Grainger — which on Monday announced that DG Macpherson will succeed Jim Ryan as company CEO on Oct. 1. — shared its sales performance for the month of July on Wednesday.
The company posted a 3 percent daily sales growth year-over-year, a solid gain after 1.2 percent growth in May and flat sales in June. July 2016 had two fewer selling days than in 2015.
Grainger's daily sales growth over the past 13 months are as follows
- July: ~3.0 percent
- June: +0.1 percent
- May: +1.2 percent
- April: +3.6 percent
- March: -1.1 percent
- February: +0.6 percent
- January: +4.3 percent
- December '15: -0.5 percent
- November '15: +2.5 percent
- October '15: -1.0 percent
- September '15: -0.2 percent
- August '15: -2.2 percent
- July '15: -1.1 percent
Grainger said the company's 2015 acquisition of Cromwell — completed last September — contributed 4 percentage points of growth to daily sales. Excluding Cromwell, July organic daily sales declined 1 percent, driven by flat volume and a 1 point decline in price.
Grainger's July U.S. daily sales declined 2 percent, driven by a 2-point decline in volume and 1-point decline in price, offset by a 1-point gain from intercompany sales to Zoro. Sales by end market were as follows:
- Government and Retail were up in the mid-single digits
- Light Manufacturing was up in the low single digits
- Commercial was down in the low single digits
- Heavy Manufacturing was down in the mid-single digits
- Contractors was down in the high single digits
- Resellers was down in the low double digits
- Natural Resources was down in the high teens
"While the disruption resulting from the realignment of our sales force still persists, sales to the Government end market, particularly to local government customers, bounced back sequentially after a relatively slow June," the company said. "In addition, Light Manufacturing posted positive sales growth rebounding from negative growth in June."
July was the sixth straight month of U.S. sales decline year-over-year. YOY U.S. daily sales have declined in 10 of the last 11 months. Grainger's U.S. daily sales per month in 2016 have been as follows:
- July: ~-2.0 percent
- June: -3.4 percent
- May: -2.9 percent
- April: -1.5 percent
- March: -4.6 percent
- February: -1.4 percent
- January: +0.9 percent
- December '15: -2.3 percent
- November '15: -4.8 percent
- October '15: -3.2 percent
- September '15: -1.9 percent
- August '15: +0.1 percent
- July '15: +1.0 percent
Grainger's July Canada daily sales declined 19 percent year-over-year and down 14 percent in local currency, driven by a 15-point decline in volume.
Grainger's July Other Businesses daily sales increased 56 percent in July, powered by a 30-point gain from Cromwell, 20 points from volume and price and a 6-point gain from foreign exchange.
Grainger posted a 2 percent year-over-year total sales gain in Q2 2016, which it reported July 19. Cromwell boosted total sales by 4 percent, while organic sales declined 2 percent.
Grainger said Thursday that August daily sales are currently trending better than July.
