- DTV comparable store sales up 4.7 percent
- Retail comparable store sales up 3.1 percent
- Wholesale comparable store sales up 1.8 percent
CHICAGO–(BUSINESS WIRE)–True Value Company, one of the world’s largest retailer-owned hardware
cooperatives, today reported total gross billings of $2,033.2 million
for the fiscal year ending Jan. 2, 2016, up 2.0 percent or $39.3 million
compared to the prior year on a comparable 52-week basis. Revenue was
$1,497.2 million, an increase of 1.3 percent or $18.6 million on a
comparable 52-week basis. When comparing the 52–53-week fiscal year,
reported gross billings were up 0.9 percent and revenue increased 0.1
Destination True Value (DTV) comparable store sales were up 4.7 percent
for the fiscal year. The company also experienced its fifth consecutive
year of increased annual sales as wholesale comparable store sales, on a
gross billings basis, were up 1.8 percent for the year. Retail
comparable store sales were up 3.1 percent with increases in every
region of the country and across all product categories, led by Farm
Ranch Auto & Pet, Lawn & Garden, and Hand & Power Tools.
“Our 2015 results demonstrate that True Value is investing in the future
of the co-op for its members as we continue to focus on the strategic
pillars of engagement, growth and efficiency,” said President and Chief
Executive Officer John Hartmann.
The cooperative planned for a decrease in net margin in 2015, posting a
net margin of $19.0 million for the year, driven by investment expense
incurred in connection with the implementation of the company’s
strategic plan. As committed, the company will pay a similar cash
patronage dividend as last year.
“There has been a compelling amount of progress made in support of the
plan as evidenced by our members’ success,” said Hartmann. “In 2014 and
2015, our growth averaged 3.5 percent on a gross billings basis—well
above the historical levels. And for the five years prior to the start
of our plan, retail sales averaged less than one percent. In 2015,
retail sales increased 3.1 percent and DTV stores increased 4.7 percent.
The work we are doing is making a difference and that is where our focus
The company has been making long-overdue investments in initiatives
related to the engagement pillar with programs such as Customer Service
Training and the rollout of the Roadmap to Retail Excellence, a tool to
help diagnose and guide what actions retailers can take to achieve their
goals. The Roadmap has already played a role in influencing store
changes, leading to some fantastic success stories.
“True Value introduced me to the Roadmap to Retail Excellence and helped
me develop a plan to achieve greater growth and profitability,” said Lee
Bryant of Bryant True Value of Corbin. “We’ve experienced more growth in
the last year than we have in the last 20 years thanks to guidance and
help from the co-op.”
My True Value – A New Customer ExperienceSM is
helping members train their people to create defining moments with
customers. To date, over 1,000 store owners and their associates have
become “chat” certified. They are well on their way to providing those
defining moments that create loyalty with customers.
Investment in the growth pillar assisted retailers with creating a
relevant consumer experience and improving member profitability. DTV is
a proven format that consistently provides returns for True Value
members. In 2015, the cooperative announced a more flexible, affordable
DTV making it easier than ever before for members to update their
stores. As such, in 2015 the company added nearly a million square feet
of DTV retail space.
“The momentum we have after implementing DTV has changed our lives and
our business,” said CC Gibbs of Gibbs True Value. “We see young people
shopping our store rather than going to the big box stores, and we are
now more profitable than we ever thought we could be.”
In addition to expanding relevant formats in its network, a number of
multi-store chains converted to True Value in 2015 including Busy
Beaver, Miami Home Centers and National Lumber.
“Becoming a part of the True Value family and having access to exclusive
brands further supports our competitive edge,” said Dan Hitchcock, owner
of Miami Home Centers. “One of the primary drivers of converting to True
Value was being able to offer our customers their private label paint
Easy Care,” said Hitchcock.
Centered in the efficiency pillar was True Value’s fleet transition to
Ryder Integrated Logistics, providing dedicated fleet services to
support deliveries from True Value’s regional distribution centers.
Transitioning to Ryder provides huge savings to help stabilize delivery
costs and the long-term sustainability of high touch delivery. The new
trucks, new technology and a larger driver pool will greatly advance the
cooperative’s journey to best-in-class service.
“Momentum is building at True Value, and we are focused on serving our
membership rather than allowing the membership to serve the co-op,” said
Hartmann. “We are at a pivotal time in our history, and are navigating a
transformational path towards greater member growth and profitability.
And we’re just getting warmed up.”
ABOUT TRUE VALUE COMPANY
True Value Company, headquartered in Chicago, is one of the world’s
largest retailer-owned wholesale hardware cooperatives with gross
billings of over $2.0 billion and revenue of $1.5 billion in 2015. The
True Value cooperative includes approximately 4,500 independent retailer
locations worldwide operating under the store identities of True Value,
Grand Rental Station, Taylor Rental, Party Central, Home & Garden
Induserve Supply. Additional information on True Value and its
retail identities is available at www.truevaluecompany.com.
True Value Company
Jean Niemi, Vice President, Communications