Desirable destination

Desirable destination
The new Destination True Value concept brings a female-friendly appeal to the neighborhood hardware store

By Alison Embrey Medina, Senior Editor
May 01, 2008

Mark Steele Photography, Columbus, Ohio

Much like automotive companies must convince their franchisees to buy into new, updated dealership prototypes and packages, retail cooperatives have a lot of convincing to do when it comes to a new store concept. Such is the case for Chicago-based True Value Co., one of the world's largest member-owned wholesale hardware co-ops with approximately 5,600 independent retailer locations operating in 54 countries.

Wanting to reach out to a new generation of female hardware store shoppers and light do-it-yourselfers, True Value partnered with Columbus, Ohio-based Big Red Rooster to develop a new design concept for the co-op—Destination True Value. And to market that new concept to its membership of entrepreneur-retailers last fall, True Value had Big Red Rooster build a full-scale Destination True Value prototype in the middle of the Georgia World Congress Center to be on display for walk-through tours at the company's annual Fall Market in Atlanta—a tradeshow of sorts for True Value members only. "We wanted to drive excitement for the brand internally to the True Value member group, but also to the consumer shoppers of True Value," says Aaron Spiess, president of Big Red Rooster. "That rejuvenation wasn't just an outward push to consumer shoppers, it had to be thought out and strategically positioned inside the organization as well."

Members have the option of signing on for the new look in a variety of commitments—adapting just the décor package, remerchandising specific product categories, a full-scale remodel or a ground-up new build (ranging from 8,500 sq. ft. to more than 15,000 sq. ft.). "The new environment really sets the stage," said True Value President and CEO Lyle Heidemann at the company's Retail Best Practices Conference (held in conjunction with the Fall Market in Atlanta). "It is more contemporary, [has] lighter and brighter colors, is female friendly, easy to shop and includes product dominance."

Walking into the new prototype, one is immediately introduced to wide aisles, an earth-tone color palette, welcoming lighting, bright signage and attention-grabbing product categories. Rather than power tools and hardware dominating the entry landing, customers are greeted with a brightly lit Color Center (paints) and a well-decorated seasonal merchandise presentation. While this was intended to be more welcoming to True Value's many female customers, the male customer is not forgotten in this store—the power tool and service departments are still highly visible from the front of the store, thanks to new open sight lines and a prominent signing program. "One of the main goals was to soften the look of the store for the female customer, but not offend the male customer or contractor," said Steve Burns, True Value retail principles manager, at the Best Practices conference.

"The target customer for the Destination True Value concept is the 'light DIY enthusiast,' and we wanted to map out the store for someone looking to take care of a quick home project easily," says Beth Dorsey, vice president, retail, Big Red Rooster. The design team's goal was to create a feeling of "shop-in-shop" areas within the store to highlight certain core product categories, each showcased with large backdrop focals to use perimeter walls to their maximum potential. Core departments such as decorative hardware, paint, plumbing, electrical, lawn and garden, and power tools are highlighted with textured backdrops, specialty flooring (such as checkerboard marmoleum and recycled rubber) and shelf-level signage that help customers navigate the store. The remaining aisles feature an option of either natural-sealed concrete or VCT.

In addition to wayfinding category signage, "silent salesman signage," used both on endcaps and at shelf-level within main category aisles, provides expert information for the customer. "When we get down into the details of the communications system, one of the big things we did was provide a strategy for information throughout the store," Dorsey explains. "A lot of it has to do with either helping you choose a product, or giving you tips on how to use the product. That's another thing that tied into the female appeal." The key was to not over-communicate, so there was a certain amount of editing involved, Spiess adds. More prominent displays of household items, such as cleaning supplies and light bulbs, were also added on main aisles to entice impulse sales.

Big Red Rooster also helped reinvent the brand architecture—even down to product packaging—of True Value's more than 6,000 private-label SKUs. "The palette communicated through fixtures and color and materials within the environment is tied in to the product packaging," Spiess comments. "We wanted a product line that was coming from one voice."

Members can customize their merchandise assortments to their specific markets, such as bumping up the plumbing or lighting sections. Also included in the new concept are several "plug-and-play" departments, such as household appliances, outdoor apparel and pet care, which are already pre-planogrammed and can be switched out with any mainline categories within the store at the member's request.

The first two test stores, at St. Charles' True Value in Houma, La., and Waters True Value in Manhattan, Kan., elicited positive feedback from local customers and have further promoted the Destination True Value concept to members. True Value plans to add more than 1.5 million sq. ft. of retail space and $225 million in retail sales over the next three years—a 154 percent increase over the past three years. The company intends to incorporate various elements of Destination True Value into more than 1,000 retail locations across the United States by 2010.