True Value sales jump on expanded product lineup in Q2
True Value Company reported strong results in the second quarter, with a revenue boost of 4.5% driven largely by an expanded assortment of farm, ranch, automotive, pet, seasonal and plumbing products.
Reported revenue for the co-op was $429.5 million for the three months ended June 28, compared with $411.2 million year-over-year.
"In the second quarter, we saw a continuation of first-quarter sales increases," said president and CEO John Hartmann. "In fact, on a year-to-date basis, we had revenue increases in all regions of the country and in all 10 of our product departments. From a profit perspective, the incremental gross margin from the sales increase was offset by higher inbound freight expenses and our planned one-time expenses and retailer subsidies related to the rollout of our new ‘Color by Design’ paint colorant systems, equipment, displays and collateral."
Other metrics of note included comparable-store sales, which were up 4.2% in the quarter and 4.8% year-to-date. The quarterly net margin came in at $23.2 million, down 2.5% from last year’s $23.8 million.
Gross billings sales from new stores made up for lost sales from closed stores by $10.7 million for the six-month period ended June 28.
True Value also noted its addition of 428,000 sq. ft. of retail space, as well as the addition of 34 new members in 2014.
Ace and RONA strike a deal in Canada
Ace Hardware has struck a deal with RONA, a Canadian retailer and distributor of hardware, building materials and home renovation products, to forge a long-term agreement for master licensing of the Ace brand in Canada.
Under the terms of the new deal, RONA will enjoy certain rights to various Ace Hardware brands, retail operating systems and Web portals, as well as various distribution rights via Ace (including through its China direct programs). The move will help RONA in its effort to expand its network of affiliated dealer stores in Canada while supporting the growth of Ace in Canada.
“The Ace Hardware brand is well recognized in the U.S., Canada and internationally," said RONA president and CEO Robert Sawyer. "This agreement will enable us to improve our offering to small dealers across the country, to leverage our existing distribution infrastructure and to strengthen our portfolio of banners. Canadian customers will also benefit from this new relationship as RONA will put important efforts in collaboration with Ace Hardware International in the development of the brand, which will perfectly complement RONA’s existing brands, especially in some areas of the country where RONA has a limited presence."
"Ace has been thoroughly impressed with RONA’s commitment to the independent Canadian retailer, their rigor in crafting an efficient country-wide supply chain and their intimate knowledge of and experience in Canada,” said John Venhuizen, president and CEO, Ace Hardware. “I believe Ace’s combination of strengths with RONA will be an exceedingly compelling proposition for both independent hardware and lumber dealers and the Canadian consumer for a very long time to come.”
NuvoH20 water softeners hit Utah region stores
Customers in Utah, Nevada and Wyoming can now buy NuvohH2O’s water softeners at certain Ace Hardware stores, the supplier announced Thursday.
Instead of using salt like most water softeners, NuvoH2O’s products work with the help of a citrus agent and don’t require electricity, brine tank, drain or soft water loop to work/. The absence of salt reduces buildup on fixtures and shower doors.
“We are happy to be offering these water softening systems because they provide a way for our customers to make a better, more efficient home," said Steven Allen, who owns an Ace Hardware location in Layton, Utah. “The NuvoH2O water softening system is beneficial for purchasers on many levels, but we love the fact that the product helps reduce scale buildup and allows a home’s large appliances and plumbing system to work better.”