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Ace is the US’s most aggressive hardware wholesaler.
Ace Hardware was established over 75 years ago in Chicago by five retailers, although not in the form of a cooperative, as it now is. From the outset it was able to attract larger and more independently-minded retailers than its rivals at the time, Cotter und Servistar, which have since merged.
With the arrival of giant DIY chains as competitors, the management at Ace reacted very aggressively to help its member-owners develop new store formats and services – and the Ace dealers who had so valued their independence realized that too much independence was a high price to pay if one wanted to survive.
Today the company’s 5 100 members target the “convenience“ segment of the DIY market, backed up by Ace’s “vision 21“ strategy, which is based on five key elements: sharp retail pricing, category management, enterprise, customer service and staff training.
If Ace dealers are to prosper and grow, according to management, they must aim for a minimum of 5 % same-store sales growth.
Own-label paints feature prominently in the range.
Ace has developed a two-pronged pricing system for its retailers. It offers dealers a half-page “wrap“, containing 6 to 10 products that will be price leaders in the marketplace, to the monthly Ace circulars distributed to 80 million households. At the same time, however, Ace’s corporate research is identifying items on which dealers can increase prices to compensate for their more aggressive cut-price image.
The focus at Ace is now on category management and encouraging retailers to use computer data to concentrate on best-selling items and brands and to optimize product presentation with better organized displays. Ace wants its members to be seen as the place to go for key categories, such as lawn and garden, outdoor living etc.
Ace executives are underpinning the entrepreneurial thinking of retailers by seeking out new product categories to expand their range and increase sales – items such as gifts and other categories to attract women in particular into the stores.
While the major chains boast in their advertising about the excellence of their customer service, consumer research points to “customer service and/or friendly service“ being one of the basic strengths of independent retailers. Ace is therefore intensifying its range of training programmes to capitalize on this effect.
Product ranges and presentation are optimized through category management.
Ace is also the US’s most aggressive…
Ace Hardware was established over 75 years ago in Chicago by five retailers, although not in the form of a cooperative, as it now is. From the outset it was able to attract larger and more independently-minded retailers than its rivals at the time, Cotter und Servistar, which have since merged.
With the arrival of giant DIY chains as competitors, the management at Ace reacted very aggressively to help its member-owners develop new store formats and services – and the Ace dealers who had so valued their independence realized that too much independence was a high price to pay if one wanted to survive.
Today the company’s 5 100 members target the “convenience“ segment of the DIY market, backed up by Ace’s “vision 21“ strategy, which is based on five key elements: sharp retail pricing, category management, enterprise, customer service and staff training.
If Ace dealers are to prosper and grow, according to management, they must aim for a minimum of 5 % same-store sales growth.
Own-label paints feature prominently in the range.
Ace has developed a two-pronged pricing system for its retailers. It offers dealers a half-page “wrap“, containing 6 to 10 products that will be price leaders in the marketplace, to the monthly Ace circulars distributed to 80 million households. At the same time, however, Ace’s corporate research is identifying items on which dealers can increase prices to compensate for their more aggressive cut-price image.
The focus at Ace is now on category management and encouraging retailers to use computer data to concentrate on best-selling items and brands and to optimize product presentation with better organized displays. Ace wants its members to be seen as the place to go for key categories, such as lawn and garden, outdoor living etc.
Ace executives are underpinning the entrepreneurial thinking of retailers by seeking out new product categories to expand their range and increase sales – items such as gifts and other categories to attract women in particular into the stores.
While the major chains boast in their advertising about the excellence of their customer service, consumer research points to “customer service and/or friendly service“ being one of the basic strengths of independent retailers. Ace is therefore intensifying its range of training programmes to capitalize on this effect.
Product ranges and presentation are optimized through category management.
Ace is also the US’s most aggressive…
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