BUILDING SUCCESS THROUGH INNOVATION AND SERVICE
BUSINESS
ACE HARDWARE INTERNATIONAL
HARDWARE INTERNATIONAL
ACE HARDWARE INTERNATIONAL: BUILDING SUCCESS THROUGH INNOVATION AND SERVICE
Project by: Malvern Kandemwa
Words by: Michelle Duncan
Ace Hardware, the world’s largest retailer-owned hardware cooperative, marked the opening of its 105th new store in 2022. To support this rapid growth, Ace continues to expand its distribution network, bringing more inventory closer to its growing number of stores and customers. Over the next five years, the company plans to add 4.4 million square feet of distribution capacity through three new warehouses—building on the
more than 2.5 million square feet added over the past four years. Ace runs more than 5,600 locally owned hardware stores in all 50 states and 70 countries, with global sales topping $20 billion. Ace’s unique cooperative business model offers local entrepreneurs not only the ability to become owners of their local store operation, but also one of a limited number of shareholders of Ace Hardware Corporation.
In the world of procurement and sourcing across Asia, the name Gavin Thomson carries significant weight. As Global Sourcing Director at Ace Hardware International, he has earned a for-
midable reputation for driving transformation, streamlining processes, and fostering longterm supplier partnerships.
Thomson’s experience with prominent publicly listed companies such as Li & Fung provided him with a deep understanding of global sourcing markets. It also connected him with a network of respected leaders across diverse industries. “From the highest levels to the most junior employees, everyone respects a leader who is open and transparent,” he says. “People come to work every day and give their best. If they feel information is being hidden or presented in a way that isn’t entirely truthful, it under-
mines both the integrity and motivation of the organization.
“That’s why I always strive to be upfront with my team about what’s really happening—it builds trust and loyalty.”
With over 20 years of experience, Thomson has seen business turnarounds, bankruptcies, industrial action, and even riots, giving him a wealth of knowledge to draw upon.
His time at large organizations taught him the critical importance of keeping departments aligned.
“In every sizable business I’ve worked in, you end up with competing agendas and silos,” he explains. “The leaders I truly admire can create a common goal across functions so that everyone says, ‘That’s a goal we all want to achieve.’”
Since joining Ace Hardware just over three years ago, Thomson has faced no shortage of challenges. The COVID-19 pandemic, for example, delayed his move from Hong Kong to his Shanghai base by six months.
“Getting to know both the team and the product range was a real challenge,” Thomson recalls. “Like many businesses at the time, we weren’t ready for remote work. No Teams, no Slack, no Zoom—nothing was digitized.
“At first, building relationships with people I’d never met in person, and learning a completely different product category and market, was tough.”
But the disruption brought unexpected benefits. Thomson says it accelerated the growth of Ace Hardware’s sourcing officers.
“The top performers stepped up, reaching a level of competence that earned the trust of our overseas buyers. By empowering these teams, they became the drivers of business and product development,” he says.
“Without visitors or monthly in-person support, our people had to develop their own skills— finding products and understanding exactly what buyers wanted. It was a real test, and they rose to it.”
IN EVERY SIZABLE BUSINESS I’VE WORKED IN, YOU END UP WITH COMPETING AGENDAS AND SILOS. THE LEADERS I TRULY ADMIRE CAN CREATE A COMMON GOAL ACROSS FUNCTIONS SO THAT EVERYONE SAYS “THAT’S A GOAL WE ALL WANT TO ACHIEVE!”
With strong sourcing teams in place, Thomson can now focus on Ace Hardware’s global sourcing strategy for the next three to six years.
“We’re concentrating on developing key partnerships in countries we see as strategically important, not just because of tariffs,” he explains.
“Geographic expansion is a major focus, and we need to ensure we have the resources in each market. That means confirming that if we source from these countries, the infrastructure is in place to meet our product standards, factories stay compliant, and our teams are equipped to address any issues that arise.”
According to Thomson, the biggest headaches in global sourcing often come from dishonesty. “In over 20 years working in China, I’ve dealt with vendors who just weren’t truthful,” he recalls.
“They’d hide problems in their factories or do not show shutdowns, creating a ripple effect that damages long-term relationships and forces us to scramble for alternatives.
“But then there are suppliers who are upfront about challenges—whether it’s issues with their own suppliers or government regulations. Our response is always, ‘Thank you for your honesty; now let’s solve this together.’
“Business relationships, like personal ones, thrive on cooperation. Openness builds trust; a lack of it can quickly destroy it.”
