True Value reports 2015 sales gains
True Value Company reported its end-of-year results for 2015, highlighting a surge of growth in Destination True Value format stores and growth across a spectrum of product categories.
The Chicago-based co-op also reported an anticipated decrease in net margin to $19.0 million, a decrease driven by investment expense related to the implementation of the company’s strategic plan. In the prior year, the co-op's earnings were $41.1 million.
Destination True Value (DTV) comparable store sales were up 4.7% in 2015, compared with retail comparable store sales up 3.1%. All product categories pushed ahead, especially Farm Ranch Auto & Pet -- up 7.3% -- Lawn & Garden, and Hand & Power Tools.
Last year, True Value also announced a more flexible, affordable DTV to help more members update their stores. In 2015, the company added nearly a million square feet of DTV retail space.
“The momentum we have after implementing DTV has changed our lives and our business,” said CC Gibbs of Gibbs True Value. “We see young people shopping our store rather than going to the big box stores, and we are now more profitable than we ever thought we could be.”
The co-op also logged its fifth consecutive year of increased annual sales, with wholesale comparable store sales up 1.8%.
Total gross billings of $2.03 billion were up 2.0% for the fiscal year ending Jan. 2, 2016.
Revenue came in at $1.50 billion, an increase of 1.3% from the previous year.
“Our 2015 results demonstrate that True Value is investing in the future of the co-op for its members as we continue to focus on the strategic pillars of engagement, growth and efficiency,” said president and CEO John Hartmann.
“There has been a compelling amount of progress made in support of the plan as evidenced by our members’ success,” said Hartmann. “In 2014 and 2015, our growth averaged 3.5% on a gross billings basis—well above the historical levels. And for the five years prior to the start of our plan, retail sales averaged less than one percent. In 2015, retail sales increased 3.1% and DTV stores increased 4.7%. The work we are doing is making a difference and that is where our focus remains.”
These investments have gone toward programs such as Customer Service Training and the rollout of the Roadmap to Retail Excellence, a tool to help diagnose and guide what actions retailers can take to achieve their goals, the co-op said.
Meanwhile, over 1,000 store owners and associates have become "chat" certified via My True Value – A New Customer Experience.
2015 also saw the conversion of a few multi-store chains to True Value, including Busy Beaver, Miami Home Centers and National Lumber.