Why fix something that isn't broken? Tom Capalbo, the new general manager of TruServ's rental division, doesn't plan on shaking things up dramatically, but he is bent on enhancing what's already a working product.
TruServ, succeeded Steve Nelson, who resigned last December. TruServ co-ops include more than 10,000 independent retailers worldwide operating under identities such as True Value, ServiStar Hardware, Grand Rental Station and Taylor Rental, among others.
Capalbo, a 10-year veteran at TruServ, succeeded Steve Nelson, who resigned last December. TruServ co-ops include more than 10,000 independent retailers worldwide operating under identities such as True Value, ServiStar Hardware, Grand Rental Station and Taylor Rental, among others.
Capalbo's resume includes stints as district manager, manager of commercial sales and most recently, regional sales manager and retail operations specialist for Chicago-based TruServ, the nation's largest hardware co-op. He is credited with developing TruServ's southern New England sales region, and TruServ honored him with its Pride in Partnership award in 1998 and the President's Sales award in 1993 and 1994.
Last month, Capalbo shared with RER his plans for the rental division, which boasts 1,281 members. Here are excerpts of that interview:
RER: For years you have been involved in TruServ's sales and rental programs. What makes you qualified to head its rental division and what can you offer its members?
Capalbo: For about three years, I was involved with our in-store commercial sales program. I developed the program elements and sold the program to our members. I know how to run the program because I built it from the bottom up. The members can expect to get from me answers to their questions, me to listen to their input and me to implement those suggestions.
RER: How did you view the way Steve Nelson ran the rental division? Are you going to keep the status quo or blaze new trails?
Capalbo: I didn't work with Steve that closely, only when I developed the commercial program for the rental division. His division was very successful. I'm not going to upset the apple cart. The program is good, and I'm looking to expand the opportunities for our members.
RER: What are your goals, short-term and long-term, for the company and its members?
Capalbo: Our sales goal is to grow by at least 15 percent this year. Our division is charged with finding new members, and our staff has regions they will prospect, get leads from different publications and get referrals from current members. We're very strong in the Midwest and eastern seaboard, so we're looking for markets we don't have members in. Our target for the year 2000 is to sign up 60 new stand-alone stores and another 100 in-store businesses.
RER: How has recent consolidation affected TruServ?
Capalbo: We had some members acquired last year, but we also signed new ones. I think consolidation has pretty much come full circle. Now they're looking at general rental centers like our stand-alone businesses, but we have things the consolidators don't have. For example, we have a regional distribution network for goods they don't have, and training programs. We're in the business for our members.
RER: The buzzword these days is e-commerce. Has TruServ made the leap into cyberspace?
Capalbo: My other priority is getting involved in e-business because we need to redefine what's out there. We are redeveloping our corporate Web site and getting our members to develop their own Web sites. Our catalog, with 58,000 products and about 1,600 actual rental items, and buyers' guide are also in the process of coming online.
RER: As TruServ's membership base continues to grow, how do you plan on keeping up with your members' needs and helping them boost their rental revenue?
Capalbo: We are increasing our national advertising campaign this year to drive market awareness. Internally, we work with our vendors so that we can get involved in heavy training programs that we can offer to our members both new and existing. These seminars offer product demos, product information and topics like how to work all individual items in rental stores and advertising. We'll continue to develop more programs for our members because our job is to help make them more profitable.
