True Value 2013 Annual Report Download

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2013 Annual Report
THE
VALUE
OF
CHANGE

Table of contents

  • Page 1
    THE VALUE OF CHANGE 2013 Annual Report

  • Page 2
    THIS IS WHAT GUIDES US: THE VALUE OF

  • Page 3
    PEOPLE We are creating a new True Value, guided by a renewed commitment to engagement with all who share in our success. It starts with customers and the retailers who serve them. It includes our suppliers, and our associates, and our communities-and it sets the path for visionary change, industry ...

  • Page 4
    THIS IS WHAT MOTIVATES US: THE VALUE OF 2 TRUE VALUE 2013 ANNUAL REPORT

  • Page 5
    ... opportunities to support growth for our retailers, our co-op and our suppliers. We're revitalizing our brand to make it more relevant in the marketplace and creating a highperformance business model to drive and sustain our mutual success over the long term. TRUE VALUE 2013 ANNUAL REPORT 3

  • Page 6
    THIS IS WHAT DRIVES US: THE VALUE OF 4 TRUE VALUE 2013 ANNUAL REPORT

  • Page 7
    CHANGE We are investing in a new True Value, driven by the desire to continuously improve efficiency. We seek to create a state of constant, positive change across the company, always looking for new ways to do things better, faster and more cost effectively. TRUE VALUE 2013 ANNUAL REPORT 5

  • Page 8
    ...our first annual report message as leaders of True Value Company with three words. Change is here. Building a new True Value together We strongly believe there's a place for the independent hardware store in the hearts and minds of today's consumer. That's why we're driving change at True Value to...

  • Page 9
    ... Capital and the Boston Consulting Group. Abhinav will oversee the consolidation and management of our supply chain, distribution and logistics functions. Tim's career spans executive positions in operations, sales and strategic development, distribution, process excellence and customer service at...

  • Page 10
    ... to build something better, something more relevant, something that endures. Together we are going to demonstrate that True Value's best years are ahead. Sincerely, John R. Hartmann President and Chief Executive Officer Brent A. Burger Chairman of the Board 8 TRUE VALUE 2013 ANNUAL REPORT

  • Page 11
    ... annual patronage dividend. GROSS BILLINGS $ IN MILLIONS $1,864 $1,884 $1,900 2011 2012 2013 2013 TOTAL RETAILER BENEFITS ($ IN THOUSANDS) REVENUE PATRONAGE DIVIDEND/CASH PATRONAGE DIVIDEND/NOTES, STOCK PROMOTIONAL DISCOUNTS DATING & ANTICIPATION REUNION SPIFFS/RACKING MARKETING REIMBURSEMENTS...

  • Page 12
    A NEW TRUE VALUE 10 TRUE VALUE 2013 ANNUAL REPORT

  • Page 13
    ...T OR When we work together to serve the customer, we all win. This year's annual report profiles a new target consumer-the young homeowner-and just a few of the thousands of retailers, suppliers and co-op associates whose talent and passion will take us forward. TRUE VALUE 2013 ANNUAL REPORT 11

  • Page 14
    ... PROJECT IS A TRUE VALUE. Our loyal customers have supported True Value for years. As we serve them, we're expanding our reach to a new generation we call "Young Achievers." They're active and hands-on, median age 31, and they're buying their first homes. A perfect group to take True Value into the...

  • Page 15
    ...a leaky faucet. It's the value of a job well done, and it's what you've always provided. Welcoming the young home buyer. A key target for the new True Value brand strategy is first-time home buyers. They're young achievers. They like doing projects around the house and in the yard. They need tools...

  • Page 16
    ... in 1883. Today Cole's Hardware is one of True Value's most successful retailers. "Of the 5Ps of retail, 'place,' is a big priority," says great-grandson William "Bo" Cole III. "We've moved quite a few of our stores to get our locations right." Product and people are a key focus, too. "We spend...

  • Page 17
    (LEFT TO RIGHT) GEORGE KUHNS, BRIAN SHAFFER, BO COLE AND BROTHER GREG. TRUE VALUE 2013 ANNUAL REPORT 15

  • Page 18
    ... True Value and DTV are big parts of that." RICHARD McMASTER, STEELE'S TRUE VALUE Steele's True Value is a familyowned hardware store in Tannersville, Pennsylvania. Owner Rich McMaster learned the business as an employee before buying the store from the Steeles in 2002. "I owe Jack and Irene Steele...

  • Page 19
    TRUE VALUE 2013 ANNUAL REPORT 17

  • Page 20
    ..., FAMILY FARM & HOME Michigan-based Family Farm & Home is True Value's newest member. With 28 stores and counting, this family-owned chain switched from another hardware partner to better support expansion plans. Al Fansler knows how to grow a retail business. He spent many years working with...

  • Page 21
    (LEFT TO RIGHT) SON-IN-LAW BOB TARRANT, AL FANSLER AND SON TIM. TRUE VALUE 2013 ANNUAL REPORT 19

  • Page 22
    ..., Rapid True Value must grow by taking market share. "We must be innovative," says Andrea Coy, Chief Executive Officer of the retailer. "We must provide the latest products. But even more important, we must provide solutions. That means different things to different customers." From supplying...

  • Page 23
    JACQULINE WEDDERBURN (LEFT) AND ANDREA COY (IN BLUE), AND THE RAPID TRUE VALUE LANE PLAZA TEAM. TRUE VALUE 2013 ANNUAL REPORT 21

  • Page 24
    ... True Value's assortment of Weber products is among the deepest in North America. Weber's commitment to customer experience is perfectly aligned with where we're going. The Weber brand is an icon, synonymous with quality and category leadership. But quality is only part of the story. "Our mission...

  • Page 25
    KELSEY HEIDKAMP LEADS PRODUCT TRAINING WITH MEMBERS OF THE WEBER SALES TEAM. TRUE VALUE 2013 ANNUAL REPORT 23

  • Page 26
    ... "The value of change? Change is how we keep growing and competing." ALICIA CORONA MERCHANDISE HANDLER RDC, CLEVELAND "We take great pride in getting product to our retailers safely and in perfect condition." MARK MOLINA AND JAMES HEADEN DRIVERS RDC, ATLANTA 24 TRUE VALUE 2013 ANNUAL REPORT

  • Page 27
    .... That's how I show I care." DEBBIE FOWLER DATA PROCESSING CLERK RDC, ATLANTA "I'm absolutely confident our retailers want to grow. Now is the time to get better-a lot better- at helping them." JOHN HARTMANN PRESIDENT AND CHIEF EXECUTIVE OFFICER RSC, CHICAGO TRUE VALUE 2013 ANNUAL REPORT 25

  • Page 28
    ...Each year at our Spring and Fall Reunion, True Value retailers, suppliers and associates get together to work on a Habitat for Humanity® project- over the past five years alone, we've provided thousands of volunteer hours in community service through this and other volunteer work. Suppliers donate...

  • Page 29
    IMPACT TRUE VALUE 2013 ANNUAL REPORT 27

  • Page 30
    ... Billman's True Value Cut Bank, Mont. Foster True Value Mariposa, Calif. Gibbs True Value Ashland, Ky. Hinton True Value Hinton, Okla. BOARD OF DIRECTORS From left to right: Jared Littmann, Annapolis, Md.1 Thomas Markert, Delray Beach, Fla. 2,8 M. Shân Atkins, Long Grove, Ill. 2,6*,7 James Waters...

  • Page 31
    ... Goodgame Senior Vice President and Chief Merchandising Officer Dave Shadduck Senior Vice President and Chief Financial Officer Eric Lane Vice President, Specialty Business Tim Mills Senior Vice President, Growth John Hartmann President and Chief Executive Officer TRUE VALUE 2013 ANNUAL REPORT...

  • Page 32
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