Co-op sees value in rental brand consolidation

True Value Company executives say their move to create one unifying "True Value Rental" brand -- to replace three others -- will provide marketing muscle for the rental business.

And whether it's bouncy houses for toddlers or jackhammers for builders, executives at the Chicago-based co-op believe there's opportunity for the business to grow in the independent hardware channel.

The co-op introduced its True Value Rental brand at its Reunion in Houston earlier this year. The new brand will replace the in-store Just Ask Rental brand, as well as True Value's stand-alone rental store brands -- Taylor Rental and Grand Rental Station. The current structure of multiple brands was born from co-op mergers from decades ago, a relic from the ServiStar days. And after recently studying customer perceptions and awareness, a decision was made to simplify and unify.

  While the three brands had "decent" awareness on their own, he said, there was little connection -- or synergy -- among the three, or with the True Value brand and its national promotions. The consolidation of brands was done in the spirit of strengthening the rental business, said Eric Lane, VP strategic and specialty accounts. "Going into one brand would make this easier for us," he said.

The change has begun, but won't happen overnight. 

"We will help them switch over," said Lane. "And we will deliver more value to those stores once they make the switch."

According to Dave Feuerhelm, business manager for True Value Rental, dealers that operate Just Ask Rental departments inside their stores have begun the transition. The co-op hopes to have new branding completed for most of these departments this year. For the free-standing Taylor Rental and Grand Central Rental, the target is 2018.

Meanwhile, both executives point to the rental business as an area of opportunity for the independent retailer, who is positioned to capitalize on traffic from contractors and homeowners, as well as find incremental sales on items related to the rental.

Some stores excel at heavy-duty equipment, others at party suppliers -- from basic tents and tables to vintage photo booths to high-end video game trailers.

One important piece of advice: Put someone in charge who knows the equipment and knows the business. Other keys that allow a store to excel at rental are the same that allow it to excel at retail in general, Feurhelm said. "They have passion for the business," he said. "They're aggressive. They stock the products the customers want. And they make the experience a good experience for the consumer."