WW Grainger is about to issue earnings. Ponder these Black Swans floating in the supposed wide moat:
Management is under-taking a very aggressive approach to consolidation. Overpayment risk becomes increasingly probable as deal maker fever sweeps.
Most of Grainger’s sales are by requisition. Clients have pricing control. Very little retail is involved albeit with higher margins.
Distributors have minor foot prints internationally and will not contribute greatly to any overseas successes.
George Gutowski writes from a caveat emptor perspective.