True Value 2014 Annual Report Download - page 12

10 TRUE VALUE 2014 ANNUAL REPORT
This is transformational change
Transformational change is defined by change
across every corner of an organization, occurring
rapidly and simultaneously to drive quantum
leaps forward. This multitude of well-coordinated
activities is expressed perfectly in the “learning
maps” we included in this year’s annual report.
In 2014 we accomplished exactly what we planned
to accomplish. We spent the first half of the year
going through the process of developing the
strategic framework and finalizing the plan; the
second half launching the first initiatives. True
to the definition of transformative change, those
initiatives stretch across the entire True Value
enterprise and will eventually touch everything we
do on a daily basis.
Solid co-op performance during
the transition
As we invested the time, eort and resources to
develop our strategic plan, we are very pleased to
say that we kept our eye on the ball in our day-to-
day operations. Our 2014 sales results were solid
and significantly improved over last year. In fact,
the co-op had its best sales year in 20 years.
DTV retail comp store sales were up 4.8 percent
and overall comp store sales were up 3.1 percent.
We achieved total gross billings of $2.0 billion, an
increase of 6.0 percent. Our sales performance was
remarkable and demonstrated how the strategic
plan is already driving growth. Over the next few
years, we will be making investments to build the
co-op for long-term success—the 2014 patronage
dividend, issued in March of 2015, was $41.1 million.
Our conversion team had a record year attracting
new members to the co-op, signing a total of
74 new members during the year, representing
more than $26 million in new annualized handled
business. Because these conversions come from
competing cooperatives, it reinforces our belief
that True Value programs are among the best
in the industry. Equally exciting is the fact that
our new-member pipeline is stronger than it’s
ever been as we begin the execution of the new
strategic plan. These are very positive indicators
that the best is yet to come.
It was a good year for DTV implementations as
well. With co-op support, True Value members
planned and completed nearly 1 million square
feet of DTV and relevant retail space in 2014. We
have aggressive plans going forward for increasing
DTV implementation through remodels, branch
expansions and new stores.
We completed a full review of the DTV program
in 2014 and have made changes to eliminate
“format arrogance” and make DTV more flexible,
aordable and attractive to our members than
ever before. This is especially important for the
substantial number of members who have not
refreshed their store format in as long as a decade.
JOHN R. HARTMANN (LEFT)
AND BRENT A. BURGER
Dear True Value colleagues:
We have fulfilled our first commitment. We have developed and launched our
long-term strategic plan for growing a True Value we can all be proud to be a
part of. It’s a major accomplishment, and we thank you all for the part you played.
But it’s just the first step in a challenging—and exciting—journey together.
Now, we begin.
TO OUR MEMBERS, SUPPLY PARTNERS AND ASSOCIATES