True Value 2007 Annual Report Download - page 14

14 | 2007 ANNUAL REPORT
TRUE VALUE COMPANY
GROWING OUR BUSINESS AND ASSOCIATES
When you grow, we all grow. It’s that simple. At True Value, profi table retail growth drives the entire organization
and is what we help our members achieve within their businesses. We’re committed to helping our members grow
their bottom line. Over the last year, True Value reduced the cost of goods and services while maintaining strong
service levels and an acceptable patronage dividend.
One successful program is supply chain optimization, which helps
the co-op drive increased sales, turnover and fi ll rates through more
effective inventory management. With effi ciencies from supply
chain optimization, True Value is working to decrease distribution
and transportation expenses, improve its inventory capacity and
forge stronger supplier relationships to ensure retailers have the
right products at the right time.
Whether it’s stronger marketing plans, adding top national brands
or developing a new retail format to attract and retain customers,
True Value keeps its eye on increasing retailers’ share of the cus-
tomer’s wallet.
However, growing sales is only part of the equation. Increasing
True Value’s retail footprint involves adding profi table selling
space by helping members expand or remodel, as well as provid-
ing guidance and support to make opening new stores possible.
In fall 2007 the co-op introduced loan packages and a variety of
fl exible plans to make square footage-related growth attainable.
Now entering the second year of its three-year commitment to
grow our retail square footage, True Value’s goal is to open 40 new
stores and expand another 20 stores in 2008. This adds up to nearly
one-half-million square feet of retail space and more than $60 mil-
lion in retail sales. The co-op also aims to incorporate various
elements of Destination True Value into more than 1,000 retail
locations across the country by 2010.
Behind every profi table and growing organization is a well-trained
and knowledgeable associate base, and True Value is no exception.
Our people are True Value’s greatest asset. They’re at the core of
our brand and exemplify what the True Value name is all about. As
the co-op continues to grow, we must focus on attracting, retain-
ing and training the best and brightest in our industry.
The customer service that our members provide to their shoppers
is what differentiates the True Value brand. In fact, True Value
retailers were recently recognized by BusinessWeek as a “2008
Customer Service Champ,” a ranking of the best-in-class companies
based on data from consumer researcher J.D. Power & Associates.
The associate team continues its singular focus on serving mem-
bers to help them grow and prosper. Whether at headquarters, an
RDC, or driving a truck, co-op associates channel their energy and
commitment to help retailers provide the best product at the best
possible price within the best possible store environment to cus-
tomers. This year, the co-op continued focusing on attracting top
talent by introducing a college-recruitment program to fi nd top
inventory planners for our supply chain organization.
Ongoing, comprehensive training across departments and set-
tings keeps employees on the cutting edge of industry trends,
technology and best practices. True Value University’s member
and associate interactive professional development portal, the
Learning Resource Center, continued to grow and improve over
the past year. The team identifi ed key training needs across the
co-op and added an “HR Toolkit” that guides members through
developing an effective compensation plan – from writing thor-
ough job descriptions to establishing pay levels and pricing each
position appropriately.