Stanley Works to expand business with Wal-Mart - Brief Article

Home Channel News, Feb 5, 2001

NEW BRITAIN, CONN. - Stanley Works, the tool and hardware supplier whose sales growth has been stagnant in recent years, said today that it would be expanding the assortment of products it is selling through Wal-Mart, the world's largest retailer.

In March Wal-Mart will phase in 112 skus of Stanley hand tools, mechanics tools and Zag-made tool boxes into all 2,600 of its discount stores and supercenters in the United States. As part of this phase in, Wal-Mart intends to discontinue its line of private-labeled carpenters' and mechanics' hand tools.

Wal-Mart has also agreed to allow Stanley to recommend product listings based on market data and to lead marketing initiatives that would include in-store signage, racking, off-shelf displays and product presentation. The retailer intends to feature Stanley's complete tool line.

Former Ernst Home & Garden executive Gordon Erickson, Wal-Mart's senior vp and general merchandise manager, said the alliance is meant to improve the discounter's market position in the branded tool segment.

This deal could not have come at a more propitious time for Stanley, which has been struggling over the past few years to find ways to boost its sales. For the year ended Dec. 31, 2000, Stanley reported that its revenue grew only 1.1 percent to $2.75 billion. Earnings for the year were more robust, increasing by nearly 30 percent to $194.4 million.