84 Lumber announced today that Mark Mollico, a 30-year veteran of the dealer, will relocate to the Phoenix area to lead an expansion that calls for opening "at least a dozen" new facilities in the western U.S.
Mollico currently is 84's vice president of human resources. Over the decades he also has been 84's director of inventory management and purchasing, its director of marketing and pricing, and its director of contractor purchasing. He also was a lumber buyer in earlier years.
Mollico and 84 will "establish a new office in Phoenix" as well as "open at least a dozen new stores and manufacturing facilities in the western United States within the next 18 months," 84 said in a news release. “We are taking the steps needed to seize the growth opportunities we’ve identified in the Western markets,” 84 COO Frank Cicero was quoted as saying. “By establishing an Arizona headquarters, we are putting the right people and systems in place to successfully execute our aggressive expansion plans over the next two years.”
The press release's reference to 12 new stores at minimum tops the nine facilities plus Phoenix office that Cicero listed for ProSales in a March 24 interview. Cicero said then that 84 intends to open two stores in the Seattle area; one around Boise, Idaho; one in the Salt Lake City area; one in the Denver area; a facility with component manufacturing capability in Las Vegas; a second store in San Antonio; and stores in Lancaster and Stockton, Calif. It's possible the other two are in the Portland, Ore., market and in the Salt Lake Valley, as Cicero also mentioned those two areas as possible expansion zones.
While its 252 branches are most prevalent in the Mid-Atlantic, 84 already has 11 stores in Texas, three in California, two in Arizona, and one each in Nevada, New Mexico, and Colorado. It currently isn't in Washington, Oregon, Idaho, or Utah.
The Lancaster and second San Antonio yards have a good chance of opening this year, Cicero said on March 24, while the rest have to go through permitting processes and such and thus won't be ready until 2017 at the earliest.
The plans help show how far 84 has recovered from the days in 2008-09, according to a Forbes article, in which the company teetered on the edge of bankruptcy and had closed dozens of yards, many of them in the West. Now 84's revenues are back up to about $2.5 billion as of 2015; its January-February revenues were 25.8% over the same months in 2015, and its year-over-year revenue growth for March was even better at 35.7%, Cicero said.