True Value shows an aggressive side
Denver -- During the True Value General Session here, with the co-op presenting details of its much-anticipated strategic plan, president and CEO John Hartmann painted a picture of the company building on the principles of “engagement,” “growth” and “efficiency.”
Among the keys to the co-op’s strategy are a heavy dose of national advertising and a move away from opening-price point merchandising – just two of a list of top 30 prioritized initiatives that resulted from a lengthy strategic planning process.
“Each of these initiatives fits into one of our strategic pillars and collectively, they have been sequenced in how they will rollout, starting now and over the next five years,” Hartmann told a crowd of 4,000 people assembled in the Bellco Theater of the Colorado Convention Center.
Hartmann said the “aggressive” plan calls for growth from the current level of $2 billion to $3 billion by the end of 2020.
Retailers interviewed by HCN seemed particularly excited about the boost in national advertising from 8 weeks to 21 weeks, along with five free circulars – both representing a major change for the company.
“I like the new direction,” said Jeff Gutierrez of Placerville Hardware in Placerville, California. “John has a lot of fire, and it’s exciting to see where this is going to go. Obviously I like the advertising. I think it’s going to propel us to be more united, which I really like.”
“I was happy to hear about the advertising for national branding and the support for the stores with circulars,” said Ryan Clavier, Hatt’s True Value & Industrial Supply, Thorndale, Pennsylvania. “We don’t want to be number three anymore as a co-op. We want to be number one.“
Other initiatives include elevating the power of the True Value Loyalty program; providing more effective training; more flexible remodeling programs to encourage growth; and investments in technology to boost efficiency.
In an interview with HCN, Hartmann said: “I think the number one takeaway for our retailers is that we have a very clear and concise direction for the company.”