With UUU's expanded supply and ability to increase direct selling to the public through a new relationship with a major home improvement store, I think it is apt to re-examine what the growth strategy for UUU consists of.
I don't think it's reckless to assume that UUU is trying to directly compete with UTX's Kidde market. Right now, Kidde sells at all the major retailers including Walmart, Target, Home Depot and Lowe's among others. I'm not sure the exact valuation of UTX's fire safety division, but it's at least a couple billion.
UUU now as I see it has, as a small company, strategically positioned themselves to aggressively compete at various price points, which is likely why they are being offered retail space at a major home improvement store (likely home depot).
We may soon find out other major retailers are going to stock UUU's products. Considering that the opportunity is now to take advantage of new CO1 legislation, there is huge growth opportunity ahead if we pursue the retail market - ESPECIALLY considering UUU has also strategically positioned themselves to begin competing in the commercial market with their conduit acquisition.
It will be interesting to see how much of the retail market UUU can capture from UTX.
Kidde is the only company besides USI to increase market share over the past 6 years. I am convinced it is entirely from big box retail sales. They are the exclusive provider of smoke/co alarms to Lowes and it is no coincidence that as Lowes has grown, so has Kidde sales.
The fact that we currently sell to NONE of those big box guys and yet we have grown 14 x while Kidde grew 2 x speaks volumes to what will happen when we start showing up on Kidde's turf.
Some have said they hope it is Home Despot (or know its them) but I hope it is Lowes. Then we can go head to head with Kidde and we are bound to win. Plus Lowes is growing faster than Home Despot. At Home Despot there is tons of competition as they sell all kinds of brands. Makes it harder to stand out.
Either way there is no reason to think this won't be a huge success. This will lead to us being included in other retailers and the ball just keeps rolling.
Also I think we automatically will be in Walmart by sometime in 2008 when we become the #1 selling Co/smoke detector company. I am pretty sure Walmart tends to sell #1 selling brands.