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 Watermill acquired Moore's in December 1997, when the company was operating over 50 lumber and building supply locations throughout the mid-Atlantic region and was experiencing declining sales and margins. Using the proprietary Strategic Dashboard, Watermill determined that Moore's was in a Q3-Q4 (mature) industry, yet was not adequately differentiated to compete in this maturing market. In addition, Watermill's analysis revealed that the nature of rivalry was changing substantially by well-capitalized "big box" retailers who could use economies of scale to establish low-cost positions in rural areas.
Watermill engaged Moore's in a process to change the focus and driving force of the company to target exclusively a professional (pro) contractor base. Moore's shut down and sold its unprofitable locations and used the proceeds to invest in an infrastructure and operations system that would support its pro-contractor base. This included more in-house manufacturing of doors and windows, back room systems that support 100% on time delivery and short lead times, and strategic placement of stores to assure market share leadership by region. Warehouses, information systems, marketing and purchasing were reconfigured along an aggressive timeline. In the process, Moore's funded debt was reduced significantly. As a result of Watermill's strategic approach and optimal redeployment of assets and capital, Moore's is now outperforming the industry and growing organically.
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