At 75, Ace is still the place

II IHAT BEGAN 75 years ago as a V V ploy to save money when buying sponges is now a Fortune 500 company with more than 5,100 stores in all 50 states and 62 countries, 17 distribution centers and two paint manufacturing plants.

Growth has been a constant for Ace Hardware Corp. The dealer-owned cooperative traces its roots to 1924 when hardware store owner Richard Hesse realized that buying from a jobber, or middleman, drove up the price on every hardware item, cutting into his profit. One day, a Greek peddler

In 1998, Ace signed

over 175 new stores in the U.S. selling sponges pointed out how much Hesse cguld save by purchasing sponges by the bale, rather than individually. Unable to buy that many sponges, he contacted fellow dealers to ask if they would be interested in splitting the bale. They were.

In 1998, retail sales reached $12 billion, while wholesale sales topped $3 billion. Average annual compound growth exceeded 87o over the past three years. Ace hopes to realize $5 billion in wholesale sales and $16 billion in retail sales by the end of the year 2000.

In 1998, Ace signed over 175 new stores in the U.S. As part of its growth strategy, the co-op launched a "New Retail Age of Ace" campaign using advanced technology, enhanced store design and new managerial and retail programs. Stores are being finetuned-department by departmentthrough a process called Discovery.

Discovery plans are tested at pilot Ace stores around the country, based on consumer and store owner responses. The process uncovers best practices on how products should be organized and displayed for added shopping ease and convenience, resulting in more "shopper-friendly" stores.

There are also plans for a revolutionary new store design that Ace refers to as "Store 21." Designed for optimal customer convenience and service as the hardware store of the future, a Store 2l prototype is tentatively set to open in 1999.

To celebrate its 75th anniversary, Ace will hold special sales and promotions at individual retailers throughout the year. As well, there will be a special ad campaign, an official anniversary celebration at the spring convention May 6-10 in Orlando, an award ceremony honoring the top l0 retailers with the longest affiliation with Ace Hardware, special contests and promotions at its Web site, and in-store video presentations on the company's history and growth.

According to ceo David Hodnik, "Ace's 75th anniversary will be an exciting opportunity for us to showcase our past accomplishments and define where we are headed as a company in the next century."

CAROLINAS-Tennessee Building Material Association gave booth awards to (1) Ron Brown, Hayes Armstrong, Paul Turner, Rod Mcleod; (2) unknown?, Raz Braatz, Nick Hopkins; (3) unknown?, Tom Lakeman. (4) Roland Pieva, and (5) Vince Crow. Other exhibitors: (6) Paul Mitchell, Bobby Mills. (7) Bill Bugbee, Jane Anderson. (8) Lee Buchanan, Karen & Jeff Beasley, Jerry Adamson. (9)Allen lrons, Chad Blizzard. (10) Richard Hall, Bob Peterson, Jesse Phifer. (11)Mike Crawford, Joy Rutland. (12) Rick Hustad, Olin Darnell. (13) Teny Reed, Russ Kachelmeier. (14)

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(16) Lany Mills, lflu, Danell Burdette. (19) Jennie Robertson. Doug Holt. (21) Keith Queen, Bil

(17) Lynn (18)

(19) Robertson. (20) Jan Kirschner, Guy Martineau, Bill Carson. (221Pan Hughes, Carole Rittei. (23) Dell White, Jennifer Dille. (24) Judy Light, John Trueworthy.

(25) Larry Thomas, Dan Eades. (26) Mark Black, Roger Slonaker. (27) Kds Stroud, Robin Broome, Joel Greene, Cookie Mullen. (See p. 19 for convention story and next page for more photos)

ASSOCIATI0N executive (1) Larry Adams (left) handed out cash awards to Garv Richard. Freddie Coleman, and (2) Susan Dickens, Kathy Peralta during CTBMA's annual convention and buying show Feb. 5-6 in Charlotte, N.C. (3) Todd & Karen Vance, Laurie Karastamatis. (4) Chester Abee, Jeff Kern, Tom White. (5) Brad Beckwith, Kris Jenkins. (6) Larry Blackmon, Tim Deaton, Ed Rutledge. (7) Dell Casey, Ray Wells. (8) Vera Richards, Mike Layne. (9) Clint Darnell. (10) Lee Aquilanti, Olivia Hopkins, Dean Morrison. (11) Larry Dudley, Bill Burch, Tony Jackson. (12) Jeff Tice. (13) Rob Spencer. (14) Art Groce, Larry Sink. (15) Josh Kirschner, Roger Hockett. (16) Larry Nichols, Houston Crumoler, Tom Krakauskas. (17) William Parker, Linda Britt, Brandon Potts, Joe Calloway. (18) Paul Johnson, Steve Alfaro.

(More photos on prevrous page. convention story on p. 1 9) ounds, Chesapeake Hardwoods. (f) Geary Sharber honored Carol Zeilinski, ABTco. (g) Larry Reidnour, Celotex. (h) DHP's Larry Malone. (i) DHP's Ronnie Calcutt. (j) Bob Monahan, J.M. Huber. (k) DHP's Jim Berry, Pete Kegel ol Supplier of the Year, Mt. Baker Plywood. (l) Chesapeake's Kenny Dunn, DHP's Dan Russo.

DIAMOND Hill Plywood, Darlington, S.C., held its annual Supplier Awards banquet in conjunction with the CTBMA show. (a) J.M. Hube/s Brian Carlson was presented the President's Award by exec. v.p. Jim Ramsey. {b) DHP's Mike Davis presented to James Hardie's Ray Mohler; (c) Larry Mills to Tim Swaim, States lndustries. (d) DHP's Jim Ponzurick.

Don F

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