Services that Drive Growth

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Fastenal, a leading industrial distributor, continued to post strong growth in their business. Like most companies they have seen a slowdown in the last three months of the year (same store growth), but it would be our guess that while this year will be hard on Fastenal, perhaps it will be even harder on the folks who must compete in this line of trade. Here’s the reason why. Fastenal has mastered the art of bin restocking. They have essentially put together a reliable and efficient system for their customers to outsource a bit of the inventory handling and maintenance. Other distributors should make note and build their own system if they want to compete.

Reported from MDM Staff

 

Fastenal Company, Winona, MN, reported sales for the year end Dec. 31, 2008, were $2.34 billion, an increase of 13.5% from the prior year. Profit was up to $279.7 million, an increase of 20.2%. In 2008, Fastenal opened 161 new stores, an increase of 7.5%. Although the distributor had overall growth, its same-store sales saw a slowdown in the last three months of the year. In the fourth quarter, Fastenal reported sales of $544.9 million, up 5% over the prior-year period. Profit increased 11.3% to $62.5 million.

More details on Fastenal’s year-end results in the Fastenal report here.


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