Home Depot targets pro customers

Building materials supplier sees weakness in pro segment, however


Home Depot says it plans to be “aggressive and opportunistic” in reaching pro customers despite what it sees as weakness in that segment in the second half of 2010

In an earnings call report with financial analysts last week, Home Depot chairman and CEO Frank Blake said there are reasons for the company to be “cautious” across its business.

“We still see still see weakness in our pro segment. We had anticipated that we would start to see growth in our pro customers as we moved into the second quarter, and based on that we thought we’d see gradual improvement in our average ticket. We’re now forecasting modest to flat improvement on the pro side, which puts pressure on average ticket,” he said.

“We also are anticipating softer housing related activity than we originally thought. Clearly, there was some pull-forward of activity from the home buyer tax credits and foreclosures remain high.”

During the question and answer session, Marvin Ellison, executive vice president for U.S. stores, said the company will be targeting the pro market for growth. These pro customers are remodelers, contractors and those serving the maintenance market.

“We’re going to be aggressive and opportunistic with the pro customers,” he said. “We’re going to focus on staffing and service levels and getting them in and out really quick, which is a mandate that they’ve given us. We have a field team that is out there building relationships, understanding the needs of the pro. We’re working with Craig (Craig Menear, executive vice president merchandising) and his team to make sure we’re merchandised the right way, we’re priced the right way. So we’re going to fight as hard as we can to take care of the customers. But again, as Frank said, we just don’t anticipate robust growth in the second half, ”Ellison said.

McJunkin Red Man buys South Texas Supply

Acquisition expands MRC's commitment to customers in the oil and gas shale plays across North America

McJunkin Red Man Corp. acquired The South Texas Supply Co. Inc. as part of its strategic plan to increase business with customers in the active shale plays across North America. Terms of the deal were not disclosed.

The acquisition will help MRC support customers in the oil and gas exploration as well as pipeline and transmission infrastructure markets, the distributor said. South Texas Supply supports customers in the Eagle Ford Shale, a rock formation across several counties in South Texas where oil and natural gas can be found.

South Texas Supply operates two branches in the region, in Carrizo Springs and Dilley, Texas. Selling shareholder Mark Hassell will continue to manage the two locations, MRC said in a press release. The branches enhance MRC's coverage in South Texas, which includes locations in Laredo, Corpus Christi, Gonzales, Mission, and Jourdanton, Texas. MRC plans additional expansion in the area with a regional hub and major pipe yard, increased inventory, and enhanced logistics to meet local customers' needs.

MRC is also focused on organic growth to serve the activce shale plays nationwide. Earlier this year, the distributor opened a new facility in Horseheads, N.Y., to support northern activity in the Marcellus Shale, and has plans to open branches in Shreveport, La., and Center, Texas, to support the Haynesville Shale in the Gulf Coast area.