TV down slightly in Q2

Chicago-based co-op True Value Co. reported second-quarter net income of $26.2 million, down 5.8% from $27.8 million reported for the same period last year.

Sales for the quarter ended July 3 were $527.5 million, a decrease of 2.4% from $540.7 million reported for the same period in 2009.

The co-op said waning consumer confidence affected retail sales for the first half of the year, and left retail member’s sales essentially flat.

“Our retailers are still being cautious about their inventory investment as a means to manage cash flow. Both of these factors have had a negative impact on sales volume,”said Lyle Heidemann, president and CEO. 

The co-op also said that declines in profit were the result of slightly lower sales volume and the increase in the number of items included in promotional sales events, in an attempt to drive consumer traffic into True Value retailers’ stores.

“In spite of the economy, our retailers are continuing to invest in their stores,” Heidemann said. “Our retailers have implemented approximately 460,000 sq. ft. of selling space with the Destination True Value format so far this year. At this rate, True Value is set to double our 2009 square footage of approximately 470,000 sq. ft.”