Ace Pushes Standardized Operations

In an attempt to b()ost its market share and stem competition, Ace Hardware Corp. plans to overhaul its strategic practices.

Dubbed "Vision 21." the program entails participating Ace stores standardizing operating and merchandising procedures based on practices at the chain's most profitable units.

"The foundation of this program is to fbster and ensure that certain characleristic: of Ace st()res are consistenl so that all of our customers eniov the optimum retail experience no matter what Ace store they visit," said David Hodnik, president and ceo. "In addition. having similar processes and technologies among all Ace retailers means that our owners can focus on the customer rather than developing administrative practices."

The Oak Brook, Il.-based buying group estimated its market share of the home-improvement industry to be roughly 87o, almost identical as in r 989.

Conversely, in that same period, Home Depot and Lowe's Cos. have increased their market share to 30%.

"If we wait too much longer, we'll be facing retirement as a business model." Hodnik observed.

Knoll Files For Chapter 11

Less than 60 days after selling its Kenmore, Wa., store and moving to Monroe, Wa. (.see April, p. l8), Knoll Lumber & Hardware Co.. Inc. has filed for Chapter I I bankruptcy protection.

The 55-year-old firm, which reportedly is facing lawsuits by the state Department of Revenue and its main supplier, Builder Marts of America, Greenville, S.C., listed assets of between $500,000 and $l million and liabilities of between $l million and $ l0 million.

The one-time five location chain has seen sales dwindle from a high of $36 million at four stores in 1997, to $9 million in sales at a single location last year.

While the sales decline coincided with the arrival of Home Depot and Eagle Hardware & Garden units into the Seattle area. Knoll remained successful into the mid-1990s. thanks in part to switching its tbcus to prof'essional contractor sales from d-i-yers who had defected to its bigger rivals.

In 1995, the same year Knoll acquired two-unit Pioneer Lumber and changed its marketing focus, the firm's five units did $33 million in sales.

The following year, after selling one store. sales reached $35 million. Sales reached $36 million in 1997, before plummeting to $15 million in 1998, necessitating the closure of two locations.

Among Knoll's e reditors are owners Craig and Victoria Knoll, who reportedly have put $43,000 of thcir own money into the business.