True Value spring market held in New Orleans

New Orleans -- True Value executives urged co-op members to seize opportunities in the down economy in order to “stand out from the competition,” during the 2009 spring market held March 27 to 29 in New Orleans.

“Many of our competitors will be making cutbacks in marketing, customer service, inventory levels and store cleanliness -- all things that make first and lasting impressions,” Lyle Heidemann told the retailers gathered during the market’s opening session on March 27. “Don’t fall into the same trap. Remember, we actually have an opportunity to grow and increase market share during an economic slowdown.”

True Value also continues to promote growth through the Destination True Value model, and the co-op is upping the ante for those considering a new DTV store, expansion or remodel. It was announced at the market that the co-op is increasing funding on new stores from $15 to $25 a square foot and raising the cap from $300,000 to $400,000. On expansions or remodels, the program has changed from a 50/50 percent equity match loan on capital items with a cap of $75,000 to a 75/25 percent loan of the total expense capped at $150,000.

In addition, VP marketing Carol Wentworth unveiled two new 30-second TV spots, while also explaining new promotions and print buys. She urged members to participate in such promotions as the “$5 off $25” coupon and “50% off any item under $50,” the latter of which ran during Thanksgiving weekend 2008 and brought the following results: Stores that participated saw sales increase by 20% over the prior year, compared to a 1% increase for the entire retail industry that weekend, she said.

“Our goal is to provide extra incentive to shop True Value at times when customers are most likely to be in the market for our core products,” Wentworth said.

Rodney and Glenda Kassab, owners of Saucon True Value in Hellertown, Pa., continue to send out circulars and advertise locally, offering coupons and other specials. They agree that a hardware store can actually benefit in a tough economy.

“When the economy goes down, people come to the hardware store more often,” Rodney Kassab said. “Contractors tend to shop at the big boxes, but when people do it themselves, they tend to go to the hardware store for help.”

JB Zimmerman True Value in Blue Ball, Pa., was one of 13 “Best Hardware Store in Town” winners recognized at the market. Co-owner Linda Weaver said they have increased their advertising spend in recent months, and the strategy is working.

“We’re always asking how we can make things better for the customer, increase basket size and get our transactions and foot traffic up,” she said. “People are staying closer to home, and that’s helping us.”