Computer wholesale discount hardware

Caldor Lines Up New Distributors For Auto, Hardware, Housewares

NORWALK, Conn. - In a move designed to improve its in-stock position, Caldor has switched to new distributors for hardware and paint sundries, automotives and housewares.

The deal, struck prior to the chain's announced spin-off from its parent (see story, page 1), means an estimated $45 million in new revenues for the three distributors that will share the business. The move also may have contributed to the bankruptcy filing of one of its former distributors.

Denver-based Amdura National Distribution Co. will supply automotives to all 118 Caldor stores, and supply hardware and paint sundries for 57 of the stores. Amdura estimates that automotives will amount to $10 million a year, with its share of Caldor's hardware business accounting for another $10 million. Housewares will come to about $15 million for two distributors that will split that end of the business.

Schreiber Wholesale Services, Lititz, Pa., will provide hardware and paint sundries for 63 Caldor stores and housewares for 64 units.

Federal Wholesale, Hubbard, Ohio, will provide housewares for the other 56 Caldor units. Federal began shipping Oct. 3, while Schreiber expects to start writing orders Oct. 30.

Previously, Halmar Distributors, East Longmeadow, Mass., supplied hardware and housewares for the entire chain, while Babco, Yantic, Conn., supplied automotives.

Officials of Halmar and Babco both declined to comment on reasons for the switch. Halmar filed for Chapter 11 protection from creditors on Oct. 16. A source told DSN that delays in opening a new distribution facility and computer center adversely affected Halmar's ability to service its clients.

Paul Carlucci, senior vice president, marketing for Caldor, said "we are very cognizant of in-stock problems. We're making changes to correct that problem."

A distribution industry source confirmed that Caldor has had some fill problems for hardware, housewares and automotives.

Schreiber, which New York-based S.E. Nichols sold this summer, entered into an open agreement, without a fixed contract, said ceo Thomas Cornell. In hardware and housewares, Caldor has shifted to two distributors to provide backup just in case one falters, Cornell commented.

Amdura will supply automotives from its Pawtucket, R.I.-based operations, which it acquired last year from Globe Distributing, said Brian MacKenzie, senior vp, sales and merchandising.

Selecting two distributors for hardware and housewares was "a strategic move on their part," MacKenzie said.

In automotives, though, Caldor is sticking with a single distributor to make sure the volume is large enough to be profitable for the distributor.

Caldor extends Amdura's lengthy list of discount chain customers. It already services: Target, Hills, ShopKo, Bradlees, Rose's, Meijer, Ann & Hope, Rich's, Makro, Sam's Wholesale Club, Biggs and Twin-Valu, MacKenzie said.

Caldor is the first major discount chain account Schreiber landed since Nichols sold it in a $20 million deal intended to improve the chain's cash flow.

Tom Bianco, president and ceo of Federal Wholesalers, said that Rubbermaid, Corning and Ekco will stand out among housewares brands his firm will distribute to Caldor.