Ace Hardware Corporation is more than your neighborhood hardware store. It is also the world’s largest retail hardware cooperative and the largest non-grocery American retail cooperative. Modestly, with over 5,200 locations spanning throughout 60 countries and 17 distribution centers, Ace Hardware truly maintains a global presence with a local touch.
But how did it achieve this success? The story of Ace Hardware goes as far back as 1924, when three Chicago entrepreneurs decided to join together and form a purchasing and advertising partnership among independently-owned hardware stores. They named their new company, styled after the ace fighter pilots of World War I that were able to overcome any obstacle.
In 1931, “Ace Stores” became “Ace Hardware Corporation,” and the business grew throughout the country. By the end of the 1940s, Ace had posted wholesale sales of over $7 million from the 133 stores it was supplying. On its 35th anniversary in 1959, this had more than tripled to wholesale sales of $24.5 million from 325 stores.
In 1973, Ace Hardware underwent a dramatic change when its founder and long-time president, Richard Hesse, retired, and the company was sold to its retailers and restructured as a cooperative. This meant that independent retailers became the exclusive shareholders of the company, therefore henceforth having more control over their own businesses.
The strategy worked, and for the first time, Ace topped $1 billion in wholesale sales in 1985; it went on to top $5 billion in 2015. Ace Hardware also expanded its international presence with a view to providing the requisites for building a solid enterprise to their retail partners. Ace Hardware stores exist in over 60 countries, and the numbers keep on increasing.
Ace Hardware touts itself as the helpful hardware folks and offers excellent customer service. It sells a wide variety of paints, lawn and garden goods, tools, local niche services, and just about anything else a person would need to fix, repair, and maintain a house. According to their website, “We are your local hardware store and we are a part of your community.” A further quote from the website says, “And the moment you walk in the door, you’ll know why we are Ace… the Helpful Place.”
Ace Hardware is an epitome of how a small group of entrepreneurs established a global empire through cooperation and innovation. The organization has retained its roots but adapted to changing times and markets, making history while advancing further in writing it.