Orgill Case Study | 7 Even prior to the closing of CNRG’s acquisition of Germantown Hardware in June of 2020, the Orgill team had already begun creating an “immediate improvement” plan for the business that would focus on what could be done over the short term to make the business more viable and quickly enhance its productivity and update the presentation to customers. This is where the team overseeing the project could marshal their resources and find ways to quickly make a dramatic impact on the operation. The Orgill team developing the initial plan for improvement included representatives from Orgill, Tyndale Advisors and CNRG. Among those taking an initial look at the operation were Sieggreen; Raymond White, senior vice president of operations at CNRG; Chase Holmes, vice president of operations at CNRG/ Home Hardware Centers; and Phillip Helms, the former senior vice president of merchandising services at CNRG/Home Hardware Centers. “I consider myself a lucky individual in these kinds of situations,” White says. “Our teams are exposed to so many businesses out here as opposed to an individual who is immersed in one store and they don’t get to measure that against what is taking place outside their four walls. When we step into a store, we see things a lot differently because of the perspective we have. Immediately, we can see if it needs to be improved or cleaned up.” At Germantown Hardware, this immediate list included changes to the store’s: • Inventory • Brands/assortments • Pricing • Physical layout • Personnel Project Scope at a Glance Physical Expansion • Sales Floor Square Footage (14,694 to 23,220) +58% • Sales Floor Linear Footage (1,824 to 2,608) +43% • Shop & Back Room Square Footage (4,563 to 8,386) +84% • Parking Lot / Nursery Square Footage (3,900 to 10,162) +160% • Total Space Square Footage (24,027 to 41,768) +73.84% Project Goals • Keep the store in business during construction • Implement new services areas and backroom expansion • Create Germantown Hardware Rewards loyalty program • Integrated eCommerce website and Buy Online, Pickup In Store • Enhance Small Engine Repair/Rental • Add Propane Exchange Department Linear Footage Before Remodel Linear Footage After Remodel Percentage Increase Impulse 12 84 600% Lawn & Garden 353 768 118% Seasonal 12 24 100% Outdoor Living*** 60 116 93% Fasteners 116 160 38% Electrical* 148 180 22% Plumbing* 258 312 21% Tools* 160 192 20% Household* 114 136 19% Automotive 22 24 9% Paint & Sundries** 280 304 9% Hardware 289 308 7% Featured New Product Assortments • Automotive key fob/chip keys • RV supplies • Pool supplies • Pet supplies • Birding • Vintage sodas • Outdoor pottery and statuary • Indoor plants • Outdoor patio furniture • Rental department • Benjamin Moore and Valspar paints • Bulk propane * Sliders used in this department. ** Includes ladders, not included before *** Does not include grill and patio display area
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