During Orgill’s Fall Online Buying Event, Orgill president and CEO Boyden Moore presented a virtual address to retailers, vendors, Orgill employees and media outlets, highlighting company sales updates, supply chain recovery, inflation and pricing, his outlook on the rest of the year and the company’s plans for events moving forward. Read on for details from the address.
Supply Chain Recovery
Moore says Orgill sales are up 10% year to date and that supply chain recovery is the company’s No. 1 priority. He says it will remain as such until Orgill returns to its traditional standard of service level at over 96%. He says he expects to see numbers above 85% by the end of 2022, and Orgill is working with vendors to close the gap during the first half of 2023.
“We are beginning to see sustained improvement in our supply chain recovery,” Moore says. “Demand has moderated from the incredibly high levels that we experienced last year, and many of our vendors have improved their performance to us that has led to this sustained improvement.”
Inflation and Pricing
Moore says most economists are expecting continued declines in the rate of inflation throughout the remainder of 2022 and a return to lower levels of inflation in 2023. He says there is promising data on inflation moderation, citing recent examples in fuel and goods.
“With a more dependable supply chain and a more moderate level of inflation, we are
hoping to return to a somewhat more predictable and dependable business environment,” he says.
Moore says Orgill’s Exclusively Orgill brands are a solution for retailers to save their customers money, add gross margin to their stores and see better fill rates. He says the current fill rate for Exclusively Orgill products is more than 96%.
Orgill Company Updates
Moore says he predicts that as customer traffic slows, promotional planning will become more important to retailers.
“The challenges of the past two years have made promotion planning seem like a waste of time and money for many,” he says. “We see promotions being more important going forward, and we’re working hard to provide you with strong traffic-driving promotions to support your business throughout the second half of the year.”
Capacity to Support Customer Growth
Moore discussed Orgill’s Rome, New York, distribution center—which opened a year ago—and the expansion of the Hurricane, Utah, distribution center this year. The recent expansion nearly doubled the capacity of the Hurricane location.
“Those investments were critical in building the capacity to support our customers’ growth, and we’re already working on plans to continue to expand our capacity to support your growth in the future,” Moore says.
He says there are plans to announce another project in the near future.
Dealer Markets and Online Buying Events
Moore outlined a plan for four quarterly Online Buying Events to maximize promotions and assortment opportunities for retailers. The schedule for 2023 includes two in-person events to complement Orgill’s spring and fall Online Buying Events—Orgill’s Dealer Market in New Orleans and the just-announced NHPA Independents Conference in Dallas.
2023 Orgill Events
Spring Dealer Market: Feb. 9-11 in New Orleans
Spring Online Buying Event: Feb. 6-19
Summer Online Buying Event: May 8-21
NHPA Independents Conference: Aug. 2-3 in Dallas
Fall Online Buying Event: July 31-Aug. 13
Winter Online Buying Event: Oct. 30-Nov. 11
NHPA Independents Conference
Moore says Orgill is enthusiastically supporting and sponsoring NHPA’s Independents Conference to be held Aug. 2-3 in Dallas, and the company has adjusted its Fall Online Buying Event dates to coincide with the event.
“We encourage you to attend with us and meet us in Dallas, where we can work with you during the Online Buying Event while you network with our staff and your peers,” he says.
In addition to the NHPA’s planned programming, he says Orgill plans to offer its own exhibits and programming for customers that will complement the conference schedule.
“This is an exciting new development for the entire independent channel, and we want to help lead it,” he says.