True Value 2008 Annual Report Download - page 5

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To accomplish this and guide True Value through its next
phase of growth, we’ve developed a three-part plan to
win at retail that’s rooted in the belief that what’s best for
the customer is best for the co-op and its members.
CO-OP OF CHOICE
Retail success begins with a successful retail partnership.
To be the co-op of choice, it is critical True Value not only
provide the right products at a competitive price, but also
the retail support and services our members value and
expect from us. At True Value, we’re listening, improving
and delivering on these expectations so that doing
business with us is both easy and cost-effective. That’s
why we’re so pleased overall member satisfaction in-
creased 19 percent this year with notable improvements
in fill rates, product pricing, ease of ordering and variety.
In the past year we:
• Completed 19 line reviews and 95 wholesale assort-
ment reviews to update and streamline key categories,
generating over $2 million, or 3.4 percent, in savings.
• Collected point-of-sale (POS) data from 1,515 stores
to improve fill rates, assortments and circulars as well
as to help members identify sales opportunities in
their region.
27%
   
 
• Made continuous improvement toward our goal of
maintaining fill rates at or above 96 percent, which will
remain a top focus going forward.
• Completed the nal phase of simplied ordering,
making it easier to place promotional and market
orders and added new features, like reminders, into
retailPOSsystems.
• ImplementedthesecondphaseofourEnterpriseMer-
chandiseSystem(EMS)tomakepricingmoreexible
and therefore more competitive.
COMPETITIVE AT RETAIL
Central to our plan to win is a simple, but powerful prem-
ise – to win the customer’s share of mind and wallet, we
must first meet, then exceed their expectations. In 2008,
we put this philosophy to work by letting customer
insights and retail knowledge guide everything we do
to develop retail programs and solutions that are more
relevant, compelling and profitable at retail.
By delivering on the 5Ps of retail success each and every
day, we’re creating an exceptional experience for custom-
ers that fulfills our promise to be the best hardware store
in town.
®
TRUE VA LUE C OMPAN Y 200 8 ANN UAL REPO RT :: 6
Net Revenue ($ in millions)
Total Debt ($ in millions)
Net Margin ($ in millions)
Members’ Equity ($ in millions)
2005
2005
2005
2005
$1,975 $0
$2,000 $25
$2,025 $50
$2,050
$125
$150
$175
$200
$75
$0
$50
$100
$150
$194.1
$47.6
$59.0
$2,043
$144.5
$72.8
$102.7
$2,050
$127.1
$63.8
$132.7
$2,041
$2,013
$141.2
$64.2
$141.2
2006
2006
2006
2006
2007
2007
2007
2007
2008
2008
2008
2008