50 Facts About True Value

True Value's Humble Beginnings

True Value has a rich history that dates back to the early 20th century. Let's dive into the origins and early milestones of this iconic brand.

1. Founding: True Value was founded in 1932 by Hibbard, Spencer and Bartlett, which later became part of Cotter & Company in 1963.
2. John Cotter: John Cotter, the founder of Cotter & Company, started his career in the hardware business at the age of 12 in a neighborhood hardware store in St. Paul, Minnesota.
3. Cotter & Company: In 1948, John Cotter founded Cotter & Company, a retailer-owned company that included 25 independently owned and operated stores.
4. Hibbard's Acquisition: In 1963, Cotter & Company acquired Hibbard, Spencer and Bartlett, including the True Value trademark, which was a long-standing brand since 1932.
5. True Value Trademark: The True Value trademark was acquired for $2,500 as part of the Hibbard's acquisition deal.

Global Reach and Community Focus

True Value isn't just a local hardware store; it's a global brand with a strong community presence.

6. Global Presence: Today, True Value Company operates in over 60 countries, serving more than 4,500 stores worldwide.
7. Retail Sales: True Value generates about $10 billion in retail sales annually, with a strong focus on supporting independent retailers.
8. Distribution Centers: The company operates 13 regional distribution centers to ensure efficient product delivery to its retailers.
9. Associates: True Value employs approximately 2,500 associates globally, committed to providing exceptional service and expert advice to customers.
10. Community Focus: True Value is deeply rooted in its community, aiming to be more than just a hardware store but a part of the local community, making customers feel at home.

Supporting Independent Retailers

True Value's business model revolves around empowering independent retailers. Here’s how they do it.

11. Independent Retailers: True Value has a proud heritage of supporting the growth and success of independent retailers, which is at the core of its business model.
12. Quality Products: The company understands that customers value quality products, exceptional service, and expert advice, which are the foundation of its business.
13. Innovative Marketing: True Value focuses on innovative marketing programs, including local e-commerce, store remodel support, and True Value University, to enhance its services.
14. Product Assortment: The company offers an expansive product set with market-customized assortments at highly competitive prices, ensuring that retailers can provide a wide range of products to their customers.
15. Jobs Theory: True Value's assortment strategy is based on the "jobs theory," which focuses on specific jobs DIY consumers are doing, allowing retailers to better assist customers in completing tasks from beginning to end.

Specialized Markets and Vendor Partnerships

True Value has identified key markets and built strong vendor relationships to provide the best products.

16. Aging-in-Place Market: The company has prioritized the aging-in-place market, partnering with Compass Health and its Carex brand to provide specialized products for this demographic.
17. Vendor Partnerships: True Value has invested over $100 million in inventory to create the best products in the industry, prioritizing partnerships with its vendor community.
18. Product Flow Rates: The company has improved its product flow rates by over 20% since the start of the year, ensuring timely delivery of products to retailers.
19. Fill Rates: Strategic investments in core planogrammed offerings have increased fill rates of important programs to over 90% for the first time in over two years.
20. Bargain of the Month Event (BOM): True Value is upgrading its BOM event, which includes eight basic core items offered at discounted prices, and will be auto-shipped to stores in 2023.

New Products and Technological Innovations

True Value is always looking for ways to innovate and improve its offerings.

21. New Product Arena: The company focused on bringing new and interesting products to its retailers during the 2022 Fall Reunion, providing deals on familiar products and exploring new product lines.
22. LimitLess Paint: True Value launched a new line of paint called LimitLess, a premium paint that is part of its EasyCare lineup, offering high-quality paint at two-thirds the price of the highest quality paint in the market.
23. RyderShare App: The company introduced the RyderShare app with real-time shipping and delivery notifications to streamline how retailers do business.
24. New Netwarehouse: True Value shifted to New Netwarehouse, an online ordering tool, to enhance its digital capabilities.
25. New Store Openings: Since the beginning of 2021, True Value has signed nearly 600 new stores, with 105 new stores opened by existing retailers, indicating significant growth in the number of new stores.

Financial Health and Leadership

True Value's financial strategies and leadership decisions have played a crucial role in its success.

26. Debt Reduction: Over the last two years, True Value has reduced its debt by over $100 million, carrying the lowest amount of debt since 2017.
27. CEO Chris Kempa: True Value CEO Chris Kempa announced an expanded partnership with Toro and the addition of Kelly Megel to the leadership team as senior vice president of marketing during the 2022 Fall Reunion.
28. Networking Reunions: The company's Reunions are not only about products and pricing but also about networking, meeting new people, and learning from them, which is especially valuable for retailers.
29. Physical Product Experience: Being in person allows retailers to become more familiar with products and see how they could be a good fit for their customers, which cannot be replicated on a virtual platform.
30. 75th Anniversary: True Value is celebrating its 75th anniversary in 2023, marking a significant milestone in its history. The 2023 Spring Reunion will take place in Chicago, which is the company's hometown.

Historical Milestones and Challenges

True Value has faced and overcome numerous challenges throughout its history, shaping it into the company it is today.

31. Historical Merger: True Value Company was formed on July 1, 1997, by the merger of Cotter & Company and ServiStar Coast to Coast Corporation, formerly known as TruServ Corporation.
32. Cooperative Structure: True Value is a cooperative comprised of members who are entrepreneur-retailers, focusing on empowering independent retailers through industry and market standards.
33. Brand Identity: The company adopted its current moniker in 2005, after a restructuring process that included cutting jobs and divesting certain businesses in the early 2000s.
34. Net Income Recovery: By 2005, True Value had recovered slowly, with net income doubling in 2004 to $43.2 million, and debt continuing to drop.
35. Membership Growth: Despite 355 members exiting the co-op, 202 new members signed up, indicating a positive trend in membership growth.

Competitive Landscape and Strategic Decisions

True Value operates in a highly competitive market and has made strategic decisions to stay ahead.

36. Principal Competitors: True Value's principal competitors include The Home Depot Inc., Lowe's Companies Inc., and Wal-Mart Stores Inc.
37. Historical Challenges: True Value faced challenges related to the 1997 merger and accounting irregularities, which forced the company to restructure its operations.
38. World War II Experiment: During World War II, Hibbard's tried a new approach by opening nine company-owned stores using the True Value name, but the regular customers did not like the competition, and Hibbard's closed the test stores after the war.
39. Midwest Expansion: In the 1950s, Hibbard's acquired several smaller wholesalers around the Midwest and started a voluntary chain of franchise dealers who bought most of their merchandise from Hibbard's and used the company's True Value ads and promotions.
40. Sales Volume Record: In 1956, Hibbard's reached record sales volume of $33 million and ended the decade with a chain of nearly 1,000 dealers and four distribution centers.

The True Value Franchise and Secretive Acquisition

The True Value franchise has grown significantly, thanks to strategic acquisitions and dealer support.

41. True Value Franchise: Hibbard's concentrated on the True Value franchise, stopping sales to thousands of small accounts and laying off many of its salesmen, ending the decade with a chain of nearly 1,000 dealers and four distribution centers.
42. Secretive Acquisition: The Hibbard's takeover by Cotter & Company was one of the best-kept secrets in business history, with John Cotter and a small number of his top people meeting secretly with Hibbard's directors and senior-level employees to hammer out the deal.
43. Final Price: The final price for all of Hibbard's assets was $2.5 million, including $2,500 for the True Value trademark.
44. Dealer Support: Most of the 400 Hibbard's dealers agreed to become shareholders in the Cotter & Company co-op, allowing them to continue using the True Value name.
45. Brand National Identity: The acquisition of Hibbard's increased Cotter & Company's sales by 56 percent and gave the company a brand name that would become its national identity.

Commitment to Members and Community Engagement

True Value remains committed to its members and the communities it serves.

46. Members-First Focus: True Value Company is committed to empowering the independent retailer by setting industry and market standards with its niche businesses and unique brand of creative marketing, wide product assortment, award-winning merchandising, and technology.
47. Quality Training: The company provides quality training and business expertise to its members, ensuring they have the necessary tools to succeed in the competitive hardware retail market.
48. Turnaround Strategy: As part of its turnaround strategy, TruServ adopted the True Value corporate moniker in early 2005, after net income had doubled in 2004 to $43.2 million, and debt continued to drop.
49. New Initiatives: True Value has introduced several new initiatives, including the RyderShare app and New Netwarehouse, to streamline operations and enhance customer service.
50. Community Engagement: True Value is deeply engaged with its community, supporting local events and initiatives, and aiming to be a trusted neighbor in every community it serves.

True Value's Legacy and Future

True Value has come a long way since its start in 1932. From a small hardware store to a global leader, it’s clear they’ve made a significant impact. Supporting over 4,500 stores in more than 60 countries, they’ve shown a commitment to independent retailers and communities. With innovative marketing, quality products, and a focus on customer needs, True Value continues to grow. Their dedication to reducing debt and expanding partnerships highlights a strong future. Celebrating 75 years, they’re not just looking back but also planning ahead. True Value’s story is one of resilience, innovation, and community focus. As they move forward, their legacy of supporting independent retailers and providing top-notch service remains strong. Here’s to many more years of success and growth for True Value.