How a big distributor will reach its digital milestone

For Rexel, going increasingly digital is a top strategic priority.

Rexel is an international distributor of electrical, heating, lighting, and plumbing equipment.

“The share of digital in total sales is expected to double and reach 50% by 2027 versus 24% in 2021,” says Rexel CEO Guillaume Texier.

To achieve its goal, Rexel is setting a series of target dates and introducing a host of new digital initiatives. Rexel sells a wide range of equipment and services in the fields of:

• Automation
• Technical expertise
• Energy management
• Lighting
• Security
• Climatic engineering
• Communication
• Home automation
• Renewable energies

Rexel digital sales growth

By 2027, Rexel has plans for digital commerce to account for one-half of all sales. That includes 40% by 2025, up from 28% for the first six months of 2023.

“The digitalization of our business is at the heart of Rexel’s transformation and the ramp up toward our target of 40% of digitally enabled sales in 2025 continues,” Texier told analysts on the Rexel’s recent second quarter earnings call. “We were at 24% at the end of last year, and we are at 28% at the end of H1. We also strive for supply chain excellence with the aim of tripling the numbers of automated distribution centers.”

One way, the distribution company will grow its digital sales base — and its overall business strategy — through acquisition. For example, Rexel in the second quarter acquired Wasco, a distributors of HVAC products and services in the Netherlands with annual sales of 650 million euros ($712.7 million). About 60% of all sales for Wasco are digital, Rexel says.

“Wasco has posted double-digit growth over the past few years, and its acquisition will allow Rexel to benefit from energy transition related opportunities, Texier said.

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