CHICAGO, April 28 -- W.W. Grainger, Inc. (NYSE: GWW), announced today that sales through its Web site, Grainger.com(TM), have achieved an annualized run rate of $70 million. Grainger.com achieved sales of $10.1 million for first quarter 1999, a 339 percent increase over the first quarter 1998. In April 1999, sales exceeded the $13.5 million recorded to the entire year of 1998. Grainger's Chairman and CEO, Richard L. Keyser released Internet sales figures at Grainger's Shareholders' Meeting today. Grainger.com offers more than 210,000 maintenance, repair and operating (MRO) supplies online.
To date, Grainger has invested more than $25 million in electronic commerce. "Grainger's focus on the Internet is part of our multi-channel strategy. Just as our branches are conveniently located near most North American businesses, Grainger.com is a click away from every business," stated Keyser.
Donald Bielinski, Grainger group president, believes the company is well-positioned to capture share in the fast growing business-to-business Internet market. A recent Forrester Research, Inc. study projected this market will reach $1.3 trillion by 2003. "The size of the market, Grainger's leadership in Internet commerce and our expertise in MRO combine to represent
a significant growth opportunity," says Bielinski.
"We're capturing share online," says Daniel Hamburger, president, Grainger Internet Commerce. "According to our studies, sales to customers who order on Grainger.com are growing in excess of 32 percent, and average dollars per order are nearly twice that of offline orders."
Grainger's Internet success has led to the development of the recently announced OrderZone.com(SM). OrderZone.com is a new multi-distributor Web site that brings an innovative Internet solution to business customers by streamlining the purchasing process across multiple suppliers. The Web site lets customers purchase a wide variety of products and services using one order form and one invoice. OrderZone.com is scheduled to launch in May.
W.W. Grainger, Inc. (GWW) with 1998 sales of $4.3 billion, is the leading North American provider of maintenance, repair, and operating (MRO) supplies, services, and related information to businesses and institutions. GWW shares are traded on the New York and Chicago stock exchanges. For more information, visit Grainger online at http://www.grainger.com.
This document contains statements that are not historical facts and are forward-looking. The forward-looking statements are based on the Company's current expectations and some of them are subject to risks and uncertainties the outcome of which could result in actual future performance being materially different from the performance indicated. They should be read in conjunction with the Company's most recent annual report, as well as the Company's Form 10-K and other reports filed with the Securities and Exchange Commission, containing a discussion of the Company's business and of various factors that may affect it.