Ace Hardware
| File:Ace Hardware logo.svg Logo used since 2009 | |
| Company type | Retailers' cooperative |
|---|---|
| Industry | Retail (hardware) |
| Founded | October 25, 1924 in Chicago, Illinois, United States |
| Founder | Richard Hesse, E. Gunnard Lindquist, Frank Burke, Oscar Fisher |
| Headquarters | Oak Brook, Illinois , United States |
Area served | Worldwide (60 countries) |
Key people | John Venhuizen (President and CEO), Steven Burggraf (Chairman) |
| Products | Hardware retail products, home services |
| Revenue | $9.17 billion (2022) |
| $341 million (2022) | |
| $340.6 million (2022) | |
Number of employees | 12,500 (2022) |
| Website | www |
Ace Hardware Corporation is a United States-based hardware store retailers' cooperative with its headquarters situated in Oak Brook, Illinois. It holds the distinction of being the largest retail cooperative outside the grocery sector in the nation.
Established on October 25, 1924, originally under the name "Ace Stores," the enterprise adopted the title "Ace Hardware Corporation" in 1931. The company saw remarkable expansion following World War II, with sales more than tripling from the late 1940s through 1959. After founder and long-serving president Richard Hesse retired in 1973, Ace transitioned into a cooperative owned by its retailers. Wholesale sales exceeded $1 billion by 1985 and reached $5 billion by 2015. By 2019, Ace operated upwards of 5,200 outlets spanning 60 countries.
Supporting its worldwide operations, Ace Hardware manages 17 distribution centers within the United States and maintains additional facilities in China, Panama, and the United Arab Emirates, forming a robust supply chain network. In 2022, the company reported revenues of $9.17 billion alongside an operating income of $341 million and a net profit of $340.6 million. Its global workforce numbers around 12,500 employees.
Leadership includes John Venhuizen as President and CEO and Steven Burggraf serving as chairman of the board. Ace's cooperative business model fosters strong retailer alliances and efficient distribution channels, enabling it to sustain a competitive edge within the hardware retail marketplace.
History
In 1924, hardware merchants Richard Hesse, E. Gunnard Lindquist, Frank Burke, and Oscar Fisher merged their Chicago-based stores under the banner "Ace Stores" to enhance purchasing power and profitability. Inspired by World War I flying aces, Ace Stores was incorporated in 1928 and established its inaugural warehouse in 1929. The firm was renamed Ace Hardware Corporation in 1931.
By 1933, Ace comprised 38 retailers located throughout Illinois, Indiana, and Wisconsin. The launch of the Super Ace Store concept in 1946 contributed to wholesale sales surpassing $7 million by the late 1940s from a network of 133 stores. By 1959, wholesale sales had climbed to $24.5 million supported by 325 stores. In 1961, corporate offices and warehouse operations moved to Bedford Park, Illinois; additional warehouses opened in Northern California and Georgia to accommodate growth in Western and Southeastern regions.
Following Richard Hesse’s retirement in 1973, Ace relocated its headquarters to Oak Brook, Illinois in 1974 while inaugurating a distribution center in Addison. Ownership shifted as the company was sold to its independent retailers and restructured into a cooperative model where retailers became exclusive shareholders; meanwhile, the corporate entity concentrated on wholesale distribution. This approach propelled wholesale sales beyond $1 billion by 1985 and $5 billion by 2015.
During Roger Peterson’s tenure as CEO (1986–1995), sales surged from $801 million in 1983 to over $2 billion by 1993. To bolster Midwest logistics, a major distribution center was launched in Princeton, Illinois. In 1994, Ace introduced "The New Age of Ace," a strategic initiative focused on enhancing retail performance, operational efficiency, international expansion, and accelerating store openings—resulting in a 15% sales increase between 1993 and 1994.
Ace ascended as the largest hardware cooperative in 1996 after overtaking Cotter & Company. In 1999, technological upgrades enabled barcode system integration; by 2001 it had become America’s leading hardware wholesaler. Operating over 5,100 stores by 2002, annual hardline sales topped $3 billion with net profits exceeding $100 million by 2003.
In 2011, Ace launched Clark+Kensington premium paint products. The following year it opened a significant redistribution center in Suffolk, Virginia—the first tenant at CenterPoint Intermodal Center—and acquired Westlake Ace Hardware for $88 million. Valspar acquired Ace’s paint manufacturing operations under a long-term agreement in 2013. CEO John Venhuizen unveiled the "20/20 Vision" strategy in 2014 aimed at leveraging network strengths to improve customer service.
Distribution capabilities expanded with new centers opening in Wilmer, Texas and West Jefferson, Ohio during 2014; both facilities were further enlarged in 2019. That year also included acquisitions of Emery-Waterhouse (Maine) and Jensen Distribution Services (Washington), which merged into Emery Jensen Distribution LLC under subsidiary Ace Wholesale Holdings LLC to serve independent retailers outside the Ace network.
Starting in 2016, Ace earned J.D. Power’s "Highest Customer Satisfaction" award for home improvement retailers for ten consecutive years. In 2017, East Coast retail support was reorganized through consolidations into new centers located in Pennsylvania and New York while expanding Suffolk operations; additionally, a customer care center was established in Fort Myers, Florida that year. The company acquired e-commerce platform The Grommet but discontinued it in 2022.
In May 2019, Ace acquired ACO Inc., which operates fifty Great Lakes-area stores across Ohio and Michigan. Food City inaugurated its own Ace Hardware location in Tennessee during August 2022. March 2023 saw the opening of a new logistics facility spanning 1.1 million square feet in Visalia, California along with plans announced for a forthcoming retail support center near Kansas City, Missouri covering approximately 1.5 million square feet slated for completion by mid-2025. September of that year marked the debut of Ace’s new headquarters campus on Oak Brook’s former McDonald’s corporate site.
In May 2024, Ace Retail Holdings purchased Bishop Ace Hardware’s thirteen-store franchise chain based in central Illinois; these stores will continue operations throughout ownership transition. July 2024 celebrated opening of Ace’s five-thousandth domestic location alongside unveiling ELEVATE³ Ace—an experiential store format showcasing prominent brands—with rollout commencing January 2025.
Home services
Ace Hardware has deliberately broadened its scope into residential repair offerings to attract a younger demographic that prefers "do-it-for-me" solutions rather than traditional DIY projects. In September 2019, Ace acquired the Handyman Matters franchise, transitioning its 57 franchise locations to the Ace Handyman Services brand by March 2020. By 2022, this initiative expanded to encompass over 200 franchisees nationwide. Unlike typical contractors, these handymen—referred to as "Craftsmen"—are employed full-time by the company.
In December 2022, Ace made a strategic move into licensed plumbing by purchasing Legacy Plumbing, a Texas-based company. Legacy collaborated with Westlake Ace to introduce Ace Hardware Plumbing Services in Oklahoma City.
Continuing to diversify its home services division, Ace acquired twelve independent heating, air conditioning, plumbing, and electrical businesses under Unique Indoor Comfort in June 2023 from private equity firm Grove Mountain. This expansion was further solidified with the acquisition of Boston-based Unique Indoor Comfort in February 2024.
By June 2024, Ace Home Services had grown to operate 400 locations spanning 48 states and covering 5,000 zip codes. That same month, the company strengthened its footprint in licensed home services by acquiring Minyard Plumbing in North Carolina.
Advertising
Ace Hardware’s iconic jingle, initially "Ace is the place with the helpful hardware man," was revised in 1989 to adopt a gender-neutral tone using "folks." The brand has employed celebrity endorsements to boost visibility, featuring personalities such as Connie Stevens (1974–1978), Suzanne Somers (1979–1982), and NFL coach and commentator John Madden (1987–2009) in television advertisements.
In 1999, an Ace-branded insert included in This Old House magazine led to controversy when the publication lost an American Society of Magazine Editors nomination due to concerns over advertising content. In 2002, home improvement expert Lou Manfredini was named Ace’s official "Helpful Hardware Man" and media spokesperson, enhancing the company’s emphasis on expert-driven marketing.
Ace revamped its advertising approach in 2016 by showcasing store associates directly addressing customer needs through commercials featuring context-specific versions of the Ace jingle. This strategy emphasized product expertise and customer service as vital differentiators within the home improvement retail sector.
International operations
Ace Hardware launched its first international store in Guam in July 1963. The company established Ace International as a distinct division in 1990 and created an international board committee by 1994. Its global expansion included markets across Asia, the Caribbean, Latin America, and the Middle East. By 2002, Ace operated stores in 70 countries and maintained relationships with over one hundred international suppliers.
North America
In Canada, Tim-Br Mart Group secured licensing rights for the Ace brand in 2010. By February 2012, Ace operated approximately 400 locations outside the United States. Rona, Inc. obtained the master license for Ace Canada in 2014; following Lowe’s acquisition of Rona in 2016, management of Ace Canada was transferred to Lowe’s Winnipeg office (previously TruServ Canada). As of June 2016, there were 62 Ace stores throughout Canada, with Lowe’s Distribution Center beginning support for these outlets in 2017.
Peavey Mart acquired both Ace Canada and its master license in March 2020, overseeing service for 107 Canadian locations. However, Peavey Industries announced in June 2024 that it would terminate its partnership with Ace International by the end of that year. Following this decision, Ace International declared it would cease providing support and supply to Canadian Ace dealers starting in 2025.
In December 2021, Ace debuted its first store in Mexico utilizing a new turnkey franchise model.
Middle East
In 1991, the Al-Futtaim Group obtained the licensing rights to bring the Ace brand into Dubai, culminating in the opening of a flagship outlet in 2006.
Ace made its debut in Israel in 1993 with an initial four stores, growing to 25 by 2005. In January 2006, entrepreneurs Benny Gaon and Shlomo Zbeda purchased Ace Israel for $20 million, surpassing the bid from former owner Gad Zeevi. By 2007, the company intended to expand into Turkey and launched an initial public offering on the Tel Aviv Stock Exchange. Nonetheless, due to an economic downturn, these expansion plans were abandoned, and a workforce reduction of 15% was implemented in 2009. Ownership changed hands to Electra Consumer Products in 2012 and was subsequently acquired by Kedma Capital in 2016. By 2021, Ace Israel operated 34 outlets and was once again publicly traded under Kedma’s management.
In September 2013, Ace formed a partnership with Safi & Safi Enterprises to inaugurate a store in Afghanistan’s Mazar-e Sharif in 2014, supported by a distribution hub located in Kabul.
Oceania
By 2002, Ace had established six stores across Guam. In June 2014, Ace Hardware International became the wholesale distributor for Mitre 10, New Zealand's largest home improvement chain.
Asia
PT Ace Hardware introduced the brand to Indonesia in 1995 and went public in 2007. By 2010, it operated 39 outlets across 18 cities. As of January 2023, the network had expanded to 229 stores in 56 cities. After nearly three decades, Ace exited the Indonesian market on December 31, 2024, with plans to rebrand as Azko starting January 1, 2025.
Ace was launched in Malaysia by Giant Ace SDN BHD in 1996. By 2010, there were ten locations within Kuala Lumpur; as of January 2022, this number grew to 22 branches nationwide.
Ace Hardware Philippines Inc was established in 1997, opening its inaugural store at SM Southmall in Metro Manila. Currently, it operates over one hundred branches across the country and maintains affiliation with the SM Group of Companies.
Licensing deals were finalized for Taiwan in 1998 and for Singapore, Japan, and Hong Kong in 2000.
In 2006, Ace invested more than $300 million in merchandise sourced from China. The following year marked the opening of an outsourcing and warehousing facility in Shanghai and a shift of procurement operations away from Hong Kong.
Ace entered the Maldives market in 2011 through collaboration with Co-Load Maldives Pvt Ltd and had opened its third store there by 2022. Partnering with the Eugene Group, Ace sought expansion into South Korea in 2018 but encountered regulatory obstacles; nevertheless, it has since established four stores located in Seoul and Goyang. In November 2019, Ace expanded into Vietnam by launching a store in Ho Chi Minh City.