the value of independence - true value 2016 annual report€¦ · · 2017-05-18the value of...
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We’re proving it as we compete against the big boxes—the independent hardware store has more value than ever. The independent store owner is a person, not a large corporation. The owner is an active part of the community. When a customer speaks, the owner listens.
True Value exists for the local, independent retailer.
At True Value, independence also means freedom. Our retailers design their own stores. Determine their own locations. Make the decisions on which programs work for them. In short, True Value retailers have the freedom to pursue growth on their own terms.
The Value of Independence
About the cover Allen, Tara and son Justin Witherite, owners of Triangle True Value of Bellefonte, Pennsylvania, chose to include major exterior façade work as part of a full DTV remodel. The business saw immediate increases in traffic and sales after DTV completion.
TRUE VALUE 2016 ANNUAL REPORT 1
Independence sets us apart. It’s why we’re winning. And it’s how we’ll win over the long term.
DEAR TRUE VALUE COLLEAGUES: Our transformation continues. In 2016, the second
full year of our strategic plan, we continued to build momentum. The positives are
multiplying. The results are coming.
A MESSAGE TO OUR RETAILERS, VENDORS AND ASSOCIATES
We know achieving higher retail profit and a higher
patronage dividend is crucial, and the good news is
we saw that happening in 2016. We exceeded last
year’s net margin, and our investments are making you
more competitive with advances in key areas such as
customized assortments, paint, brand building and
operations. Here are a few highlights from the year:
CTB SUCCESS As Johnny Boyle, owner of Bandera
True Value in Bandera, Texas, will tell you, our
Customized True Blue (CTB) assortment program
drives significant sales growth. We continue to
expand CTBs with a revamped, faster line review
process that goes beyond products and pricing to
include supply chain, inventory and transportation.
This new approach supports not just growing
sales, but also a stronger True Value and improved
retailer profitability.
RECORD DTV REMODELS Over the past two years,
we have refined our Destination True Value (DTV)
store format to increase its flexibility, and in 2016
our efforts showed in a record number of remodels.
J.C. Crowder and Dave Williams of Crowder Bros.
Hardware in Spring Hill, Florida, told us they are
believers after implementing a DTV remodel which
brought double-digit sales growth in the first year.
TRUE VALUE PAINT INNOVATION AND
PERFORMANCE It was a great year for our paint
business. We bolstered our EasyCare® paint offering
with an expanded product line and the launch of
new DreamWorks Trolls colors. Allen, Tara and Justin
Witherite, owners of Triangle True Value in Bellefonte,
Pennsylvania, were among the many who are using
the Trolls paint program to attract parents whose
young children are fans of the hit movie.
JOHN R. HARTMANN AND BRENT A. BURGER
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Transformation, Year TwoTransformation, Year Two
This is our fundamental, defining
commitment: At True Value,
we’ll never stop assessing our
role and developing innovative
new ways to support our
retailers’ independence, growth
and profitability.
2
TRUE VALUE 2016 ANNUAL REPORT 3
Engagementwith consumers, retailers,
vendors and associates
Growthof your customer base, sales
and profitability
Efficiency to improve our operations
and service levels
The Plan is WorkingOur growing number of accomplishments together, including breaking a 10-year-plus negative growth trend, tells us we’re on the right track with our strategic plan. We’re going to continue to work hard, building on what’s working and changing or eliminating what isn’t.
HISTORICAL NET NEW SALESCO-OP GROWING IN VOLUME ON NET BASIS
$20M$22M
20072005 2010 20112009 20132012
$24M
$50M
$18M$14M
$2M
$21M$21M
$24M
$9M
$31M
2008
2006
2014 2015 2016
4 TRUE VALUE 2016 ANNUAL REPORT
We innovated to strengthen and expand the paint
business for retailers with our new True Value 2-4-1
(two brands, four price points, one color system)
offering, adding premium Coronado® paint to the
portfolio through a new alliance with Benjamin
Moore & Co. in 2016. Where the innovation comes
in: This high-end national paint brand utilizes the
same colorants, chip sets and matching system
as EasyCare®, making it possible for retailers to
add a high-margin paint line at a fraction of the
usual investment.
Our international business delivered strong year-
over-year sales growth of more than 14 percent in
2016, thanks to product improvement and localized
strategies that continue to earn the loyalty of retailers
like Rodrigo Cuarón and his partners at Hágalo True
Value in Juárez City, Mexico.
EXPANDING ONLINE SHOPPING AND FULFILLMENT
OPTIONS Today, almost 90 percent of do-it-
yourselfers visiting TrueValue.com are researching
home improvement projects before driving to a
local store to make their purchases. In 2016, we
improved the TrueValue.com online shopping
experience by enabling our stores to show on-
hand inventory and item availability to consumers.
TrueValue.com sales are up approximately 50
percent year over year with more than 80 percent
of sales being shipped to the consumer’s local True
Value store for pick up, driving new and repeat
customers to participating stores. We’re also
enhancing direct-to-consumer fulfillment options
for all True Value retailers. By retrofitting three
regional distribution centers to focus on direct
shipments to consumers, our retailers will be able
to offer two-day shipping on any orders placed at
their store on behalf of customers.
TRANSPORTATION SAVINGS FOR OUR RETAILERS
Our alliance with Ryder netted big results in 2016.
We achieved on-time delivery of 95 percent, and
we’re projecting retailer freight rate reductions of an
average of 25 basis points for 2017, a collective $3
million in savings to retailers. We also worked with
Ryder to develop a new app that will allow real-time
shipment tracking on a smartphone.
CONTINUED INVESTMENT IN A STRONGER TRUE
VALUE We have transformed True Value from a
status quo company to a forward-looking growth
enterprise determined to do what is necessary
to support retailer relevance and success. 2016
marks the second year of a planned period of
elevated capital investment. Key initiatives include
IT infrastructure and disaster recovery, voice-pick
technology at our distribution centers, and many
others aimed ultimately at increasing capabilities
over the long term.
Dave Williams, General Manager, Crowder Bros. Hardware in Springhill, Florida, says one key goal—and outcome—of the store’s recent DTV remodel was to attract more female shoppers.
Powell’s True Value in Appleton City, Missouri, celebrated the grand re-opening of a new DTV-remodeled store in 2016.
TRUE VALUE 2016 ANNUAL REPORT 5
$41.1†
$13.2 million
cost
$23.2 million
cost
20152014
GROSS BILLINGS* $ IN MILLIONS
REVENUE* $ IN MILLIONS
NET MARGIN $ IN MILLIONS
$2,073.7
2016
$2,014.8
2014 2015
$1,495.0$2,033.2
2014 2015
$1,497.2
2016
* Note: fiscal 2014 figures are based on a 53-week
year, fiscal 2013 and 2015 figures are based on
52-week years
†Including 2014 Strategy Cost
‡Including 2015 Strategy Cost
˚Including 2016 Strategy Cost
$19.0‡
$23.7˚
$18.8 million
cost
2016 Financial HighlightsYEAR-TWO TRANSFORMATION MOMENTUM in 2016 included improved results across important measures of financial success as we met our commitment to delivering an increased cash dividend for the year.
+2.5%Year-Over-Year Growth in Retail Sales, 2016
+2.0%Year-Over-Year Growth in Gross Billings, 2016
~25%Year-Over-Year Growth in Net Margin, 2016
THE VALUE OF TRUE VALUE
($ IN MILLIONS) 2015 2016
PATRONAGE DIVIDEND/CASH $19.0 $21.3
PATRONAGE DIVIDEND/NOTES & STOCK $0.0 $1.8
INTEREST ON NOTES $6.1 $6.0
PROMOTIONAL DISCOUNTS $36.0 $39.8
DATING & ANTICIPATION $17.9 $16.7
REUNION SPIFFS/RACKING $7.8 $8.9
MARKETING REIMBURSEMENTS $10.3 $10.9
GROWTH CREDITS & LOANS $41.0 $42.9
PROMOTIONAL FREIGHT $5.8 $4.9
TOTAL $143.9 $153.2
% OF PURCHASES 7.5% 7.9%
2016
$1,514.1
6 TRUE VALUE 2016 ANNUAL REPORT
STRONG 2016 RESULTS True Value experienced
positive results across the business in 2016. Retail
sales were up by 2.5 percent over 2015, with DTV
stores seeing year-over-year growth of 3.7 percent.
It was a record year for DTV with 101 remodels and 68
ground-up projects completed, representing nearly
1.5 million square feet of fresh, modern retail space.
Next year’s DTV pipeline looks even better, with a
projected 130 remodels and over 70 ground-ups.
We saw a net positive of $31.4 million sales from
new stores to terminations in 2016, the third year in
a row of positive performance in this key measure.
Significantly, the majority of our terminations this
year were store closings.
Total gross billings for 2016 were $2,073.7 million,
up by 2.0 percent over 2015. In the current period
of heavy reinvestment, we were pleased to achieve
an improved net margin of $23.7 million, up by nearly
25 percent year over year. We were equally pleased
to meet our commitment to deliver an increased
dividend in 2016.
A BRIGHT FUTURE FOR TRUE VALUE There is still
plenty of room for improvement, but we’ve already
come a long way in True Value’s transformation. The
organization is stronger than it’s been in decades,
our financials are solid, our programs are working
and our results are steadily improving.
This is an exciting time to be a part of True Value.
We’re looking forward to continuing to prove—and
improve—the value of the independent hardware
store.
Sincerely,
JOHN R. HARTMANN
President and Chief Executive Officer
BRENT A. BURGER
Chairman of the Board
We’re driven to efficiently provide our retailers the products their customers want, at competitive prices that help them grow both sales and profit.
NET MARGIN
THREE-YEAR PERIOD OF SIGNIFICANT
INVESTMENT TO ACCELERATE PERFORMANCE
2013 2014 2015 2016 2017 2018 2019 2020 2021
3-YEAR INITIAL
SIGNIFICANT
INVESTMENT
PROJECTED
PARTICIPATION
MATTERS!
TRUE VALUE 2016 ANNUAL REPORT 7
PROGRAMS DESIGNED TO DRIVE YOUR SUCCESS The numbers tell the story—retailers who participate in True Value programs consistently perform better than those who don’t. Time to get on board!
The Value of ParticipationThe Value of Participation
NATIONAL ADVERTISING EVENTS
+3.0%2016 Avg. True Value Item Retail Sales (Comp Core Stores)
-1.0%2016 Avg. True Value Item Retail Sales (Comp Core Stores)
DESTINATION TRUE VALUE (DTV) +3.7%
2016 Avg. DTV Stores Retail Sales Variance Year Over Year
+1.7%2016 Avg. Non-DTV Retail Sales Variance Year Over Year
CUSTOMIZED TRUE BLUE (CTB)ASSORTMENTS
+4.7%2016 Avg. CTB Stores Retail Sales Variance Year Over Year
+1.8%2016 Avg. Retail Sales Variance Year Over Year (All Stores)
TRUE VALUE REWARDS (TVR) +2.6%
2016 Increase in Median Transactions Per Store
-2.1%2016 Decrease in Median Transactions Per Store
PARTICIPANT PERFORMANCE
NON-PARTICIPANT PERFORMANCE
TRUE VALUETRUE VALUE PROGRAMPROGRAM
8 TRUE VALUE 2016 ANNUAL REPORT
11,000Unique New CTB Assortments
35,000sfof CTB Assortments, Retail Assortments, Specials, Live Product Demos
CTB sales are growingSIMPLIFIED, TRIED AND TRUE Customized True Blue (CTB) assortments continued
to build momentum in 2016 with an improved, streamlined line review process
along with a new implementation guide and a faster, easier implementation tool for
retailers. 2016 results:
Assortment City is here to stayCTB COMES TO FALL REUNION Attendees at our 2016 Fall Reunion got to experience CTB
products and assortments firsthand at Assortment City, our huge dedicated assortment
space. It’s a great way to see and order sales-driving True Value assortments. Look for it at
future Reunions.
FOR CTB PARTICIPANTS:
Power Tool Accessories 3.9%
Tape 16.4%
Garden Sprayers 5.3%
Pool Chemicals 11.5%
TRUE VALUE 2016 ANNUAL REPORT 9
My True Value–A New Customer ExperienceSM Training is paying offThanks in part to My True Value–A New Customer ExperienceSM customer service
training, the company saw some great news in key third-party national rankings for
retailing and customer service.
A NEW Record
101DTV Remodels Completed
A NEW Record
68Ground-Up New Stores Added
Staff and Service Score UP
+28pts.by J.D. Powers
More retailers are implementing DTVDTV MOMENTUM Our highly flexible and successful Destination True Value (DTV)
store modernization program continues to build momentum and retailer sales. There’s
no doubt—remodels work. In 2016, DTV retail comp store sales were up 3.7 percent
compared with non-DTV retail comp store sales of 1.7 percent.
#1 Retailer Ranking by Temkin Group
BEFORE
Triangle True Value’s pre-DTV exterior was
less than inspiring.
AFTER
The DTV remodel included a new
façade—a dramatic difference.
10 TRUE VALUE 2016 ANNUAL REPORT
International Paint Sales UP
11.6%
International Sales UP
14.5%
EasyCare® is better than everEASYCARE REBRAND We continued efforts and initiatives to enhance our already
popular EasyCare® paint offering in 2016. Quality improvements over the last few years
gained recognition:
Color us globalINTERNATIONAL GROWTH Bigger is better for all of us. Increasing international
volume supports better pricing and brand presence overall. By all measures, 2016 was
a great year for the international channel.
Consumer Reports®
TOP 10Quality Ranking
Third-Party Blind Testing
BESTValue Ranking Compared With National Brands
TRUE VALUE 2016 ANNUAL REPORT 11
2 Brands
4 Price Points
1 Color System
CORONADO® FROM BENJAMIN MOORE SHARES SYSTEMS WITH EASYCARE®:
Introducing Coronado® from Benjamin MooreAN INDUSTRY FIRST True Value’s national brand alliance with Benjamin Moore & Co. offers the
opportunity to add a higher-price-point, higher-margin premium paint with unprecedented ease and
economy. This game-changing alliance is True Value innovation at its best—the ability to add a national
paint brand at virtually no incremental cost and within a single color system.
12 TRUE VALUE 2016 ANNUAL REPORT
Fuel Efficiency IMPROVED
6%
2017 Freight Rate DOWN 25 Basis Points, Resulting
in a $3 million Reduction in Retailer Fees
95% On-Time Delivery Service in 2016
Ship-to-Store Transactions UP 53%
Ryder is driving resultsTRUE VALUE-RYDER PARTNERSHIP Our partnership with Ryder brought excellent
results in 2016, with route optimization improving delivery reliability and saving costs for
our company and our retailers. Next: a new app that enables real-time shipment tracking.
Drawing new customers to your storeTRUE VALUE SHIP-TO-STORE PROGRAM Although 93 percent of retail sales still happen
in stores, the majority of consumers report that they decide where to make their purchases
by visiting a retailer’s website. Our True Value Ship-to-Store program aligns with this trend,
helping to drive new customer orders, traffic, sales and loyalty. In addition to this already
successful program, we launched new two-day ship-to-home capabilities for orders
placed from our stores.
1,800 Retailers Participating in Ship-to-Store Program
TrueValue.com Sales UP
~50%
“ We have one son in the business and three younger kids. We want to build this business and pass it on.” —ALLEN, TARA AND JUSTIN WITHERITE, OWNERS, TRIANGLE TRUE VALUE, BELLEFONTE, PENNSYLVANIA
“ Each market is different. It’s not a cookie-cutter deal. True Value’s flexibility makes us stronger.” —JOHNNY BOYLE, OWNER, BANDERA TRUE VALUE, BANDERA, TEXAS
“ We would like to continue to grow. In 10 years, I could see us having 10–25 stores.” —RODRIGO CUARÓN, CO-OWNER, HÁGALO TRUE VALUE, JUÁREZ CITY, MEXICO
TRUE VALUE 2016 ANNUAL REPORT 13
Celebrating Retailer SuccessRetailer stories inspire us every day, reminding us of what we’re in business to do: support your relevance, growth and profitability, and long-term success. The pages that follow tell just a few of those stories.
EXPANDED RENTAL CENTER
From contractor to do-it-yourselfer, heavy equipment to hand tools, for four hours to four weeks, Triangle True Value’s newly expanded rental department is a profit center that builds relationships.
SERVICE MAKES THE DIFFERENCE
The Witherites credit their friendly, dedicated staff as the biggest difference-maker in competing successfully against larger retailers in their marketplace.
A FULL DTV REMODEL
The store executed a full DTV remodel last year and customer response was highly positive. The program’s increased flexibility enabled ownership to fund the project through loans.
14 TRUE VALUE 2016 ANNUAL REPORT
RETAILER PROFILE
Triangle True Value BELLEFONTE, PENNSYLVANIA
Triangle True Value is a classic small-town, family-owned hardware store operating in a big-box world. With True Value programs and support, owners Allen, Tara and Justin Witherite are keeping their store relevant and competing successfully.
“ True Value lets us run our business. Very flexible. But they’re always there to help, which is huge in my book.” —ALLEN WITHERITE, CO-OWNER, TRIANGLE TRUE VALUE
TRUE VALUE 2016 ANNUAL REPORT 15TRUE VALUE 2016 ANNUAL REPORT 15
Triangle True Value competes—and wins—through customer service, one shopper at a time.
A HISTORY OF INTEGRITY
The McCoy family’s belief in fair dealing came to the fore when Hurricane Carla hit the Texas coast in 1961. McCoy’s refused to join other businesses that inflated prices in the storm’s aftermath.
RETAILER PROFILE
McCoy’s Building Supply SAN MARCOS, TEXAS
McCoy’s was founded as a roofing supply business in 1927 on the principles of honesty and
taking care of customers. Four generations later, the business spans 86 retail locations in
five states.
CULTURE MATTERS, PEOPLE ARE KEY
Owners Brian McCoy and daughter Megan have invested significant time and resources in “relational training” to develop leaders who foster a relationship-focused culture, both among employees and with customers.
16 TRUE VALUE 2016 ANNUAL REPORT
“ We teach our leaders to grow themselves and grow others. When they do that, we grow the business.” —DAN STAUFFER, VP MARKETING AND REAL ESTATE, MCCOY’S BUILDING SUPPLY
TRUE VALUE 2016 ANNUAL REPORT 17
Left to right: Erica McKinney, Eddie Sturm, Olga Martinez, Scott Sternadel (store manager, in white shirt), Kevin Bartos, Valerie Duque
DTV DRIVES RESULTS
DTV’s impact on sales was big, and immediate—the stores saw combined double-digit (11.7%) sales growth the first year.
SELECTION AND CONVENIENCE
J.C. Crowder says the key to consumer relevance is product selection that includes top brands, and convenience, driven by a clean, well-organized store, expedient check-out and great customer service.
MODERN FROM THE GROUND UP
In addition to a new computerized paint match station, the retailer went all in with DTV—a major remodel in one location and ground-up construction on a new site, both in 2014.
RETAILER PROFILE
Crowder Bros. Hardware SPRING HILL, FLORIDA
Crowder Bros. Hardware has been a family business since 1955. The owners of two store
locations had worked with a number of co-ops before joining True Value in 2014. Why True
Value? Flexibility, selection and DTV.
18 TRUE VALUE 2016 ANNUAL REPORT
“ True Value’s product selection is much superior to our former co-op. And we felt DTV gave us the best opportunity to grow.” —DAVE WILLIAMS, MANAGING PARTNER, CROWDER BROS. HARDWARE
TRUE VALUE 2016 ANNUAL REPORT 19
Dave Williams and members of the Spring Hill, Florida, Crowder Bros. retail team
BIGGEST DEPARTMENT: LAWN & GARDEN
Lawn & Garden is big in Boyle’s marketplace. His stores carry a full array of tools and equipment, live goods and nursery products, including True Value’s exclusive Green Thumb line.
TRUE VALUE TRUE BELIEVER
When it comes to True Value programs, Boyle’s stores do it all—Bargains of the Month, Customized True Blues, National Ad Program, True Value Rewards, DTV— because he says they all drive sales, DTV alone by double digits the first year.
GENERATIONS OF RETAIL KNOW-HOW
Johnny Boyle is a born retailer. With a grandfather and great uncle who started a Bandera food and general merchandise store in 1907, Johnny was raised among retail shelves. He learned a thing or two.
RETAILER PROFILE
Bandera True Value BANDERA, TEXAS
Owner Johnny Boyle tells us he has grown his two locations—he has a second
store in nearby Lakehills—by listening to customers and identifying “voids” in what
competitors offer, then filling them. It works.
20 TRUE VALUE 2016 ANNUAL REPORT
Left to Right: John Boyle III, Holly Boyle, Johnny Boyle and Milam Boyle
“ You have to evolve. You can’t be satisfied with the status quo. If you’re not changing, you might not know it yet, but you’re in trouble.” —JOHNNY BOYLE, OWNER, BANDERA TRUE VALUE
TRUE VALUE 2016 ANNUAL REPORT 21
SIX SIMPLE WORDS “ Did you find what you wanted?” These six words are critical at Hágalo because ownership believes documenting what customers are NOT finding is vital to guiding inventory and purchasing decisions.
STAFFING IS A SUCCESS DRIVER With service speed at a premium, being well staffed is a competitive advantage. For Rodrigo it’s a top priority to have enough people on the floor to help customers make their purchases quickly.
RETAILER PROFILE
Hágalo True Value JUÁREZ CITY, MEXICO
Hágalo True Value has been a fixture in Juárez City, Mexico, since 1946. Co-owner
Rodrigo Cuarón’s grandfather Pablo, 96, still comes in every day. No doubt he is
pleased to see the business he co-founded grow to eight stores. And counting.
PAINT IS A GREAT BUSINESS Paint is a key True Value product category at Hágalo, and Rodrigo tells us the lifetime warranty is particularly popular. By investing in promotional events and other marketing, Hágalo aims to continue to grow the category.
22 TRUE VALUE 2016 ANNUAL REPORT
“ Hardware and home center customers here demand fast, convenient service. With True Value’s help, that is exactly what we provide.” —RODRIGO CUARÓN, CO-OWNER, HÁGALO TRUE VALUE
TRUE VALUE 2016 ANNUAL REPORT 23
Left to right: Hector Hayen, Rodrigo Cuarón, Pablo Cuarón and, seated, co-founder Pablo Cuarón, Sr.
EXPERT LOCAL FIELD REPS Dedicated local Hillman field representatives know more than the product and its applications. They know the area, the store owner and the customers. It’s an approach that lines up perfectly with True Value’s.
HIGH-SKU PERFORMANCE In an SKU-intense business like Hillman’s, connecting the right products to the right customers is critical. The back end is key—Hillman’s distribution center ships an average of 350,000 lines a day.
FOCUSED INNOVATION Hillman’s Tempe, Arizona, Innovation Center drives a continuous pipeline of new products such as the premium PowerPro™ line, the top-performing wood screw in the market.
2016 VENDOR OF THE YEAR
The Hillman Group CINCINNATI, OHIO
Offering a huge selection of fasteners, anchors, construction fasteners and more, The Hillman Group excels through product quality and innovation, merchandising expertise, and the biggest, best field sales and support team in the business.
Left to right: Gary Seeds, VP of Sales, CEO Greg Gluchowski, Brett Hillman, Director of Sales
24 TRUE VALUE 2016 ANNUAL REPORT
“ We’re proud of our 50-plus-year relationship with True Value. We’re looking forward to the next 50.” —GREG GLUCHOWSKI, CEO, THE HILLMAN GROUP
TRUE VALUE 2016 ANNUAL REPORT 25
26 TRUE VALUE 2016 ANNUAL REPORT
SUPPORTING STRONGER COMMUNITIES
True Value CaresTrue Value Cares
TRUE RETAILER COMMITMENT After a hurricane devastated his community, Al Locklear, owner of Lumber River Trading Company in Lumberton, North Carolina, stepped up. He donated 1,000 gallons of propane, along with other basic necessities, to residents in need. When the local gas company gifted the store an additional 1,000 gallons, he donated that, too. Al Locklear embodies the spirit that lives in every True Value retailer.
TRUE VALUE FOUNDATION seeks to make a difference locally and nationally through a wide variety of ways:
• Last year’s three-year, $1.5 million grant to the True Value Boys & Girls Club in Chicago
• A national partnership with the Boys & Girls Club of America
• Contributions by the foundation, retailers, vendors and associates to United Way
• Our Painting a Brighter Future program
• Thousands of volunteer hours donated by True Value associates
BE PARTNERS We collaborate effectively to achieve our desired results as a company. Theresa Shea, Assistant General Counsel, points out how embracing diversity at True Value is critical to successfully partnering and collaborating. Theresa believes.
NO FEAR We solicit our colleagues’ open and candid feedback and we provide same. Ask Dan Swolley, Team Leader, Center of Excellence, and he’ll tell you we must be fearless in our pursuit of excellence together in all we do. Dan believes.
CAN DO We proactively challenge the status quo and use forward thinking to develop fact-based solutions. Antoine Hinton, Senior Global Product Merchant, and Herb Bellmer, Divisional Vice President, know this is the key to staying relevant to customers. Antoine and Herb believe.
ACT NOW We act quickly after gathering sufficient information. Jennifer Niehoff, Global Product Merchant, and Chris Galletto, Director, Supply Chain, know that trust and commitment to success are keys to decisive action. Jennifer and Chris believe.
ADD VALUE We embrace best practices to deliver added value. Vincent Zuber, Senior Learning Consultant, True Value University, sees continuous learning as a fundamental part of maximizing the value of True Value, every day. Vincent believes.
TAKE RISKS We are accountable for making decisions and taking smart risks. John Vanderpool, Divisional Vice President, Paint, has seen how this approach has contributed to the dramatic improvements in True Value paints. John believes.
TRUE VALUE 2016 ANNUAL REPORT 27
TRUE VALUE ASSOCIATES
The Value of CultureThe Value of CultureSHAPING OUR FUTURE TOGETHER Culture drives results. The right culture drives the right results. In fact, studies suggest that the culture of an organization can contribute directly to growth and profitability. That’s why the transformation of True Value includes undergoing cultural change, one individual at a time. True Value’s Culture Change Training Program equips associates with tools and techniques like focused storytelling and focused feedback, establishes a framework for positive accountability around business outcomes, and seeks to empower our people in their everyday work.
UNITED BY SIX CULTURAL BELIEFS:
28 TRUE VALUE 2016 ANNUAL REPORT
The Best Hardware Store in Town Awards
2016 Winners:
Anchorage True Value
Anchorage, Alaska
Burney True Value
Aberdeen, North Carolina
Ed Young’s True Value
Williamsville, New York
Green Valley True Value
Green Valley, Arizona
Handyman True Value
Florissant, Missouri
Hardware & Lumber Ltd.
Kingston, Jamaica
Kula Hardware & Nursery
Kula, Hawaii
Lewis True Value Mercantile
Bayfield, Colorado
Morrison True Value
Alpine, Texas
Nelson True Value
Prairie du Chien, Wisconsin
Qualheim’s True Value
Shawano, Wisconsin
Steele’s True Value
Tannersville, Pennsylvania
Wilton Hardware
Wilton, Connecticut
2016 Overall WinnerWillis Qualheim, Qualheim’s True Value Shawano, Wisconsin
Board of Directors
FROM LEFT TO RIGHT:
Heath Ashenfelter Vice President and Chief
Merchandising Officer
Barbara Wagner Vice President and
Corporate Treasurer
Abhinav Shukla Senior Vice President and
Chief Operating Officer
Cathy Anderson Senior Vice President
Human Resources,
General Counsel and
Secretary
Jean Saelens Vice President and
Corporate Controller
John Hartmann President and
Chief Executive Officer
Jean Niemi Vice President,
Communications
Tim Mills Senior Vice President,
Growth
Deborah O’Connor Senior Vice President and
Chief Financial Officer
Rosalee Hermens Senior Vice President and
Chief Information Officer
Eric Lane Vice President, Strategic
and Specialty Accounts
Company Officers
FROM LEFT TO RIGHT:
Brian WebbNeenah, Wisconsin 1,7*
Kathleen GuionAustin, Texas 2,7,8*
Jared LittmannAnnapolis, Maryland 1,6,8
Richard GeorgeElmhurst, Illinois 2,6,8,˚
Brent BurgerOakland, Maine. 1,4,˚
Gregory JosefowiczFennville, Michigan 2,5,˚
M. Shân AtkinsLong Grove, Illinois 2,6,7
James WatersSalina, Kansas 1,6,7
Thomas MarkertDelray Beach, Florida 2,7
Alan BryantOakhurst, California 1,8
John HartmannChicago, Illinois 3,˚
Director Designations 1 Store Owner 2 Outside Director 3 President & Chief Executive Officer 4 Board Chair 5 Board Vice-Chair
Board Committees 6 Audit Committee 7 Compensation Committee 8 Corporate Governance Committee * Committee Chair ̊ Executive Committee
29