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Ace Hardware

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Ace Hardware Corporation
Company typeRetailers' cooperative
Industry
FoundedChicago, Illinois, U.S. (1924 (1924))
Founder
Headquarters
Oak Brook, Illinois
,
U.S.
Number of locations
Over 4,800 (2016)[1]
Area served
International[2]
Key people
John Venhuizen (president and CEO); Jim Ackroyd (chairman of the board)
Number of employees
~86,000 (2015)[2]
Websiteacehardware.com

Ace Hardware Corporation is a hardware retailers' cooperative based in Oak Brook, Illinois, United States. It is the world’s largest hardware retail cooperative, and the largest non-grocery American retail cooperative.[3]

Founded in 1924 as "Ace Stores", the company changed its name to "Ace Hardware Corporation" in 1931. It grew dramatically following World War II, more than tripling its sales between the late 1940s and 1959. After the retirement of longtime president and founder Richard Hesse in 1973, Ace was sold to its retailers, becoming a retailer-owned cooperative. It first reached $1 billion in wholesale sales in 1985 and $5 billion in 2015. As of 2016, it has over 4,800 locations in 60 countries. Ace operates 17 distribution centers in the United States, and additional distribution facilities in China, Panama, and United Arab Emirates.[4][5]

History

In 1924, to increase buying power and profits, entrepreneurs Richard Hesse, E. Gunnard Lindquist, Frank Burke and Oscar Fisher united their Chicago, Illinois hardware stores into "Ace Stores". The company was named after the ace fighter pilots of World War I, who were able to overcome all odds. Ace Stores was incorporated in 1928, and the company opened its first warehouse a year later. In 1931, the name was changed to Ace Hardware Corporation.[6][4]

By the end of the 1940s, Ace had wholesale sales of more than $7 million from the 133 stores it supplied. By its 35th anniversary in 1959, the company had more than tripled this figure, with wholesale sales of $24.5 million from 325 stores.[4]

Founder and longtime president Richard Hesse retired in 1973. The company was thereafter sold to its retailers and restructured as a cooperative, moving its headquarters to Oak Brook, Illinois. Independent retailers became the exclusive shareholders in the company. The strategy proved successful, and Ace surpassed $1 billion in wholesale sales for the first time in 1985; it went on to pass $5 billion in 2015.[4][7]

In 2012, Ace Hardware acquired its largest member, Westlake Ace Hardware, for $88 million.[8] The following year, Ace’s president and CEO John Venhuizen launched 20/20 Vision, a strategy to use network power to provide better customer service.[9] As of 2016, J. D. Power has ranked Ace Hardware "Highest in Customer Satisfaction with Home Improvement Retail Stores" for ten consecutive years.[10]

In 2014 and 2015, Ace launched its wholesale distribution network through the acquisition of Emery Waterhouse in New England and Jensen Distribution Services in the U.S. Pacific Northwest. Later that year, Ace expanded its wholesale operations coast-to-coast with the formation of Emery Jensen Distribution, LLC. This new distribution arm operates under Ace Wholesale Holdings LLC, a subsidiary of Ace Hardware Corporation, and is dedicated to serving non-Ace Hardware independent retailers.[11]

Advertising

Lou Manfredini serves as Ace's "Helpful Hardware Man" and media spokesperson.

In 1989, Ace's longtime jingle—"Ace is the place with the helpful hardware man"—was modified, replacing "man" with the more accurate "folks".[12] Celebrities Connie Stevens (from 1974 to 1978) and Suzanne Somers (from 1979 into the early 1980s) did TV commercials for Ace Hardware. For many years, former NFL coach and NFL commentator John Madden also did Ace commercials.[13] In 2016, Ace introduced a new series of commercials, which feature associates addressing customers' needs, and a contextually-appropriate version of the Ace jingle (such as, after a customer asks for a lubricant they think is called "10W40", "Ace is the place for the stuff for squeaking hinges that's called WD-40. Not 10-W40, which is motor oil, that we also sell.").[14]

Home improvement expert Lou Manfredini serves as Ace's "Helpful Hardware Man" and media spokesperson.[15]

Overseas stores

In 1990, Ace created a separate division known as Ace International. Over the next 20 years Ace established a presence throughout Asia, the Caribbean, Latin America, and Middle East regions. In 2010, Tim-Br Mart Group acquired licensing rights to the Ace brand name in Canada.[16] Four years later, Rona, Inc. signed an agreement with Ace Hardware for the master license to the Ace brand in Canada.[17] RONA assigned the Winnipeg office as Ace Canada, formally TruServ Canada, to manage the Ace Brand. As of June 2016, there are 62 Ace-branded stores in Canada.[4]

Pt. Ace Hardware Indonesia Tbk. (IDX: ACES) opened the world's largest Ace Hardware shop, 14,695 square metres (158,180 sq ft), in Living World Mall Alam Sutera, South Tangerang, Indonesia.[18][19] On December 2, 2011 there were 52 Ace Hardware shops in Indonesia.[20]

References

  1. ^ "About Ace". ACE Hardware. Retrieved August 10, 2016.
  2. ^ a b "Ace Hardware". ACE Hardware. Retrieved 3 December 2015.
  3. ^ Claire O’Connor (March 2, 2015). "How Ace Hardware Turned Corner Stores Into A $4.7 Billion Co-Op". Forbes. Retrieved August 10, 2016.
  4. ^ a b c d e "Company History". Ace Hardware. Retrieved August 10, 2016.
  5. ^ "Ace Hardware International Implements Blue Ridge Supply Chain Planning". Business Wire. August 11, 2016. Retrieved August 12, 2016.
  6. ^ David E. Carter (1993). Living Logos: How Corporations Renew Their Images. Art Direction. p. 22.
  7. ^ David Besanko, David Dranove, Mark Shanley, Scott Schaefer (2009). Economics of Strategy. John Wiley and Sons.{{cite book}}: CS1 maint: multiple names: authors list (link)
  8. ^ Steve Vockrodt (18 December 2012). "Westlake Ace Hardware sells to Ace Hardware for $88M - Kansas City Business Journal". Kansas City Business Journal. Retrieved 3 December 2015.
  9. ^ Rework America (2015). America's Moment: Creating Opportunity in the Connected Age. New York: W.W. Norton.
  10. ^ "Ace Hardware Ranks Highest in Customer Satisfaction among Home Improvement Retailers For a 10th Consecutive Year". J.D. Power. 7 June 2016. Retrieved August 10, 2016.
  11. ^ Paul Demery (January 12, 2015). "Ace Hardware builds out its wholesale business beyond Ace stores". Internet Retailer. Retrieved August 10, 2016.
  12. ^ "Ace Hardware Aims to Win with "The Help" - Marketing World Today". Marketing World Today. Retrieved 3 December 2015.
  13. ^ Michael Hiestand (March 17, 2009). "John Madden retires as football analyst; NBC taps Collinsworth". USA Today. Retrieved August 10, 2016.
  14. ^ "Ace Hardware's New Ads Remind People Not to Eat Paint or Confuse WD-40 With Motor Oil". Adweek. Retrieved 8 September 2016.
  15. ^ Lewis Lazare (August 4, 2015). "Ace Hardware spokesman Lou Manfredini joins company's Center for Excellence". Chicago Business Journal. Retrieved August 10, 2016.
  16. ^ Ace Canada, Timber Mart
  17. ^ "RONA and Ace Hardware International Announce Agreement for Master License of Ace Brand in Canada". Business Wire. July 29, 2014. Retrieved August 10, 2016.
  18. ^ "Theindonesiatoday.com". theindonesiatoday.com. Retrieved 3 December 2015.
  19. ^ "read - IMQ - Indonesia Market Quotes". imq21.com. Retrieved 3 December 2015.
  20. ^ "Ace hardware Opens 7th Store". December 2, 2011.
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