Worcester Business Journal

8 Worcester Business Journal | January 22, 2018 | wbjournal.com I n August, Aubuchon Hardware announced it would cease distri- bution operations in Westminster, a decision that CEO William Aubuchon, IV admitted was a tough one. Aubuchon said in an interview this month the move not only displaced union workers, putting the 110-year-old retail hardware chain in the headlines; other employees, including family members, lost their jobs too, for a total of about 60 layoffs. But rather than a mere cost-cutting measure, ending distribution in favor of moving to independent distributors was a strategic play Aubuchon hopes will help the company grow, with the poten- tial to add hundreds of stores in the coming years. "It was a major pivot in our history, in our tradition, but I think it's a foun- dational one for us looking into the future," Aubuchon said. After 90 years, a centralized distribu- tion facility was almost as old as the fourth-generation company itself, but it had become a bottleneck, said Aubuchon, the 40-year-old scion of the Aubuchon family who holds a bache- lor's degree in economics from Williams College and and an MBA from Babson College. Working for the company in some capacity since he was a kid, and official- ly since 1991, Aubuchon has watched retail hardware evolve from an entirely in-store game to one increasingly choked out by big box stores and online retailers with the scale to deliver the products customers want, quickly. But thanks to the nature of the busi- ness, there's always been hope for Aubuchon Hardware to make it through the shakeout brought on by Amazon, Home Depot and their breth- ren. Even as online retail continues to siphon shoppers from stores, Aubuchon's sales have increased, with $168 million in revenue in 2017, up from $154 million in 2014, according to the company. Aubuchon credits his great-grandfa- ther, William Aubuchon, Sr., with founding a business with a crucial cus- tomer service component. "It's very important to have someone at the store that you can depend on, that's knowledgeable and friendly," Aubuchon said. Creating an tailored experience That's something, Aubuchon said, online retailers can't provide, and with a home repair niche, Aubuchon is poised to deliver that customer service. Yet, the other part of the equation, he said, is to create an overall superior experience for shoppers. Across all retail categories, the industry depends on creating a great experience for shoppers. Jon Hurst, president of the Retailers Association of Massachusetts, agreed, saying shopping in stores is a form of entertainment for shoppers, but the trick is to zero in on their needs. "You just have to find your right niche of what your customer is looking for and serve them in the most efficient and effective way," Hurst said. For Aubuchon, that means offering products customers need, specific to their geography and proximity to other retail options. That's the drive behind the decision to work with independent distributors. By doing so, the company can offer product assortments tailored to the local customer base. "Every single market is a little differ- ent, so we need to be able to flex our product assortment," he said. Aubuchon Hardware has kept its revenue on the rise in the last four years, in spite of staunch competition from big box and online retailers, as it has grown through store expansions, openings and acquisitions. Aubuchon growth 0 $50M $100M $150M $200M $168M 2014 2015 2016 2017 $160M $159M $154M Source: Aubuchon Hardware BY EMILY MICUCCI Worcester Business Journal Staff Writer A new era for Aubuchon After outsourcing distribution, CEO sets sights on adding hundreds of market-tailored stores P H O T O / E D D C O T E William Aubuchon, IV sees vast potential in his great-grandfather's business, possibly buying up retiring Baby Boomer's stores across the country.

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