True Value 2011 Annual Report Download - page 7

As Sample prepared to open his second True Value, he knew nailing the approach
was key. Seeking a departure from his existing lumber and home center, Corry Lumber
& True Value, Sample envisioned a DIY-focused hardware store 30 miles down the
road in Titusville, Pa., run by a top-notch store manager, Dan Donahue. But there
was a problem: The town had already seen three independent hardware stores come
and go. Before making a large investment, Sample wanted assurance that his store
would succeed.
True Value retail consultant Mark Dierdorf and business development consultant
Frank Butler researched the Titusville demographics — and confirmed the town could
support an independent hardware store. A visit to the Cary, Ill., “store on the floor”
with Dierdorf and store planning manager George Zimmermann convinced Sample
that for a store to work in Titusville, it had to be DTV. The merchandising team guided
Sample throughout the process: gutting the 12,000-square-foot store, designing the
layout and training in-store associates.
Titusville True Value Hardware surpassed expectations by a staggering 40 percent
its first year. The store opened in May 2010, hit the projected $1 million by December
and completed one full year in business with $1.4 million in sales. “Customers thank
us for bringing the store to town,” said Sample. “They like shopping local and trust
the True Value brand.” In fact, customers responded so enthusiastically that the
following year Sample converted his original store, Corry Lumber & True Value, to DTV.
CHALLENGESTRATEGYRESULT
CASE STUDY 03
NAILING THE IN-STORE EXPERIENCE
Contemporary decor, up-to-date product assortments and inspiration centers are just
some of the proven sales- and traffic-driving features of Destination True Value, the
co-op’s state-of-the-art retail format. Since DTV’s launch, 230 True Value retailers have
either opened a DTV location, remodeled or incorporated DTV elements in their stores.
Innovative planograms, attractive signage and a shoppable store layout reflect the science
behind creating a positive customer experience.
“Once you prove yourself to people, they keep coming back,” said Dave Sample, a True Value
retailer from Corry, Pa. “Our customers are tremendously receptive to DTV.”
On average, DTV stores’ sales outperform non-DTV stores by 8 to 10 percent the first year.
Retailers are responding: True Value added just over 1 million square feet of DTV in 2011 —
a more than 13 percent increase over the previous year.
Synonymous with DTV is the step-by-step guidance provided to retailers adopting DTV.
Whether it’s securing a True Value loan or preparing for a grand opening, retailers rely on
the expertise and experience of True Value co-op associates.
DTV answered Sample’s vision for a store DIY customers would love.
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TRUE VALUE ADDED OVER 1 MILLION
SQUARE FEET OF DTV IN 2011.
With e-commerce representing 4.6 percent of U.S. retail sales, True Value’s
e-commerce program, including the mobile site launched in 2011, positions
its nearly 2,000 participating stores to capitalize on the estimated $200 billion
in online revenue generated this year.
TrueValue.com purchases run about three times greater than the average
in-store ticket. Most online shoppers ship purchases to a local True Value, driving
store traffic. Once in the store, many shoppers buy additional items. Free sign-up
and quick online certification help retailers reap the rewards of e-commerce.
E-COMMERCE
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ANNUAL REPORT 2011 1110 TRUE VALUE COMPANY