True Value 2012 Annual Report Download

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2012 A N N UA L R E PO RT
MORE
THAN A HARDWARE STORE.

Table of contents

  • Page 1
    MORE THAN A HARDWARE STORE. 2 01 2 A N N U A L R E P O R T

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  • Page 3
    ... to this trend. A growing percentage of our customers are women and members of younger generations who have a different idea of what a hardware store should be. THEY WANT MORE THAN A HARDWARE STORE. TOGETHER, TRUE VALUE COMPANY AND ITS RETAILERS ARE DELIVERING IT. TRUE VALUE 2012 ANNUAL REPORT 1

  • Page 4
    ... VALUE HARDWARE PROJECT TYPE: New store LOCATION: Hinton, Okla. FOOTPRINT: 12,000 sq ft GRAND OPENING: March 2012 PROGRAMS: • True Value Circulars • True Value Credit Card • True Value Gift Cards • True Value Rewards • TrueValue.com: Ship-to-Store • TruSite: Local Store Website...

  • Page 5
    "WE HAVE WOMEN COME IN, GRAB A BASKET OR CART, AND SPEND TIME SHOPPING. WE DIDN'T SEE THAT BEFORE." DEWAYNE TRIPP TRUE VALUE 2012 ANNUAL REPORT 3

  • Page 6
    ... a movie: 'If you build it, they will come.' Well, that's what's been happening." The new store has far surpassed expectations, with sales exceeding plan by 50 percent in its first year. Since the grand opening in March "I JUST LOVE HELPING PEOPLE SOLVE PROBLEMS." 4 TRUE VALUE 2012 ANNUAL REPORT

  • Page 7
    ... SHOPPERS AND CONTRACTOR BUSINESS FROM MILES AROUND. THE DTV FORMAT GAVE OWNER DEWAYNE TRIPP AND HIS TEAM TOTAL FLEXIBILITY TO CHOOSE THE ASSORTMENTS THAT BEST SERVE HIS CUSTOMERS. THE NEW STORE HAS SEEN A DRAMATIC INCREASE IN FEMALE SHOPPERS, WHICH HAS CONTRIBUTED TO FIRST-YEAR SALES THAT FAR...

  • Page 8
    ...'S TRUE VALUE HARDWARE PROJECT TYPE: Branch LOCATION: Independence, Kan. FOOTPRINT: 13,278 sq ft OPENED: October 2012 PROGRAMS: • Just Ask Rental • True Value Circulars • True Value Credit Card • True Value Gift Cards • True Value Rewards • TrueValue.com: Ship-to-Store...

  • Page 9
    TRUE VALUE 2012 ANNUAL REPORT 7

  • Page 10
    ...through line item by line item. True Value has done the research. They know what will sell." Joe adds, "We took full advantage of the free opening stock program. That made a big difference. We didn't want to borrow for the 8 "OUR AVERAGE TRANSACTION SIZE REALLY GREW." TRUE VALUE 2012 ANNUAL REPORT

  • Page 11
    ...: THE NEW STOREFRONT IN INDEPENDENCE, KAN., CONVEYS A CLEAN, MODERN IMAGE, WHICH MAXIMIZES TRUE VALUE'S ICONIC BRAND POWER. THE DTV FORMAT GAVE THE RETAILERS THE FREEDOM TO CHOOSE ASSORTMENTS TAILORED TO WHAT SHOPPERS ARE LOOKING FOR, SUCH AS INTERIOR LIGHTING FIXTURES. WITH DTV, THE STORE IS OPEN...

  • Page 12
    ... VALUE HARDWARE PROJECT TYPE: New store LOCATION: Elmwood, Ill. FOOTPRINT: 2,400 sq ft retail OPENED: April 2012 PROGRAMS: • True Value Circulars • True Value Credit Card • True Value Gardens • True Value Gift Cards • TrueValue.com: Ship-to-Store • TruSite: Local Store Website...

  • Page 13
    TRUE VALUE 2012 ANNUAL REPORT 11

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    ... good and it's easy to find things. It was easily adaptable to the location's unique footprint. And I built a wrought-iron fence to utilize outdoor space on the site. People tell me it shops like a mini-big box!" "THE FENCE GAVE ME LOTS OF OUTDOOR RETAIL SPACE." 12 TRUE VALUE 2012 ANNUAL REPORT

  • Page 15
    ... UNIQUE L-SHAPED SPACE IS INVITING, WELL-ORGANIZED AND SHOPS LIKE A "MINI-BIG BOX," AS SARAH DESCRIBES IT. PLENTY OF ENCLOSED OUTDOOR SPACE GIVES SARAH THE OPPORTUNITY TO SELL GARDEN PLANTS IN THE SPRING AND SUMMER, CHRISTMAS TREES IN THE WINTER. INGENIOUS USE OF 27 SLIDING PANELS MAXIMIZES DISPLAY...

  • Page 16
    "WE INVESTED IN OUR FIRST DTV REMODEL IN A TOUGH ECONOMY. IT'S PAYING OFF NOW." LINDA AND SCOTT KUENNING 14 TRUE VALUE 2012 ANNUAL REPORT

  • Page 17
    ... store LOCATIONS: Minster, St. Henry PROGRAMS: and Wapakoneta, Ohio FOOTPRINTS: 40,000 sq ft, 11,500 sq ft, 11,500 sq ft • Just Ask Rental • True Value Circulars • True Value Credit Card • True Value Gift Card • True Value Rewards • TrueValue.com: Ship-to-Store...

  • Page 18
    ... the best buying power we can possibly have. That means more stores." Scott and Linda see building value as a continuous process. In recent years, DTV has been key to keeping the stores current. They implemented DTV at the St. Henry store in 2009 and at the Minster store in 2011. "As a woman, I love...

  • Page 19
    ...: WESTERN OHIO TRUE VALUE'S STOREFRONTS ARE AN EXCELLENT EXAMPLE OF HOW TO APPLY THE TRUE VALUE BRAND - CLEAN, SIMPLE, POWERFUL. WORK WEAR IS A POPULAR ASSORTMENT FOR THE STORES. DTV'S OPEN, FLEXIBLE FLOOR PLAN PROVIDES AN IDEAL SPACE TO DISPLAY SEASONAL MERCHANDISE SUCH AS HIGH-END OUTDOOR GRILLS...

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    18

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    ... CITY. WE'VE BEEN DOING BUSINESS IN METRO DETROIT FOR 26 YEARS. WE SEE THE POTENTIAL." STEVE AND ALAN MANSOUR SNAPSHOT AAA TRUE VALUE HARDWARE PROJECT TYPE: New store FOOTPRINT: 8,500 sq ft retail OPENING: Planned for branch LOCATION: Detroit, Mich. Summer 2013 TRUE VALUE 2012 ANNUAL REPORT...

  • Page 22
    ... brothers The new store will be in Livernois, a Detroit neighborhood, in a building that stood vacant for 17 years. Why stay in the city? The brothers' passion shows in Steve's answer. "We grew up here. Many merchants have left for the suburbs, and people know it. They come in here with big smiles...

  • Page 23
    ... 17 YEARS, THE SITE FOR THE NEW STORE HAD LONG BEEN AN EYESORE IN THE NEIGHBORHOOD. THE NEW SPACE WILL BENEFIT FROM THE FLEXIBILITY DTV'S NEW SMALLER FOOTPRINT PROVIDES. WHEN COMPLETE, BOTH THE MANSOURS AND THE LIVERNOIS COMMUNITY BELIEVE THE MODERN, ATTRACTIVE NEW AAA TRUE VALUE HARDWARE STORE WILL...

  • Page 24
    ... $ IN MILLIONS $155.7 "WE'RE INVESTING IN OUR RETAILERS' SUCCESS WITH PRICE ROLL-BACKS, FINANCING SUPPORT, CONSISTENT PATRONAGE DIVIDENDS AND GREAT PROGRAMS LIKE FREE OPENING INVENTORY." DAVE SHADDUCK, CHIEF FINANCIAL OFFICER $151.5 $146.7 2010 2011 2012 22 TRUE VALUE 2012 ANNUAL REPORT

  • Page 25
    ... it comes to co-op partners, and they choose True Value. We are committed to continuing to earn your business with a growing array of tools and support, led by the industry's best store format, DTV. STRONG PERFORMANCE AND RETURNS True We grew our sales, invested in our business and provided good...

  • Page 26
    ... retailer's handled purchases. We cut the cost of our True Value Rewards loyalty program in half, and in March 2012 we paid $7.5 million in notes nine months ahead of schedule to provide our members with additional funds for the critical spring buy. GROWTH IN A CHANGING WORLD As proud as from what...

  • Page 27
    TRUE VALUE 2012 ANNUAL REPORT 25

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    ... four years. Brian A. Webb Chairman of the Board Lyle G. Heidemann President and Chief Executive Officer VALUES MATTER AT TRUE VALUE Our mission is to be a world-class wholesaler with a strong retail focus, growing profitably. Our vision is to help every True Value be the best hardware store in...

  • Page 29
    ... of 5 percent in 2012. PRICE. Helping our retailers compete and offer • Retail sales of True Value paint increased 7.7 percent in 2012, thanks to promotions like the Memorial Day "buy one, get one free." • On average, stores participating in all national circulars in 2012 realized $87,000 in...

  • Page 30
    ... GIFT CARDS Excellent contemporary store format to drive growth. Designed to attract female and younger shoppers while delighting the traditional hardware customer. TRUEVALUE.COM: SHIP-TO-STORE Easy incremental sales driver, especially during the holidays. TRUE VALUE REWARDS A great way to build...

  • Page 31
    ...store training and Learning Resource Center online portal. TRUE VALUE PRIVATE BRANDS Excellent high- margin sales driver - EasyCare, Green Thumb, Master Mechanic, Baypointe and more. CIRCULARS A variety of sale formats, from coupon books to short-duration holiday/ seasonal events to rebate events...

  • Page 32
    ...the community. Each year at Spring and Fall Market meetings, our retailers, suppliers and associates work with Habitat for Humanity to help build affordable housing for local residents. "IT'S MORE THAN PAINT. IT'S POSITIVE CHANGE." LYNNE FRAINO, KELLY'S TRUE VALUE 30 TRUE VALUE 2012 ANNUAL REPORT

  • Page 33
    ...BUDGET BUILD HOME CENTER TRUE VALUE: GLAD THEY SWITCHED Hear the ways Denney and Carole Braswell have taken their hardware business to the next level of growth with True Value after 15 years of working with another supplier. WESTERN OHIO TRUE VALUE: GROWING FOR THE NEXT GENERATION Learn how Scott...

  • Page 34
    ..., Fennville, Mich.2,6,8* DIRECTOR DESIGNATIONS 2012 1 STORE OWNER 2 OUTSIDE DIRECTOR 3 CHIEF EXECUTIVE OFFICER 4 BOARD CHAIR 5 BOARD VICE-CHAIR BOARD COMMITTEES 2012 6 AUDIT COMMITTEE 7 COMPENSATION COMMITTEE 8 CORPORATE GOVERNANCE COMMITTEE * COMMITTEE CHAIR 32 TRUE VALUE 2012 ANNUAL REPORT

  • Page 35
    ... Fohl Vice President, Marketing, Chief Customer Officer "VERSATILITY IN A TOOL COUNTS. " Mike Clark Senior Vice President, Chief Merchandising Officer "ONLY THE BEST FOR MY DOG SMOKEY." Cathy Anderson Senior Vice President, Human Resources, General Counsel and Secretary "I LOVE WORKING ON CLASSIC...

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  • Page 37
    ... THE BEST AT DELIVERING MORE IN 2012 The Best Hardware Store in Town award recognizes True Value retailers who exemplify success and excellence based on the Five Ps of retailing : People, Place, Price, Product and Promotion. Design: Avila Creative, Inc. Editorial: Ted Stoik Primary Photography...

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