True Value 2009 Annual Report Download - page 4

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2 True Value Company 2009 Annual Report
•
Place: Continuing to support DTV projects, including more than 50 new
store openings, existing store expansions, relocations and remodels in
2009 – a testament to the format’s success, even in a tough economy.
•
Promotion: Increasing consumer interest in True Value by aggressively
marketing four national promotional events that drove store visits and
increased promoted item sales by 300 percent or more.
• Product: Arming retailers with consumer-driven assortments and in-store
merchandising direction that include end caps necessary to seize the sale.
Informed by POS data from more than 1,600 stores, the DTV core retail
assortments reflect the right products presented in effective planograms.
• Price: Pricing highly visible items to create value for consumers while
delivering strong margins to retailers with the Retail Price Enhancement
program, our good-better-best trade-up strategy reassures consumers
that they make the right choice when they shop at True Value.
PROFITABLE GROWTH
While many retailers in 2009 cut back on growth or reduced square footage,
True Value didn’t. In fact, True Value retailers continued to grow the DTV footprint.
More than 50 DTV projects are in the pipeline for 2010 as retailers take advantage
of co-op retail growth funds. Retailers that opened new and remodeled DTV
stores in 2009 also experienced growth, as point-of-sale data show a 10 percent
average sales increase compared to all non-DTV stores’ sales.
We’re achieving these retail milestones by providing direction and solutions
proven to increase our retailers’ sales and their return on investment. These
include national advertising and circulars designed to drive the door and POS-
derived customer insights that inform our inventory management, merchandising
and marketing strategies. True Value is investing in tools to increase our retailers’
sales, set our brand apart and deliver top- and bottom-line results.
2010 OUTLOOK
We approach 2010 with cautious optimism. As we work together to achieve
continued profitable growth, we must be aggressive with marketing, fulfill our
LYLE G. HEIDEMANN AND BRIAN A. WEBB