organic sales increased 2 percent, led by a 3-point increase in volume and a 2-point benefit from the holiday season, offset by 2-point decline in price. January 2016 had one fewer selling day than January 2015.
The 2 percent organic sales increase was an improvement from flat sales in December, and a 3 percent decrease in November.
In the U.S., Grainger's daily sales increased 1 percent year-over-year, including a 2 percentage point gain from the holidays, a 1-point increase from volume, and a 1-point increase from sales to its online channel Zoro, offset by a 2-point decline in price.
Here's how sales performed by U.S. customer end market in January:
- Government was up in the high single digits
- Light Manufacturing and Retail were up in the mid-single digits
- Commercial was up in the low single digits
- Contractors was down in the low single digits
- Heavy Manufacturing was down in the mid-single digits
- Resellers was down in the low double digits
- Natural Resources was down in the high teens
Grainger – which hosted its annual Grainger Show Feb. 8-10 in Orlando, FL – said the late January northeast snowstorm had no net effect on January sales.
Grainger January sales in Canada declined 23 percent in U.S. dollars, and increased by 56 percent in its Other Businesses segment. Other Businesses had a 34 percentage point gain from the Cromwell acquisition, and a 27-point gain from volume and price. Other Businesses had a 27 percent increase in daily sales, driven by e-commerce sales in the U.S. and Japan.
Grainger will report its February sales on March 11.