What a drone can't deliver...

Hardware is changing. For as long as the consumer wants to paint walls, fix pipes, or buy grills, the industry will exist. But consumer demand alone doesn’t guarantee success for all retailers in this rapidly evolving market. The flexibility, innovation, and investment to differentiate the offer of the independent retailer from the big box stores and internet giants has never been so important.

That’s why True Value is changing. Existing as a co-op for 70 years, we’ve seen unimaginable change not only in retail but in the world around us. Together, we’ve gone through good times and experienced bumps in the road, but our focus has always fundamentally remained the same:

To help independent hardware retailers in the US and internationally achieve long-term growth, profitability and relevance; and to preserve their absolute independence to make the best decisions for their store, and the local market they know better than anyone else.

We’re incredibly proud of our rich history and the iconic brand we’ve built with our retailers across the world. But just like today’s consumer, we want more…

We want to lead the independent hardware channel to a place where bricks & mortar and ecommerce work in tandem to grow business, where wholesale can boom, driving prices down and margins up for store owners, and where both suppliers and retailers can be quick and decisive in reacting to the market with greater investment, flexibility and choice. 

On April 20th 2018, True Value closed a deal with a new financial partner, ACON Investments, to put these changes in motion. As a first step we are unlocking 70 percent of our store owners’ invested capital, equivalent to $230 million!  Our current Members will also retain a 30 percent stake in the new company. The benefits of unlocking hundreds of millions of dollars of equity to be invested in thousands of independent stores across the US and internationally will, I believe, have a deep and lasting impact on our industry. 

The co-op model made us who we are today, but that doesn’t mean it’s the best fit for our future as the world changes around us. For several years now, True Value has been transitioning away from the pure traditional model which demands participation in expensive programs not relevant to their store, dictate their advertising strategy regardless of customer profile, and limit their buying choices. Within this framework for change, where the independent choice and unique knowledge of the store owner is seen as the most vital driver of long-term success, it no longer makes sense to hold the equity of our store owners under lock and key. To put the finest point on it, their investment was simply a trapped and illiquid asset that only depreciated over time.

This is where the unlocking of that equity starts to drive further relevance in the market. Investment paired with support from True Value Company as a flexible wholesale partner can transform the look and feel of a store, the strategy for reaching customers, the product selection, adding eCommerce….the list goes on. We stand with our current retailers and future customers offering quality product, competitive pricing and a broad array of a la carte services to firmly cement the role of the independently owned hardware store in main street America. 

And this is an offer that we can now extend to thousands of additional stores across the globe. Moving to our new structure means no buy-in or ongoing stock requirement, no demands on operating models and even no reason to leave a current provider. Just the product, programs, expertise and iconic retail brand needed to be a leader in your local market.

True Value is open for business! We just want to provide the simplest way for independent hardware retailers to be successful, and in so doing, support all those businesspeople – multi-generational families, young retailers opening their first store, and industry veterans with multiple locations – who know that the “true value” is what their local business brings to the community.

We want to be a catalyst for the change needed to keep our customers relevant for decades to come, and we want to drive this change together with partners who share our focus and our passion. With our new flexible offer we will work together with thousands more retailers than ever before to show the big box retailers that the independent hardware store is here to stay. Local. Convenient. Knowledgeable. Quick in and out. Know-your-name Service. Community Cornerstone. All that a drone can’t deliver!