The Helpful Hardware

Ace celebrates, reinvents its niche

By James Fisher

Jim Fisher is CEO of IMST Corp. that specializes in site selection and sales forecasts, facility operations analysis, existing site evaluation and market analysis. Contact Jim at (800) 231-4678 or jfisher@imstcorp.com.

The majority of us can probably finish the above phrase without really even thinking about it. “ACE is the place for the helpful hardware man.” Only one problem — it has been changed. No longer is it “man,” rather, it has become “folks.” Why has such a basic change been made? Mainly because Ace encourages its retailers to cater to a new breed of home improvement shopper, one that now includes 40 percent women in its stores and a declining percentage of do-it-yourselfers as reported in a recent newspaper article.

Ray Griffith, CEO, Ace Hardware, stated: “We think we have a great upside in simply filling in the marketplace around the big boxes and offering the consumer a different kind of value and a different kind of helpfulness that the big boxes simply can’t or don’t want to do.” Ace is emphasizing convenience and the upgrading the aesthetics of the stores (sound familiar and relevant?). One industry analyst recently said, “it’s not a question of price, or they’re (Ace) out of business a long time ago. It’s a question of convenience and service. Their stores are bright, organized and have the key (product) categories. They have carved out a niche, and it works.”

It is so true that what applies to one sector of the retail and service industries nearly always applies to all sectors of the two industries. The lessons that can be learned from studying the success of such companies as Ace (and also True Value) apply to the convenience sector with exactly the same amount of relevance. Ace has been required to not only respond to, but also succeed in competing against, ever-proliferating giants in the home improvement sector. It has been placed in the role of David (as the protector of the small-hardware-store owner) as it competes daily against Goliath. And, in terms of performance it is winning the battle in many ways. Most notably, it just completed its best sales year since 1998, and out-performed both Lowe’s and Home Depot in same-store sales growth for the fourth year in the last five. Ace likes being the underdog because we generally all applaud the efforts of the underdog; just ask about the ‘69 Mets.

The 83- year-old company fully recognizes and fulfills the primary need to focus on convenience and knowledgeable service: two areas of primal emphasis that must be addressed and fulfilled on a minute-by-minute basis within our sector of the retail industry.

What appears to be a growing major problem within our retail sector is a loss of vision among many companies, organizations, and associations as to why they indeed exist — to serve the “entrepreneur/independent retailer” within our own industry. Ace works every day on behalf of the entrepreneur/independent retailer. There are not too many retail sectors more mature than the hardware/home-improvement sector. Yet, a small entrepreneurial company such as Ace experiences recurring annual financial success by not loosing focus of who it exists to serve. Is that same truth being applied daily within our sector? I think not.

It is long past time for major players (not retailers) within this industry to step up and provide the tools and opportunities requested and needed by our own entrepreneurs to succeed and remain viable entities for many years to come. Suppliers, organizations and associations can either live-up to this assigned role (which they have always had yet not always honored) to ensure that entrepreneurial success will continue to flourish, or be prepared to suffer the fate caused by a continuously declining number of independent companies who try on a daily basis to serve the core daily customer across America.

The industry as a whole must create the innovative opportunities to aid the retailer with the ability to think beyond all previous experience.