True Value 2008 Annual Report Download - page 4

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shareholder letter
True Value has a strategy for winning at retail. Three years
ago, we set out on a path to profitable growth by putting
a retail focus at the heart of everything we do. This past
year, we began to deliver on that future as key improve-
ment initiatives took hold and our new format, Destina-
tion True Value (DTV), gained momentum showing the
co-op is stronger than ever.
2008 presented some of the greatest challenges retailers
have seen in decades. Consumer confidence hit an all-
time low. Unemployment rose to a 25-year high. And, all
of this culminated in the weakest holiday selling season
the retail industry has experienced in over three decades.
Despite these shifts in the economic environment, our re-
tail focus, commitment to profitable growth and unique
position in the hardware industry enabled True Value to
perform well versus the home improvement retail sector
this year. Revenue was $2,013 million for the full year, a
decrease of 1.4 percent versus 2007. Net margin was $64.2
million after a one-time $3.0 million benefit, comparable
to last year despite significant headwinds from higher fuel
and transportation costs.
Looking back at our financial performance in 2008, there is
much that we as members and associates of True Value
can be proud of:
to our members:
• Weenjoyedcomparablestoresalesthatoutperformed
the home improvement industry in 2008 on both a
wholesale and retail basis.
• Theretailgrowthofourco-opplayedasignicantrole
in this year’s result. As we expanded our retail pres-
ence and invested in our future through the new DTV
store format, we achieved a new milestone in 2008 –
for the first time in over a decade, our new store sales
exceeded our terminated store sales.
As we look to the next five years, we’re transforming the
way that we do business to deepen our commitment to
become a retail-focused organization that drives profit-
able growth for our stores by helping them deliver an
exceptional customer experience at retail.
our retail focus, commitment to
profitable growth and unique position
in the hardware industry enabled true
value to perform well versus the home
improvement retail sector this year.