True Value Brings Power Tools Giants Into Warehouses

Since the company’s acquisition by Do it Best, the True Value merchandising team has been working to rebuild existing vendor relationships and establish new ones. As part of its efforts, True Value recently announced the addition of two key vendors into its warehouses—Milwaukee and Diablo. Hardware Retailing sat down with Justin Hanford, True Value vice president of merchandising, and Kristie Quaderer, True Value merchandise manager for tools and hardware, to learn more about these new partnerships. 

Hardware Retailing (HR): What are the key ways that True Value is getting fill rates and other distribution functions back on track post acquisition?
Justin Hanford (JH): Post-acquisition, getting our fill rates and distribution functions back on track has absolutely been a top priority. We’re focusing on rebuilding vendor relationships, refining our supply chain processes, optimizing inventory levels and improving communication with all of our internal teams, vendors and retailers. A key part of this effort has been in enhancing our forecasting tools and leveraging data analytics to ramp up to the expected demand. We’re also seeing that our vendors are more eager to partner with us because we’re a clear industry champion that is growing exponentially. They want to be a part of that growth. By bringing all these pieces together, we’re already seeing substantial improvements in achieving more consistent fill rates and even stronger partnerships.

HR: Replenishing warehouse inventory to stronger levels is an important part of meeting customer demands. What were some of the challenges you found in doing this post-acquisition?
JH: With the supply chain essentially halted prior to our acquisition in late November, getting everything turned back on has taken time. Most of our vendors had to set up new accounts to differentiate from the legacy business, slowing our ability to get our orders shipping quickly. And we’ve had a handful of vendors who’ve chosen to pause doing business with True Value while they reevaluate their relationship with us. This has resulted in us being creative to find alternative sources or increasing our partnerships with vendors who are better aligned to grow with us. For the many vendors who have been able to ship, we’re processing a record volume of inbound product, which has our warehouse teams putting in extra hours to support our retailers. Our warehouse teams have really redoubled their efforts to move those products into stock so retailers can bring more of their purchases back to True Value.

HR: How have you worked with industry vendors to rebuild inventory, but also rebuild their comfort level with doing business with True Value?
JH: Rebuilding relationships with our vendors has been crucial, not only for inventory replenishment but also for rebuilding their confidence in doing business with the new True Value. A lot of this comes down to transparent communication and clear expectations. We’ve been engaging directly with our suppliers to explain that everything we do is backed by the financial strength and long-term reputation of Do it Best. We’ve worked hard to prove that today’s True Value is committed to rebuilding those trusted partnerships. Through these efforts, many of our vendors have already expressed a renewed confidence in our ability to drive sales for everyone, which is what they’ve come to know with Do it Best.

HR: Can you give us some examples of vendors you have been working with to strengthen your ability to service customers?
JH: A number of key vendors from every department have been instrumental in strengthening our stocking position, especially those who provide essential in-demand product categories like power tools and accessories. In particular, we have had some very successful programs on the Do it Best side of the business with Milwaukee and Diablo, two great manufacturers in this category. And we’ve been able to relatively quickly bring those programs into True Value to supplement our already strong power tool brand offering. These vendors understand the power of us all working together to drive sales in the independent channel.

HR: Can you share any insights into what lies ahead for the coming months in relation to True Value’s Merchandising team goals?
JH: Looking ahead, the merchandising team at True Value is focused on continuing to improve product availability while also ensuring our offerings remain competitive and aligned with retailer needs. We’re going to be prioritizing products that have strong demand, but also focusing on expanding our offerings in emerging categories where we see growth potential. Another key goal for the next few months is to partner with our Do it Best counterparts to conduct line reviews as we look to offer exclusive deals, innovative products, superior availability and competitively priced products.

HR: When it comes to power tools, it’s clear that brands drive much of the demand for both retailers and end users. Why is having the right brands so critical as a distributor and a retailer?
Kristie Quaderer (KQ): We know what ultimately matters to the end consumer is the right product that gets the job done correctly, and that’s often tied to consistent brand loyalty, particularly in these categories. That means we need to carry the right products, assortments and cordless tool battery platforms that make it easy for our stores to connect with their customers and drive more sales. Our job is to be the expert in these categories and provide solutions that our stores rely on to make their customers happy. Having the right brands is key to building and maintaining loyalty between the store and their customers.

HR: What are some of the keys to finding success in the highly competitive power tool and power tools accessories space? How do areas like marketing, merchandising and employee knowledge impact success?
KQ: Focusing on how power tool accessories really elevate any power tool can be a game changer. Power tool users especially need their tools to perform, and the right accessories can make the difference. The tool itself has to be high quality, but what can often drive loyalty and success in this category is understanding how the power tool accessories bring the next level of quality. There are brands that focus solely on the quality of their power tool accessories products and how well they pair with other brands, knowing the right accessories can make the difference. Having an assortment that allows for the best combination of accessories and tools, as well as a team that understands how these products work together, is a winning strategy to drive greater loyalty and sales. 

HR: How does a retailer’s approach to these categories need to differ if they are serving DIYers, pros, construction and industry or even farm and ranch markets?
KQ: The type of assortment breadth would be the main driver. Brands are still in play no matter who they are serving. This is where a team’s understanding of the right products for your store is critical. Your assortment should reflect flexibility and the highest quality combinations of power tools and the accessories to accommodate what are, at the core, relatively similar core “jobs” like drilling, but the applications will be different. In all of these variable environments, the user might need options, and that’s where the strategy of flexible, interchangeable power tools and accessories can really help them complete their project. That sense of satisfaction will keep them returning to a retailer like you over and over.

HR: What are some of the latest trends in power tools and power tool accessories that retailers should be aware of and prepared to respond to?
KQ: Major innovations are happening in a couple of ways. Our vendor partners are focused on performance and materials these accessories need to get through—metal, concrete and wood—and how to make the work more efficient. A critical area of innovation is cutting technology, particularly with oscillating tools, which has been the top growing category for several years. The options now available are designed to help users get the job or project done more efficiently by providing multi-material cutting options because the brands are focused on the actual jobs the end-user is doing. So, coming back to how important brands are in this space—the right mix can help attract new customers, drive loyalty and repeat purchases and help stores engage with categories that are seeing growth.

Hear from True Value president Dent Johnson, who openly answered a range of questions, sharing how the leadership teams are navigating the challenges of the acquisition and providing insights on what the future holds for both companies.

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