Ace Hardware VP reveals ‘absolute imperative’ changes to 4,994 stores and experience ‘you can’t find anywhere else’

ACE Hardware is investing more than $1 billion to bring a new store model to nearly 5,000 locations.

John Venhuizen, CEO, said the upgrades will hit new and existing stores over the next five years.

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As part of the Elevate Ace project, locations will be updated with showrooms focused on popular brands, new product assortments, outdoor sections and enhanced customer service.

Ace Hardware built a 13,000-square-foot model store at its recent convention in Chicago.

“[We] I wanted to create more than just a space where customers could shop, but a space where they could connect,” said Dale Fennel, vice president of merchandising, in an interview with Diving into Retail.

“We believe Elevate Ace is a fundamental change to our store model.”

Experiential retail is “one of the absolute imperatives” for the company, he added.

As Ace Hardware celebrates its 100th anniversary, it hopes to create an in-store shopping experience that cannot be matched online.

The store will focus on the brands and categories that are behind most of the company’s current growth.

“We really want to elevate these brands and create an immersive shopping experience that you can’t find anywhere else,” said Fennel.

Ace Hardware opened 111 new stores through June and plans to open 200 by the end of the year.

Globally, there are more than 5,800 stores in 60 countries. Elevate Ace will launch in 4,994 stores.

ALL ABOUT CUSTOMERS

Ace Hardware last updated its store design five years ago, and the industry has changed since then.

Fennel said the company is working to improve the customer experience by offering extra training to front-line associates.

These employees will be able to act as brand advocates, helping guide customers through purchases.

“We are really focused on trying to understand what the customer wants, whether by brand or features and benefits, and offering them all the products that are available at Ace, whether in the store or in the case of grills, for assembly. and delivery,” Fennel said.

He explained that the store operates in a slightly different retail segment than Lowe’s or The Home Depot, which have seen declining sales in more recent quarters.

Lowe’s fell 4.4% and Home Depot 2.3%, while Ace reported its first-quarter revenue grew 2.5% year over year.

“We know there are different shopping occasions and that customers will shop at different retailers, but the separation of home preservation and home improvement is an important differentiator between us and the big box stores,” said Fennel.

Big Lots also announced “aggressive plans” for a change in business after nearly 300 closures were announced.

Aldi has launched a new personalized online shopping experience.