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The Company is in the service business. It distributes products used by businesses and institutions across North America to keep their facilities and equipment running.
Grainger has two problems right now... they are technically in the retail sector (a highly specialized retailer, I admit) and the whole recession theme is increasingly getting a lot of extra news coverage – which typically hurts retailers. And secondly, they just got caught "possibly" cheating the Government, which - odds are high - will give them some kind of grief during the next year more than likely.
Government pricing issue already a non issue. Company is solid and not at all related to the "Retail" market. This company provides full MRO services to manufacturing/government /education through out the US and does it while watching costs. Also doesnt hurt that margins are very good.
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