Black & Decker Corp. said that its power tools have not lost any listings at retailer Home Depot stemming from the launch of rival power-tool brand Ridgid.
In October, Home Depot began selling about 30 tools by Ridgid, a partnership between Emerson Electric Co. and the One World Technologies unit of Hong Kong's Techtronic Industries.
When Ridgid was rolled out, "we did not lose any position in Home Depot," Black & Decker CFO Michael Mangan told an investor conference. "While our percentage of shelf space declined" as Home Depot added more products, "we did not lose any (product listings) as some other power-tool manufacturers did."
Mr. Mangan said his company, which sells power tools under the DeWalt and Black & Decker names, has manufacturing plants in Asia and can produce tools just as cheaply as Ridgid can.
Last year's launch of Ridgid raised concerns that the new line would pressure other power-tool players. Home Depot has said Ridgid gained single-digit market share in the few months it has been sold.
Mr. Mangan, however, said that in comparison to Rigid, Black & Decker offers advantages such as better distribution and stronger customer relationships.
"The people that will struggle the most with the introduction of Ridgid are second-tier brands that don't have the cost position we have," Mr. Mangan said.
He also said Black & Decker's overall sales volume at Home Depot has declined as its Price Pfister faucets lost shelf space in an overhaul of the retailer's product offerings. But he said lost Home Depot business had been "more than made up for" with increased product listings at rival Lowe's and mass merchants. (Reuters)
to Daily News