True Value 2009 Annual Report Download - page 11

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“ Shoppers love the new store format. We hear positive customer
feedback every day on the store’s inviting layout and the variety of
products we carry. Customer count and sales are also up – our
parking lot hasn’t looked this full in years!”
Candy Gutierrez, True Value Hardware
Meet Dave and Candy Gutierrez, owners of Placerville, Calif.-based True Value
Hardware. You would never guess, but when the couple purchased an existing
store in 1979, they had zero retail experience. Pursuing their dream to own a
business and escape city life, the couple moved with their three young children
to open up shop in the foothills of northern California.
Over the years, the store did well. But by 2007, the 14,000-square-foot space
needed a fresh look. And with five other hardware stores within a 10-mile radius,
competition was fierce. The Gutierrezes knew staying in business meant improving
profitability, boosting store traffic and updating product assortments. DTV seemed
like the perfect solution, but they weren’t sure a remodel was in the budget.
That’s where True Value offered support. A $150,000 loan made a DTV
transformation manageable. And, the co-op even bought back $25,000 in
slow-selling merchandise. Knowing there would be guidance every step of
the way, Dave and Candy began the remodel.
On-site support from merchandising teams and project managers allowed
the Gutierrezes to run their business and oversee the three-month remodel.
Increased lighting dramatically improved the store ambiance. By relocating
and remerchandising their Just Ask Rental Department, the couple gained
2,000 square feet for 9,000 new products and a more shopper-friendly layout.
What’s more, sales weren’t adversely affected during the process – the remodel
proved to customers that the Gutierrezes were investing in their business and
were there to stay.
Despite pouring rain, more than 900 people shopped True Value Hardware’s
grand reopening within the first two days. Customers thought the store
expanded in size and praised the store’s appearance and product selection.
Since the remodel, store sales are up 8-10 percent or better, and a surprise
snowstorm sent December sales soaring 30 percent, as customers lined up to
buy shovels, kerosene heaters and insulation. Now that’s proof True Value
Hardware is a destination for the Placerville community.
BEHIND THE SCENES AT TRUE VALUE HARDWARE
True Value Company 2009 Annual Report 15