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DiversifiedWholesaling Strategic acquisition
Morrison builds upon its appliance business A
BY MARY JO MARTIN Editorial director
s one of the largest independ- ent, regional wholesalers in the U.S. — ranking #16 on
last year’s Wholesaling 100 — Mor- rison Supply Co. has built a diversi- fied business distributing products including residential and commercial plumbing; pipe, valves and fittings; hardware; HVAC; waterworks; gas and oilfield supplies; appliances; and lighting. With more than 80 locations across Texas, New Mexico, Okla- homa, Kansas and Louisiana, there are 30 showrooms where homeown- ers, builders and designers can select from a vast array of decorative plumbing, hardware, accessories and
M
appliances. Showroom sales account for approximately 15% of Morrison’s overall volume. Last year, Morrison significantly
expanded its appliance offering through the acquisition of the Builders Discount Appliance Mart in San Antonio. Over its 25 years in business, the Appliance Mart has built an impressive reputation in the Texas Hill Country. According to Morrison VP Jack McKendrick, there were a number of reasons Morrison found this acquisition so attractive. “First and foremost, the Appliance
Mart has a great history, and is well known in the area,” he said. “Ron Wiggs has managed the business since its in- ception, agreed to stay with us and con- tinues to manage the business. It just
Morrison Supply Co. over the years
orrison Supply Co. was founded in 1917 as the Fort Worth Pump & Windmill Co. by J.T. Morrison, W.L. Armstrong and R.P. Turbeville. Three years later,
the name was changed to Fort Worth Supply Company, reflecting its new focus on plumbing supplies, and in 1926, it was renamed Morrison Supply Company in recog- nition of the elder Mr. Morrison’s leadership. A handful of branches were opened in the early years — Amarillo (1922), Wichita
Falls (1926), Lubbock (1940) and Odessa (1946). As the Great Depression took hold, Glen Turbeville — son of R.P. — was chosen as the new president. He remained at the helm of the company for nearly 50 years, eventually becoming chairman of the board. Morrison expanded into South Texas in
1953 with the acquisition of Rich Supply in Houston, and also added an appliance and kitchen cabinet business based in San Diego. Also during the 1950s, Morrison began making acquisitions outside of Texas, including Fox Supply in Denver and Tuscan Pipe & Supply. Following Turbeville’s passing in 1984,
Bill Grannell was elected as his successor. Around that time, construction in Texas dropped sharply, and the Morrison leader- ship decided to sell its operations in Arizona and California. The company was then split into two entities, with Scott Sangalli purchasing the original Morrison Supply and its six Texas branches, and Bill Grannell purchasing the five locations in Colorado that became Fox Supply Company. As president and CEO, Sangalli led Morrison through significant growth, opening new branches in Texas. In just 10 years at the helm, Morrison’s sales volume rose from $17 million to $100 million. In 1998, Sangalli transitioned to chairman and CEO, and appointed Darrell Hawkins
president and COO. This move helped the company achieve even further momentum, adding HVAC, oilfield supplies, utilities, appliances and decorative hardware to its product mix, and opening more than 55 new locations across the Southwest. Today, Morrison operates more than 80 stocking distribution centers and 30 show-
rooms across Texas, Louisiana, Oklahoma, Kansas and New Mexico. They maintain a staff of 1,100 highly trained employees who are dedicated to serving the company’s customers. n
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Houston showroom — a move that McKendrick said has brought posi- tive results. “It’s proven to be exactly what we
anticipated and we’re very pleased with the response,” he explained. “It goes hand-in-hand with high-end home building, which we have been successful in selling in our other lo- cations. It just made sense to add ap- pliances to the mix. We’ve also added lighting and door/cabinet hardware in some showrooms, to create an entire selection that a homeowner or de- signer can choose from when build- ing or remodeling a home. “We’ve been steadily building re-
lationships with our appliance ven- dors over the last six years, so they were already in place prior to this ac- quisition. In fact, we actually got the lead on the Appliance Mart opportu- nity from one of our vendors.” McKendrick noted that Morrison managers determine what to display and stock in each showroom based on the demands of the individual mar- kets. However, he went on to explain that there are a few differences in handling ap- pliances. “Buying decisions are
made in the same way as our other decorative products,” McKendrick said. “We do some central purchasing, but the lion’s share of our appli- ances are ordered directly
building or remodeling between the selection appointment and installa- tion. So we coordinate with the builder or contractor on those ex- pected installation dates, and then schedule delivery from our vendors to coincide. Of course, we do keep a small inventory on hand to service those customers who need a quicker turnaround or a fast replacement. And there are occasions when we’ll get a special purchasing opportunity to buy a larger volume at a greater savings, which we’ll pass onto the consumer. “And physically handling appli-
ances is different than handling faucets or hardware simply because of the size and weight. So there are some precautions that our staff has to take in handling the appliances to en- sure we don’t end up with wrinkled stainless steel, etc.”
A look inside the Appliance Mart The Appliance Mart is a spectacu-
lar showroom that spans two adjoin- (Turn to Mart generates... page 34.)
made a lot of sense as a way for Mor- rison to get into the high-end appli- ance business in San Antonio.” Morrison first began selling appli-
ances about five years ago, follow- ing the extensive renovation of its
from the showrooms following the customer selection meeting. We’re not like a Best Buy; we don’t keep a lot in stock for a couple of reasons — one is that they are very large and take up a great deal of warehouse space. But the second, and more im- portant reason, is that in most cases there is a good deal of time when
•THE WHOLESALER® —APRIL 2011
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