Labor Rules Lead to Fastenal Closures
Fastenal closed 65 stores in Q3 and plans to shutter 32 more in Q4.
When the new year began for Fastenal, the distributor announced plans to relaunch its aggressive store opening strategy. But with the announced new labor rules redefining exempt employees, Fastenal changed course.
"In our smaller stores, we don’t always compensate above that $48,000 level, because we have folks that are building a business and we are a sales-minded organization," said Dan Florness, president and CEO, in an investor call to discuss third-quarter results. "… Stores under $75,000 a month are marginally profitable, and this damages that."
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