True Value 2010 Annual Report Download - page 14

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Alan Koenig, owner of A&K True Value of St. Genevieve,
Mo., immediately inquired about a model store when he
joined the co-op in 2000.
When DTV was introduced, Koenig knew it was right for his
store, as he felt limited on how to utilize his retail space ef-
fectively. The primary concern: funding. After working with
his retail consultant, Dave Smith, Koenig was able to secure
a loan from True Value.
Koenig began remodeling his 12,000-square-foot store in
November 2008, leveraging a five-year loan from True Value.
In Koenig’s words, it was the biggest and best offer
available anywhere.
“I don’t understand why some stores are hesitant to adopt
DTV. Nowhere will you find money this cheap,” Koenig
said. “The carrot True Value has held out in front of us is
phenomenal.” And True Value’s offer has since improved.
Koenig’s DTV store opened in June 2009, drawing an 11 to
15 percent sales increase. This increase is in line with the
other stores that remodeled in 2008 and 2009, which out-
performed non-DTV stores by more than 9 percent during
their first 12 months.
INVESTING IN THE FUTURE: DESTINATION TRUE VALUE
Despite the economy, A&K True Value saw a 2.5 percent
sales increase in 2010, outperforming the local market.
Koenig credits True Value for equipping him with the right
look and merchandise to meet his customers’ DIY needs.
The DTV format not only drove store traffic, but turned
many first-time shoppers into regular customers.
DTV retailer Bob Conyers also
took advantage of True Value’s
financial assistance when he re-
modeled his 5,000-square-foot
store, Conyers True Value, in
Manchester, Conn. And the re-
sults prove the format drives
sales in smaller stores as well.
“After remodeling we hoped for a 10 percent sales increase,
but it’s closer to 25 percent. And without the co-op financing,
I couldn’t have done it,” Conyers said.
With strong sales growth and increased profit margins
on product assortments, DTV remodel stores generate
an average return on investment in 36 to 42 months.
Whether a ground-up, remodel or conversion, DTV stores
demonstrate results.
9%
IN THE FIRST YEAR
DTV OUTPERFORMED
NON-DTV STORES BY
DTV is exible and enables retailers to t
non-core departments into the strong
merchandising layout the format provides.
For example, A&K True Value in Sainte
Genevieve, Mo., was able to retain its
successful in-store Radio Shack franchise
as part of its recent DTV remodel.
12 TRUE VALUE COMPANY