watch drivers slow down when they approached the store, and then just keep going,” he told HBSDealer. “It was that packed here.” Missouri Flats Hardware moved its rental yard to the acre-and-a-half lot next door. Additional parking spaces were created. And inventory went up to match what the store thought it could handle in traffic. Instead of carrying 5 to 10 John Deere tractors, the store now carries 40 to 50. And sales in that category are up 100% for the year. In addition to gains in tractor sales, Guiterrez said STIHL sales were up 90%; and business in general is humming along with 40% growth over the prior year. “Getting that [equity check] just made my net worth improve on all sides,” he said. “It made the business grow, it gave me some cash flow, and it sped up our expansion.”
Pipestone True Value
Pipestone, Minn. First-generation hardware store retailer Chad Koep, was listening to a conversation at a Chinese restaurant in Lakeview, Minn. Talk turned to the transformation of the local mall, and the disappearance of J.C. Penney. Then he heard the comment: “I’m just thankful that we have this True Value over here, because they do the things the Amazons
and the Walmarts can’t do. “At that moment I was just so proud of my staff,” Koep told HBSDealer. “I was grinning ear to ear, because that’s one thing we pride ourselves on. You’re going to get greeted, and you will be treated as the most important thing in that store.” It was a welcome, memorable moment for Koep. And so was the time he received his equity check from True Value. “For me, it was huge,” he said of the equity distribution. “I had just started the acquisition process for the Pipestone store, and when I learned about the deal, it allowed me to free up more capital.” He broke it down: “Instead of buying a Chevrolet, I bought a Cadillac.” The Pipestone store, formerly known as Carrow’s True Value, is Koep's third True Value Hardware Store. When he purchased it, he gave it the upgrade and redesign it needed, along with the rebranding to Pipestone True Value. The store measures 13,000 sq. ft. in a town of 4,000. Koep added the new Inspiration Realized paint center, which sets the tone for the customer entering the store. He updated the lighting to efficient LEDs, and the added a lot of interactive POP, as well as 55-inch display monitors that broadcast specials and home improvement tips throughout the store. He also brought in whole new categories of merchandise. “We made it a destination,” he said. “And we’re getting a lot of positive feedback from the community.” The Pipestone (Minn.) True Value store is Chad Koep’s third.
HBSDealer.com
The Inspiration Realized paint center.
D&E Hardware & Outdoors
Mims, Fla. Fred Gumieny’s family business on Florida's Space Coast, specializes in irrigation and well drilling. He branched out into the hardware business in 2006. He survived the housing recession, and eventually thrived --taking on the True Value banner in 2012. When the check from the True Value transaction came in 2018, Gumieny had been considering a store makeover and paint center investment. The windfall “closed the deal,” he said. “It was a great time to invest in the store.” As part of the D&E Hardware and Outdoors makeover, he purchased the True Value paint center program — called “Inspiration Realized,” — hired a contractor to renovate the floors, added Lozier shelfing and painted the store interior. “It was a win-win for me, and the store,” he said. “And customers love it.” With the colorful paint display prominently featured in the center of the store, category sales have increased 10% to 15%, he said. “Success breeds success,” Gumieny said. “When people walk into the store and they see a renovation and a fresh new look, it encourages them to invest in their own home. “There’s competition all over,” he added. "We’re in a small town but we have competition, and you gotta stay in front of the competition. Or at least, try.”
HARDWARE + BUILDING SUPPLY DEALER JULY/AUGUST 2019
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