- Net margin of $23.7 million, up 24.4 percent
- DTV retail comparable store sales up 3.7 percent
- Retail comparable store sales up 2.5 percent
CHICAGO, March 15, 2017 – True Value Company, one of the world's largest retailer-owned hardware cooperatives, today reported total gross billings of $2,073.7 million for the fiscal year ending Dec. 31, 2016, up 2.0 percent or $40.5 million compared to the prior year. Revenue was $1,514.1 million, an increase of 1.1 percent or $16.9 million.
Destination True Value (DTV) comparable store sales were up 3.7 percent for the fiscal year. The company also experienced its sixth consecutive year of increased annual sales and third year of sales from new stores exceeding the lost sales from terminated stores.
Total retail comparable store sales were up 2.5 percent with increases across eleven of the twelve regions in the country and six of nine merchandise categories, led by Farm Ranch Auto & Pet, Lawn & Garden, and Paint.
In 2016, True Value completed its second full year in the implementation of its strategic plan, achieving a double-digit increase in net margin over the prior year. As planned, the company will deliver an increased patronage dividend for the year.
“True Value is two years into executing a plan that will serve our retailers’ needs and ensure their long-term growth and profitability, making them relevant for generations to come,” said President and CEO John Hartmann. “We have broken a nearly decade-long trend of negative net new sales growth; for the past three consecutive years, the sales volume from our new stores has exceeded sales from terminated stores. I am proud of our accomplishments in the areas of growth, infrastructure improvements, product assortments and operations.”
In 2016, True Value’s targeted initiatives and investments led to:
- Record 101 remodeled stores and record 68 completed ground-up stores, representing over 960,000 square feet of relevant retail space
- Named No. 1 retailer in the Temkin Experience Ratings and improved score in the J.D. Power Rankings following the roll-out of a new customer service training for retailers
- Enhanced fulfillment options, including a retrofit of three distribution centers enabling two-day shipping for customer orders placed in True Value stores
- Significant sales growth in the Customized True Blue assortment program with average retail sales up 4.7 percent year over year at participating stores
- Increased international sales of 14.5 percent and 11.6 percent in paint sales
Successful fleet transition, resulting in an expected 3-million-dollar reduction in transportation costs for retailers in 2017
Download 2016 Year-End Results Infographic