AD Member Sales Decline 6% in First Half of 2020

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AD Member Sales Decline 6% in First Half of 2020

Buying group AD, however, grew its rebate distributions 1% despite the softness of the market due to the COVID-19 pandemic.
Affiliated Distributors

Wayne, Pennsylvania-based buying group AD on Monday announced that on a same-store basis, member sales across all of its divisions and countries were down 6% to $21.6 billion for the first six months of 2020 compared to the same period a year ago. The decline was driven by a 13% dip during Q2.

By business unit, six-month plumbing, heating, cooling and piping same store sales were down 4%; electrical sales were down 6%; building materials sales were down 6%; and industrial and safety sales were down 7%.

Group purchases from AD suppliers were down 2%. Net rebate distributions to members grew 1%.

AD CEO Bill Weisberg said, “The strength of the independent business model — locally run, fiercely self-sufficient and agile — shines through in times like these, as does the effectiveness of collaboration and information sharing within our tight-knit community. Our community intends to not only recover but grow.”

Ted Simpson, AD’s SVP of marketing, added, “The AD team continues to be immersed in activities centered on helping our members and suppliers navigate this environment while prudently managing expenses. Programs and initiatives like message boards, AD Rewards, Frontline Business Intelligence reports, More Time to Pay, AD Education Center, and networks were either newly created or adjusted to accommodate current operating dynamics.”

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