The pandemic did not treat many businesses kindly. Numerous restaurants and small retailers suffered greatly and shut down in droves.
Despite foot traffic returning to nearly normal rates at shopping centers and high streets, this resurgence came too late for numerous enterprises. Nevertheless, one industry flourished throughout and following the pandemic: home renovation.
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Lowe's ( LOW ) and Home Depot ( HD ) experienced significant expansion during the pandemic as Americans dove into various home renovation tasks, from repainting their bedrooms to completely overhauling their bathrooms.
Moreover, bread baking was not the sole pastime that gained traction during the lockdowns; numerous individuals took up additional hobbies such as gardening and woodworking.
The one thing all these hobbies and enhancement projects share is the requirement for various tools and materials.
Even as numerous individuals opted for big-box stores for items such as shovels or drills, along with cement or grout, local businesses like Menards, True Value, and notably Ace Hardware, also thrived during this period.
The Home Depot and Lowe's do not concentrate their efforts on rural regions.
If Home Depot and Lowe's are comparable to Walmart and Target in the retail sector, then Ace Hardware is more akin toTrader Joe's.
At Home Depot or Lowe's, you can usually find between 35,000 and 40,000 items (referred to as stock-keeping units or SKUs). In contrast, Ace Hardware tends to carry approximately 23,000 SKUs.
Ace Hardware's approach focuses on integrating our stores deeply within the communities and local areas where we reside,” stated Ace Hardware’s Chief Marketing Officer, Kim Lefko, exclusively for Wiseova. “Most of our outlets are independently owned and managed, fostering unparalleled levels of reliability and customization,” added Lefko.
Related: Lowe's seals billion-dollar deal to compete with Home Depot
Ace is the biggest non-food retail co-op in the U.S., which means these stores operate independently yet collaborate on purchasing and promotional efforts to boost their market strength.
Unlike competitors such as Home Depot and Lowe's, which concentrate on standardized offerings, Ace thrives through highly localized relevance. The proprietors of Ace stores have the flexibility to customize their product range, services, and strategies according to the specific demands of their clientele. This could mean featuring a fishing section in Florida, offering exclusive home goods in Texas, or stocking surfboards in California.
Lefko stated, 'We combine a community-centric approach with the strength of a nationwide brand, an exceptional supply chain, and multi-channel accessibility.'
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The approach centered around the community has proven effective for the business.
At the beginning of this year, Ace introduced a subscription service aimed at providing customized lawn care products right to their customers' doorsteps. Known as "Ace YardRx," this initiative assists homeowners in getting ready for upcoming seasons according to their specific location.
The program utilizes satellite imagery to gauge the dimensions of a homeowner’s yard before suggesting products tailored to what it observes. In my situation, the satellite image detected patches with bare soil and sparse grass on my lawn, leading to product suggestions aimed at promoting denser turf growth and weed suppression.
Ace Hardware will be launching new outlets in 2025.
In the initial three months of 2025, Ace launched 45 new domestic outlets, marking a rise of 112 locations compared to the same period in 2024. By the close of this quarter, the firm’s overall tally of stores within the U.S. stood at 5,177.
This exceeds the total number of locations for Home Depot, Lowe's, and Menards together.
According to the company's most recent earnings r Ace Hardware Corporation likewise announced record first-quarter 2025 revenues totaling $2.2 billion, marking an uptick of $89.4 million (or 4.2%) compared to the same period in 2024. However, net income stood at $30.3 million for the initial three months of 2025, which represents a decline of $16.6 million relative to the first quarter of 2024.
Related: Well-known Home Depot competitor declares Chapter 11 bankruptcy
“A 35 percent increase in our digital business, 0.6 percent same-store-sales growth from stores in the hardware format, and 45 new domestic stores highlighted our record first-quarter revenue,” said Ace Hardware President and CEO John Venhuizen in a company statement.
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