Aggressive advice in Utah

Salt Lake City -- True Value president and CEO Lyle Heidemann had a simple message for those members who gathered here for the co-op’s fall market: Don’t hold back.

“Take advantage of your competition as they wait for the economy to get better,” Heidemann advised retailers during the general session on Oct. 2. “Stay aggressive.”

Heidemann advised retailers to update the look of their stores and resist the urge to cut back on inventory. Customers are put off by empty peg hooks, he said, and most of today’s homeowners are looking for bargains. Holiday promotions and coupon-redemption programs will appeal to cost-conscious shoppers, who still have money to spend.

“We should see a slight increase in sales in this Christmas season,” Heidemann said. Although True Value’s co-op’s wholesale sales have declined 3% over the past 12 months, and comp sales for core retail stores decreased 1.1%, Heidemann said the co-op “is confident that we can deliver a comparable [patronage] dividend to last year.”

Brian Webb, who serves as True Value’s chairman, reminded his fellow dealers that the green movement contains opportunities for smaller independents. Participating in community events can reinforce a store’s brand and tap into the prevailing “buy local” sentiment, he observed. A bumper crop of novice DIYers are also looking for expert advice, which True Value retailers are well-positioned to offer, Webb noted.

VP marketing Carol Wentworth reported on the results of True Value’s national advertising campaign, which links a “Master of All Things Hardwarian” theme with price-specific item promotions. Wentworth also reported on a multi-pronged effort to reach younger customers. A Web-based “new mover” program with the U.S. Post office is being tested, and advertising resources are being shifted to cable networks, Web sites and magazines, as well as social media. The co-op is also working on improving the “Tru-Site” platform used by dealers to create their own Web sites.

Mike Clark, senior VP and chief merchandising officer, announced that the co-op will begin shipping spring 2010 merchandise earlier this season, in December 2009, to give members in warmer climates sufficient time to set up their displays. Lawn and garden was a dominant category on the show floor, with many retailers getting their first look at the co-op’s new eco-friendly planograms and endcaps.

One item that garnished a lot of attention was a six-foot diameter wind turbine, designed for residential use, which can start producing energy at two miles per hour. Made by Honeywell and marketed by WindTronics, the product is expected to sell for about $6,000.

The three-day market, held at the Salt Palace Convention Center, ended Oct. 4.