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Another neighbourhood supplier

Ace Hardware, the dealer-owned cooperative from the United States, plans to establish a third store type in the Philippines. The market for this concept is an interesting one

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Shoppers for fixtures, home décor and do-it-yourself items in the Philippines may soon be presented with a new store concept by the local franchisee of American DIY giant Ace Hardware. The new format, called Ace Hardware Express, is in the works and may soon be the third fascia for Ace Hardware in the Philippines.
Once introduced, Ace Hardware Express would most likely be the American chain's quick-turnover, no-frills DIY store in this South-east Asian country of 96 million people.
Bernard Lim, spokesman for Ace Hardware Philippines, describes the prospective format as a "mom-and-pop store similar in concept to a 7-Eleven."
Not that it would be selling food products. What the format will likely have on the shelves are the home and hardware sector?s array of fast-moving consumer goods. "What it means is that the new stores will be carrying hardware items, but confined to basic and impulse items; none of the fancy stuff," Lim says. However, no exact date has been set for introducing the new format so far.
Eric Knox, regional manager for Asia of Ace Hardware Corporation, describes Ace Hardware Express as a small-store concept, around 2 800 m² or less, that would be "much more conveniently located for the customers".
"Due to size restrictions, the stores would carry a much smaller assortment than the larger stores located in the malls and would have an assortment geared towards basic household and consumable items," he explained.
The DIY franchisor has discussed the concept in several Asian markets but no store in this format has been opened so far. "We basically looked at some of the Asian markets and saw there was an opportunity to put a small-store format into the neighborhoods rather than in shopping malls," Knox says. "We have only discussed the concept on a very high level in markets like the Philippines, Indonesia and Malaysia. Recently Ace Philippines has been further exploring the possibilities of expanding with this format."
The concept could work for Filipinos, who still get their immediate needs from the "sari-sari" corner stores they patronize, where packaged goods are unbundled and sold in smaller units or by the piece (ie, one can buy a single cigarette, instead of an entire pack).
Ace Philippines currently operates under two formats: DIY, the brand that carries home improvement products, and Ace Builders, the box-type store that provides DIY buyers with a more comprehensive selection of products, including building materials.
The Philippine franchise…
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