True Value's 2010 Annual Report looks ahead
In addition to glossy case studies of growing members, Chicago-based True Value Co.'s freshly released 2010 Annual Report forecasts a sixth straight "consistent patronage dividend" in 2011.
The report's letter to retailers, co-signed by CEO Lyle Heidemann and chairman Brian Webb, also forecasts about 40 line reviews this year. Another forecast is for an additional 1.25 million sq. ft. of Destination True Value retail space, up from the 900,000 sq. ft. that was added in 2010.
Destination True Value -- or DTV -- is the co-op's high-performance concept store that, once again, figured prominently in the True Value Annual Report. In addition to before-and-after redesign photos, the report promotes DTV facts such as: "DTV outperformed non-DTV stores by 9% in the first year," and "True Value Co. loaned more than $8 million for new and remodeled DTV stores in 2010."
Profiles of Nuts and Bolts Hardware in Overland Park, Kan., and Prairie Side True Value of Kenosha, Wis., focused on the appeal of the DTV format.
Earlier this year, the company reported wholesale revenues of $1.804 billion in the year ended Jan. 1, 2011. That's down 1.1% from $1.823 billion in the previous year. On a comparable-store basis, sales were up 0.3%.
"At the outset of 2011, we grow increasingly hopeful that consumer confidence will improve as the year progresses," reads the co-op's letter to retailers. "However, we take nothing for granted, as we know consumers will remain staunchly value-focused and somewhat conservative in their spending."
As a result, the co-op said it intends to maintain an aggressive approach to marketing.
Patronage dividends related to the year ended Jan. 1, 2011, were $57.1 million, compared with $57.3 million in the prior year.