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Ace Hardware

Ace Hardware Corporation is a retailer-owned hardware cooperative founded in 1924 by a small group of Chicago-area hardware store owners who united to form Ace Stores, Inc., enabling independent retailers to purchase merchandise in bulk at lower costs. Renamed Ace Hardware Corporation in 1931, the company has grown into the world's largest hardware cooperative, with over 6,000 independently owned and operated stores across more than 60 countries and a total annual revenue exceeding $9.5 billion (as of 2024). Known for its slogan "Ace... the Helpful Place," Ace emphasizes community-focused service, offering a wide range of home improvement products, tools, and paints, while adapting store sizes to local neighborhood needs from small urban outlets to large rural formats. The model allows local entrepreneur-owners to retain while benefiting from centralized buying power, support, and private-label brands like Clark+Kensington paints, which have earned top consumer satisfaction rankings. Internationally, Ace expanded starting in 1975 with its first store in and now operates in regions including the Americas, , Europe, and Oceania, providing localized products and global distribution to franchise partners. Over its nearly century-long history, Ace has achieved milestones such as surpassing $1 billion in wholesale sales by 1985 and consistent recognition for customer satisfaction, including being ranked highest by for 16 of 17 years from 2007 through 2023, and second in 2025. With more than 71 million Ace Rewards members and $357 million in annual distributions to owners (as of 2024), the company continues to prioritize helpful and robust in the competitive sector; in 2025, it opened its 100th new store and reported record third-quarter revenues of $2.5 billion.

History

Founding and early development

Ace Hardware originated in Chicago, Illinois, in 1924, when five independent hardware store owners—Richard Hesse, E. Gunnard Lindquist, Frank Burke, Oscar Fisher, and William Stauber—united to form a cooperative venture known as Ace Stores. The primary goal was to pool resources for of merchandise, enabling smaller retailers to secure better prices and compete more effectively with larger chain stores. This alliance was inspired by the need to enhance profitability through shared buying power, and the name "Ace" was chosen in honor of fighter pilots, symbolizing precision and reliability. Incorporated as Ace Stores Inc. in 1928, the organization established its first warehouse in Chicago to centralize distribution and support member stores. The onset of the in 1929 presented significant economic pressures on independent retailers, including reduced consumer spending and intensified competition, though Ace's cooperative model helped members navigate these hardships by maintaining cost efficiencies. By , the network had expanded to 38 retailers, demonstrating resilience amid widespread business failures during the era. Sales reached over $650,000 from 41 dealer-members by the mid-1930s, supported by the doubling of warehouse capacity to accommodate growth. This period solidified the foundational principles of collective purchasing and operational support that defined the organization's early success. In 1931, the company rebranded as Ace Hardware Corporation, shifting emphasis from general stores to a specialized focus on hardware products and supplies, which better aligned with the evolving needs of its members and the retail landscape. This name change marked a strategic pivot to strengthen the cooperative's identity in the hardware sector, laying the groundwork for further operational principles like standardized and joint efforts. By emphasizing shared buying power, Ace Hardware established a model that empowered independent owners while fostering steady early development through the turbulent .

Postwar expansion and cooperative formation

Following , Ace Hardware capitalized on the burgeoning do-it-yourself (DIY) movement in the United States, where rising homeownership and limited professional services encouraged consumers to undertake projects using affordable tools and supplies. This shift positioned the company for rapid expansion, as its wholesale model allowed independent retailers to access power and compete with larger chains. By the end of the , Ace had grown to 325 stores with wholesale sales reaching $24.5 million. Throughout the , Ace continued its geographic and operational expansion to meet surging demand. In 1961, the company acquired its first to streamline inventory management and ordering processes for dealers. By 1963, it had begun penetrating the and West regions more aggressively, establishing a presence in nearly all 50 states by the decade's end. To support this nationwide footprint, Ace opened its first regional distribution centers outside Chicago in 1969, located in and , which improved logistics efficiency and reduced delivery times for members. The structure that defines today emerged in the early 1970s amid leadership changes and a desire for greater retailer control. In 1973, upon the retirement of co-founder and longtime president Richard Hesse, the company was sold to its member-dealers, transitioning from a centralized wholesale operation to a retailer-owned . This shift empowered independent owners as shareholders, with each required to purchase a minimum stake and contribute to shared initiatives like . The full conversion was completed by 1976, when sales volume hit $382 million, and headquarters relocated to , solidifying the model's focus on mutual support and profit-sharing through rebates.

Modern growth and milestones

Ace Hardware's modern era, beginning in the late , marked a period of sustained expansion and financial milestones that solidified its position as a leading cooperative. By 1985, the company achieved its first $1 billion in annual wholesale sales, serving as a pivotal transition into broader growth. This momentum continued, with revenues reaching $5 billion in 2015, reflecting robust increases in wholesale and retail operations. By 2022, Ace reported consolidated revenues of $9.2 billion, a 6.7% rise from the previous year, driven by strong same-store sales and international contributions. Store network expansion paralleled these financial gains, with Ace operating 5,746 locations worldwide by the end of 2022, encompassing all 50 U.S. states and 70 countries. In 2024, the cooperative opened its 5,000th U.S. store in , highlighting accelerated domestic growth amid its centennial year. By August 2025, Ace celebrated the opening of its 100th new store that year, on track to exceed 175 total new locations by year's end, building on over 930 openings in the prior five years. The 2024 centennial celebration underscored Ace's commitment to and , with announcing over $1 billion allocated for new stores and remodels over the subsequent five years to enhance customer experiences through formats like the Elevate Ace concept. This initiative supported ongoing expansion, including the addition of 200 new stores in 2024 alone. In September 2025, Ace integrated with for nationwide on-demand delivery from over 4,000 local stores, expanding access to hardware and products and adapting to evolving consumer demands. In the third quarter of 2025, Ace reported revenues of $2.5 billion, a 5.5% increase from the prior year.

Corporate Structure and Business Model

Ownership and governance

Ace Hardware operates as a retailer-owned , in which independent store owners serve as shareholders and collectively own the . This structure allows local entrepreneurs to benefit from shared resources while maintaining control over their individual operations. As of 2025, the encompasses approximately 6,000 independently owned stores across about 60 countries, enabling members to leverage without the typical corporate oversight found in traditional models. Governance of the cooperative is managed through a elected by its members, ensuring that decision-making reflects the interests of the retailer-owners. The organization is headquartered in , where strategic operations, including centralized purchasing and marketing, are coordinated to support local autonomy. John Venhuizen serves as president and CEO, overseeing the cooperative's global initiatives and member services as of 2025. Ace Hardware provides opportunities for new retailers to join the , functioning similarly to a model but without ongoing fees due to its structure. Prospective members must meet financial requirements, including a minimum of $700,000 and liquid capital of $350,000, with total initial investments typically ranging from $650,000 to $1,500,000 or more. Initial fees include a $5,000 fee, a $5,000 subscription, and brand assessment costs of $6,000 to $12,000, alongside comprehensive support such as , , , and assistance to balance local decision-making with cooperative-wide efficiencies.

Financial performance

Ace Hardware's financial performance has demonstrated consistent growth, driven by its model and strategic expansions. In 2022, the company reported record annual revenues of $9.17 billion, marking the first time it surpassed the $9 billion threshold. This figure represented a 6.7% increase from 2021, fueled by strong demand in key categories such as hardware, tools, and outdoor products. By 2024, revenues reached $9.5 billion, a 3.9% rise from 2023, with wholesale revenues comprising $8.7 billion of the total. The company's primary revenue streams derive from wholesale sales to its network of independent member stores, which account for approximately 92% of overall revenues, alongside support for retail operations and franchise services. These wholesale activities benefit from the scale of the , enabling efficient distribution and inventory management across more than 5,900 locations globally. To sustain this momentum, Ace Hardware announced a $1 billion investment plan spanning to 2028, focused on opening new stores and remodeling existing ones to enhance and drive sales growth. For the first three quarters of 2025, consolidated revenues totaled $7.5 billion, reflecting continued growth and positioning the company to exceed $10 billion for the full year. Looking ahead, ongoing store expansions—building on milestones like the opening of over 930 new locations in the past five years—position Ace Hardware for projected revenues exceeding $10 billion, supported by 2025 openings that will expand its footprint further. The structure bolsters economic resilience by leveraging , which delivers cost savings to members through reduced expenses and optimized supply chains. Private-label brands, such as those in and lines, provide higher margins and reinforce member profitability amid competitive pressures.

Products and Services

Retail offerings

Ace Hardware stores primarily offer a wide range of hardware and products, focusing on essential categories for both do-it-yourself (DIY) enthusiasts and professional users. Key product lines include tools, with hand tools such as , hammers, wrenches, and screwdrivers, as well as power tools like drills, , and sanders from brands including and . Plumbing supplies encompass faucets, pipes, fittings, toilets, sinks, and water heaters, while electrical offerings feature wiring, outlets, switches, lighting fixtures, and circuit breakers to support residential and light commercial projects. Paint and related supplies form another core category, featuring interior and exterior paints, stains, primers, and accessories from brands like and , available in various finishes for walls, trim, and outdoor surfaces. Lawn and garden products include fertilizers, seeds, mulch, gardening tools, and outdoor power equipment such as mowers, trimmers, and blowers, alongside seasonal items like grills and smokers from and other manufacturers. These categories are complemented by hardware essentials, including fasteners, locks, hinges, and shelving systems. Ace Hardware emphasizes products under the Ace Brand, which includes over 10,000 stock-keeping units (SKUs) across tools, hardware, and home goods, providing affordable alternatives to national brands while maintaining quality standards. Stores typically operate in a small-format layout, with an optimum size of 8,000 to 15,000 square feet, enabling them to stock more than 100,000 SKUs tailored to local community needs. In addition to product inventory, Ace Hardware provides convenient in-store services such as custom mixing at The Paint Studio, where colors are matched to customer specifications using advanced . Participating locations also offer options, including tools like augers, mixers, and lawn aerators, to support short-term project needs for DIY consumers and contractors. These services enhance accessibility, allowing customers to complete tasks efficiently without large upfront purchases.

Home improvement services

Ace Hardware expanded its professional service offerings through the acquisition of Handyman Matters in 2019, which was rebranded and launched as Ace Services in 2020 to provide "do-it-for-me" home repair solutions. This model targets minor repairs, maintenance, and small renovations, such as , , and fixture installations, complementing the products available at Ace stores. By August 2025, Ace Services had grown to nearly 400 territories operated by over 200 owners across 47 U.S. states, enabling coverage in more than 5,000 ZIP codes. To broaden its capabilities in licensed trades, Ace Hardware acquired Legacy Plumbing, a Dallas-area residential service provider, in December 2022, marking its entry into specialized operations. In May 2023, the company acquired Unique Indoor Comfort Holdings, a portfolio of 12 independent HVAC, , and electrical firms primarily in , enhancing services for heating, cooling, and related systems. This acquisition saw further expansion in 2024 with the addition of Boston Unique Indoor Comfort, integrating HVAC and expertise in the region. Later that year, in June 2024, Ace acquired Minyard Plumbing, a North Carolina-based provider of residential and solutions, to strengthen its Southeast presence. These acquisitions operate under Ace Hardware Home Services, offering integrated solutions for HVAC installation and repair, plumbing diagnostics and fixes, and electrical work, all performed by licensed professionals to address needs beyond basic tasks. The franchise structure emphasizes local ownership and community-focused service, with operators trained to uphold Ace's standards for reliability and customer satisfaction.

Marketing and Branding

Advertising campaigns

Ace Hardware's advertising campaigns have evolved significantly since the , initially focusing on television spots that highlighted the brand's commitment to helpful service and local expertise. Early TV advertisements, such as those featuring celebrities like in 1976, emphasized the role of knowledgeable staff in assisting customers with needs, often set in everyday retail scenarios to underscore accessibility and reliability. These campaigns positioned Ace as a neighborhood resource, differentiating it from larger competitors through portrayals of personalized, expert advice. A of Ace's promotional efforts is its iconic jingle, "Ace is the place with the helpful hardware man," which debuted in the to reinforce the theme of dependable assistance. In 1989, the jingle was updated to the more inclusive "Ace is the place with the helpful hardware folks" to promote , marking a shift toward broader appeal while retaining its catchy melody. The jingle became a staple in national TV , with Ace allocating over $190 million annually to such efforts by the to support retailer visibility. In 2016, Ace revitalized the campaign through the "Ace is the Place" initiative, created by agency O'Keefe Reinhard & Paul, which incorporated humorous variations of the jingle tailored to everyday scenarios like paint selection or tool mishaps. Spots such as "Don't Eat Paint" used witty twists on the lyrics—e.g., "Ace is the place for a taste before you buy the whole meal"—to illustrate practical in-store solutions while featuring real store owners for authenticity. This approach blended nostalgia with relatable humor, airing across 25 TV commercials to engage families in common DIY challenges. Entering the 2020s, Ace shifted toward digital strategies, integrating social media and influencer partnerships to target DIY enthusiasts, particularly millennials and Gen Z. Campaigns on platforms like Instagram promoted user-generated content for projects such as home renovations, complementing traditional TV with targeted online ads that drove a 17% increase in digital business following a $23 million spend boost in 2023. In August 2025, Ace launched RedVest Media, its retail media network in partnership with Epsilon Retail Media, enabling targeted advertising across digital channels and in-store signage using first-party data from its loyalty program. This evolution maintained the core message of helpfulness while adapting to online behaviors, including interactive tutorials and app-based promotions. Seasonal campaigns, such as spring gardening initiatives, exemplify Ace's focus on timely relevance, with TV spots like "Hand-Picked for Spring" in 2017 offering discounts on mulch, soils, and tools to inspire outdoor projects. Similar promotions continued into the 2020s, leveraging digital channels for real-time deals on lawn care and planting supplies, aligning with peak consumer demand periods. In November 2025, Ace introduced the 'Wrap It in Red' holiday gift campaign, featuring themed gift guides in stores and online for categories like and to promote seasonal shopping. These efforts, part of the broader national advertising allocation exceeding $190 million yearly, prioritize high-impact, context-driven messaging to sustain .

Brand partnerships and ambassadors

Ace Hardware has a long history of leveraging celebrity spokespeople to promote its brand and embody its "helpful place" ethos. In the 1970s and early 1980s, the company featured actresses from 1974 to 1978 and from 1979 to 1982 in television commercials, highlighting everyday solutions. These endorsements helped position Ace as approachable for family-oriented customers during its expansion era. From 1987 to 2009, former NFL coach and broadcaster John Madden served as a prominent spokesperson, appearing in numerous advertisements that tied into his football persona to emphasize reliability and community support. This partnership extended to NFL-related sponsorships, where Madden's involvement amplified Ace's visibility among sports fans through cross-promotional efforts during the league's seasons. Since 2002, home improvement expert Lou Manfredini has been Ace's primary media spokesperson, known as "Ace's Home Expert," providing advice on radio, television, and digital platforms to guide consumers on projects ranging from basic repairs to complex renovations. In addition to individual ambassadors, Ace has pursued strategic partnerships to differentiate itself from larger competitors like , emphasizing localized service and convenience. A key 2025 initiative was an exclusive nationwide collaboration with , launched on September 9, enabling on-demand delivery from over 4,000 U.S. stores to enhance accessibility and compete directly in the home improvement delivery space. Ace also engages with digital influencers through programs featuring DIY creators on platforms such as and , collaborating with content producers to demonstrate product uses in tutorials and home projects. These partnerships target younger demographics, fostering by integrating Ace tools into authentic, .

International Operations

North America

Ace Hardware maintains a dominant presence in the United States, where it operates over 5,200 independently owned stores as of 2025, including the opening of its 5,000th domestic location in , in 2024. The cooperative's stores emphasize a neighborhood format, providing localized hardware, tools, and essentials tailored to community needs across all 50 states. In 2025, Ace continued this expansion momentum, reaching its 100th new store opening in August and projecting over 175 additional locations by year-end, supported by 17 U.S. distribution centers to ensure efficient operations. In Canada, Ace Hardware supported 107 stores under banners such as Ace Hardware, Ace Country & Garden, and Ace Building Centre until the end of 2024. Following the end of the agreement effective January 2025, Ace International discontinued direct supply and support, with these locations transitioning to other brands or independent ownership, such as , while maintaining a community-oriented model. Ace Hardware entered in 2021 through a franchise model, opening its first store in on October 28. The expansion targeted urban areas like , with initial plans for 13 additional stores by the end of 2021, leveraging partnerships for local warehousing and distribution to adapt product assortments to regional preferences. As of 2025, operations in remain limited, with no large-scale retail network established. The company's Caribbean operations include a strong foothold in with 16 stores and additional outlets across islands such as , , St. Maarten, St. Lucia, and . These locations prioritize resilience to regional challenges, stocking hurricane preparation and recovery supplies like tarps, generators, and sealants to support communities in hurricane-prone areas.

Asia

Ace Hardware maintains a notable franchise-based presence in , particularly in , where it has adapted its model to local markets through partnerships and support. The company's arm, Ace International, established in 1990, plays a central role by providing global branding, private-label products, and distribution networks to support retailers across the region. In , Ace Hardware established a stronghold with rapid growth, operating 248 stores by early 2025 before undergoing a significant transition. The agreement expired at the end of 2024, leading to a full rebrand of all locations to the local brand Azko under PT Aspirasi Hidup Tbk starting January 1, 2025, marking the end of direct Ace operations in the country while preserving the retail infrastructure. This shift highlights challenges in long-term sustainability amid local market dynamics and regulatory changes. The represents another key market, with Ace Hardware operating 244 stores nationwide as of 2025, distributed across (185 stores), Visayas (34 stores), and (25 stores). These locations emphasize essentials tailored to urban and rural needs, contributing to the company's status as one of the leading hardware chains in the country. In , Ace Hardware's involvement focuses on joint ventures and infrastructure rather than extensive retail , including a dedicated distribution facility to facilitate product sourcing and logistics for . This approach supports broader supply needs without a large network of consumer-facing stores. efforts in and other Southeast Asian countries like and continue through franchise opportunities, with Ace International enabling localized adaptations such as tropical climate-suited and building materials to meet regional demands. As of 2025, these markets contribute to Ace's overall international footprint of over 580 stores across and beyond, though specific growth targets emphasize sustainable franchise development amid diverse cultural and economic challenges.

Middle East

Ace Hardware entered the market in the early 1990s through strategic partnerships with local conglomerates to facilitate regional expansion. The secured licensing rights in 1991, marking the debut of the first Ace store in the (UAE), which laid the foundation for operations in the (GCC) countries. This partnership has since grown to encompass and , with 10 stores operational across these three nations as of 2025, including flagship locations at Festival City and in the UAE that emphasize premium solutions. In , Ace Hardware operates via a partnership with the Saudi Company for Hardware (SACO), the kingdom's leading retailer and a major global distributor of Ace products. SACO manages 33 stores spread across 18 cities, providing a comprehensive network for , tools, and essentials tailored to local needs. The collaboration, established as part of Ace's international , has enabled steady growth, with stores offering over 45,000 products in formats ranging from compact outlets to large superstores exceeding 24,000 square meters. Ace Hardware established its presence in in 1993 through a dedicated franchisee, Ace Israel Ltd., starting with a limited number of outlets and expanding to serve urban and suburban areas nationwide. By 2021, the Israeli network comprised 34 stores, reflecting robust growth in a competitive market; this has increased to approximately 30 locations as of 2025, focusing on diverse needs. Operations in highlight Ace's adaptability, with stores stocking a wide array of tools, paints, and DIY supplies to support local trends. Kuwait represents another key entry point, with Ace Hardware launching its first store in 1991 under the Al-Hasawi Group and now operating multiple branches, including prominent sites in Al Rai, , and Egaila. These outlets cater to the expatriate-heavy population by prioritizing high-quality hardware, outdoor equipment, and smart home technologies alongside traditional offerings. Across the , Ace Hardware's approximately 100 stores as of 2025 emphasize premium and tech-oriented products to appeal to affluent communities and growing urban developments, such as integrated smart home systems and luxury finishes. However, the region's operations contend with challenges, including long-distance imports from global distribution centers like the one in the UAE and navigating diverse regulatory environments across borders. Cultural adaptations include localized to align with regional preferences, ensuring product assortments support modern lifestyles in high-growth markets like the UAE and .

Oceania

Ace Hardware's presence in Oceania traces back to its pioneering expansion into in , establishing the company's first international store and laying the foundation for regional growth. This early entry facilitated local integration in the Pacific islands, where Ace now operates through dedicated outlets and s. By the early , operations in Guam had expanded significantly, reflecting adaptations to the island's unique hardware demands. Today, Ace maintains a footprint across several Pacific territories, including the with Ace Hardware Micronesia, via Ace Hardware French Polynesia, and the through a partnership with Joeten Ace Hardware. These efforts have resulted in over 20 Ace-affiliated locations in the Pacific islands, emphasizing community-oriented retail in remote and coastal settings. Further expansion in Oceania occurred through strategic partnerships in Australia and New Zealand, particularly with the Mitre 10 retail network. In June 2014, Ace Hardware International announced an agreement to serve as a wholesale supplier to Mitre 10 New Zealand, enabling the cooperative's 84 independent stores to directly source Ace products and integrate them into their inventories. A similar partnership exists with Mitre 10 Australia, supporting operations across more than 300 stores nationwide and allowing for localized product distribution without full rebranding. These collaborations, rather than outright acquisitions, have enabled Ace to penetrate the competitive home improvement market in these countries, with over 50 stores in Australia actively leveraging the partnership by 2025. This model promotes local autonomy while providing access to Ace's global supply chain, contributing to a regional network exceeding 200 stores overall. In response to Oceania's diverse geography, including vast rural areas and extensive coastlines, Ace Hardware has tailored its offerings to include specialized outdoor and hardware. Products such as corrosion-resistant fasteners, boat maintenance supplies, and rugged outdoor tools address the region's environmental challenges, from tropical climates in the Pacific islands to variable weather in and . This focus enhances relevance for local customers engaged in boating, farming, and . Complementing physical stores, Ace has prioritized growth, with online sales increasing over 25% year-to-date as of 2025 through broader initiatives that facilitate regional and access through networks. Sustainability remains a key pillar of Ace Hardware's operations in , aligning with stringent regional environmental regulations. The company offers eco-friendly tools and materials, such as low-VOC paints and recyclable hardware, while 85% of its global stores—including those in the region—implement sustainable practices like energy-efficient lighting and waste reduction programs. In Pacific islands and , these initiatives support local efforts to minimize ecological impact, with programs in place at 69% of affiliated locations to promote responsible amid growing demand for green solutions.

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