CHICAGO, November 15, 2000 – Wesley M. Clark, Group President of Grainger spoke today before a group of financial analysts and business leaders attending the Robert W. Baird 2000 Industrial Technology Conference in Chicago. The conference, which was held at the Four Seasons Hotel, focused on adoption of technological solutions in industry and was attended by approximately 200 analysts.
“Being the first to develop an e-commerce Web site has given Grainger the lead in understanding how bricks and clicks must work together,” Clark told the audience. “Nobody can offer their customers the cost savings, time savings, reliable service and innovative solutions that Grainger can. We believe the next decade will allow Grainger to grow its market share substantially because Grainger.com will provide our customers with faster, better, and cheaper solutions.”
Grainger is distinguished in the maintenance, repair and operating (MRO) supply industry as having the premier Web site, offering 220,000 products and earning more than $200 million dollars in sales this year. Grainger.com sales are projected in the range of $270 to $280 million dollars for fiscal year 2000. Grainger’s connection to marketplaces and enterprise software vendors (ESV) systems such as Ariba and Commerce One enables customers to achieve greater cost savings in the adoption of e-procurement systems.
Added Clark, “As we move into 2001 and beyond, the expected impact of the large customers using ESVs to connect to Grainger.com will accelerate our growth rate. We also expect to see significant improvement in growing our key customer segments. Some of the most promising segments include government, heavy and light manufacturing and commercial markets.”
Grainger’s strategic distribution network includes zone distribution centers and 384 branches in locations across the United States, 188 in Canada and two in Mexico. The Company has invested $165 million dollars in a capital improvement project to streamline and increase efficiency within the distribution network. Regional distribution centers will be eliminated as Grainger realigns the network to respond to Internet business. At the local level, smaller storefront branches with open merchandising displays are replacing traditional, larger branches.
“We’re betting our strategy on local availability, combined with a robust Internet front end and supported by an unparalleled logistics structure,” Clark concluded. “We are working to align our organization and the Internet opportunity throughout all of our operations. And as we continue to bridge the gap between the Internet and traditional MRO, one thing is certain. We will remain customer focused.”
W.W. Grainger, Inc. (NYSE: GWW), with 1999 sales of $4.5 billion, is the leading North American provider of maintenance, repair and operating (MRO) supplies and related information to businesses and institutions. Grainger shares are traded on the New York and Chicago stock exchanges. For more information, visit Grainger online at www.grainger.com.
This document contains statements that are not historical facts and are forward-looking. The forward-looking statements (generally identified by words or phrases indicating a projection or future expectation such as “is planning to” or “estimates”) 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.