Michael Beaudoin, Executive Vice President, ALLPRO
In the 2024 Market Measure Report, published by the North American Hardware and Paint Association (NHPA), industry partners shared their insights on operations in 2023 and their goals for 2024.
Read the update from ALLPRO‘s Michael Beaudoin below and download the complete report from NHPA here.
How did business change for ALLPRO in 2023 compared to 2022?
Business was much more stable as it relates to pricing and product availability than 2022 where there were numerous price increases and lingering product shortages. What challenged our numbers this year was that our members were still working off inventory from the previous year when they took advantage of pre-price increase purchasing as well as competing for scarce products. In addition, this year saw the demand soften with increases in supply by competition and a slowing demand. Throw in a tremendous amount of rain in both the Northeast and the West, all made for a more challenging year as it relates to sales. The good news is that 2023 will serve as a much better benchmark to gauge future growth.
What were some challenges in 2023 and how did ALLPRO address them?
The challenge this year was helping our members understand that we are in a new “season” of the economy and switching gears quickly from an aggressive purchasing posture to ensure product availability to more of a “run your business” in a much more disciplined fashion. That entails monitoring your P&L, making smart purchasing decisions and investing capital only where it makes sense. There is also a new variable to consider, which is money in the bank now makes money for the first time in over a decade. This will mean that the deals will have to be better before members invest and purchase larger orders. Having two large shows that bring members together allowed them to collaborate and help each other as we navigate this new cycle.
What are some critical areas of focus for ALLPRO going into 2024? What is the anticipated impact or benefit for your members?
We are going to switch our investments from building out our distribution business and start investing heavily in driving the demand for the ALLPRO Brand for sundries and an identity for an ALLPRO member. This will continue the evolution of making the ALLPRO Brand more dominant within the group, helping our members’ profitability and creating a unique experience not found in the national chains. In addition, we are also bringing members together in a roundtable networking format to continue to expand their relationships within the group that they can rely on to help navigate the future. We have two meetings scheduled in May, with one in Las Vegas and the other in Chicago. This is in addition to our investments in both our spring show in Orlando and fall show in Austin, which continue to grow.
What are your projections for 2024 for the home improvement industry at large and the independent channel specifically?
I am budgeting for modest growth in 2024 of around 3%. I understand that there are challenges in the housing industry as well as softening demand in many other areas, but with better weather and a full year to make changes in your business, the members will find new opportunities and find a way to win. I was very proud of the energy they brought to our shows in 2023, and there was still a sense of excitement and optimism. The strength of our model, which consists of entrepreneur owners with many of them being multigenerational, is that they have seen everything and nothing rattles them.
“I was very proud of the energy they brought to our shows in 2023, and there was still a sense of excitement and optimism.”
