Ace Hardware is gearing up to revolutionize the retail experience with its new experiential store model, Elevate Ace. CEO John Venhuizen announced that the company plans to invest over $1 billion to implement this concept in both new and existing stores over the next five years. The key changes include the addition of store-in-store brand showrooms, new product assortments, flagship store models with outdoor spaces featuring live goods displays, and enhanced customer service.
The Elevate Ace concept was introduced with a fully built-out 13,000-square-foot model store at the McCormick Place convention center during a recent convention in Chicago. While a few stores will feature the new concept in Q4, the full rollout is set to begin in January. This new approach to retail is a fundamental change in Ace Hardware’s store model, aiming to create a space where customers can not only shop but also connect with the brand.
Experiential retail is a top priority for Ace Hardware, with the goal of creating an in-store shopping experience that cannot be replicated online. The company began this revamp two years ago with a focus on highlighting core categories like paint, power tools, backyard grilling, and home preservation. Additionally, the emphasis was placed on fostering a sense of community within the stores.
As Ace Hardware celebrates its 100th anniversary this year and the opening of its 5,000th location in the U.S., the introduction of the Elevate Ace concept marks a significant milestone for the company. With over 5,800 locations globally, Ace Hardware is looking to stay ahead of the curve in a rapidly evolving retail landscape.
To enhance the customer service experience, Ace Hardware has trained frontline associates to serve as brand advocates, helping customers navigate purchasing decisions based on brand preferences or product features. The company has also optimized its product assortment, with a focus on key growth categories like grilling and power tools.
Unlike big-box home improvement stores, Ace Hardware operates on a cooperative business model and caters to a slightly different retail segment. Most Ace Hardware stores do not offer building materials or large appliances, which has proven to be a strategic advantage during economically challenging times. While competitors like Lowe’s and Home Depot have seen sales decline, Ace Hardware reported growth in revenues in its most recent quarter.
The differentiation between home preservation and home renovation is a key factor that sets Ace Hardware apart from its competitors. By focusing on customer needs and providing a unique shopping experience, Ace Hardware continues to thrive in a competitive market. The Elevate Ace concept is set to redefine the retail landscape for the company and create a lasting impact on the industry as a whole.