At 75, Ace is still the place

II/HAT BEGAN 75 years ago as a V Y 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, l7 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 ajobber, 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 slores in the U.S, selling sponges pointed out how much Hesse could 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 8Vo 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 10 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."