CO-OP REPORT
At Ace, unusual times lead to big numbers By Ken Clark These are not your normal retail and distribution conditions. And for Ace Hardware Corp., the most recent three months produced some unusual numbers. For instance:
A 221% increase in revenue at Acehardware.com;
A 28.9% increase in U.S. retail same-store sales, at the 3,300 or so Ace dealers who share data with corporate on daily retail sales;
A record high revenue figure of $2.0 billion — up 30.7% from the same quarter of 2020.
In its most recent earnings release, the company tipped its hat to the unusual environment that has given birth to these numbers across much of home improvement industry – and specifically for Ace dealers. The heightened importance of both convenience and safety, coupled with the shift in consumer discretionary spending from sectors such as travel and entertainment into home preservation, have distorted demand and driven much of the growth within Ace stores in the U.S.” the co-op said. CEO John Venhuizen described the retail environment as “very difficult and demanding for both our customers and our associates.”
40
the end of the third quarter, picking up a combined 11 stores compared to the same time a year ago. The Lenexa, Kan.-based Westlake Ace Hardware chain (see sidebar) experienced a 28.3% increase in same-store-sales while the Farmington Hills, Mich.-based Great Lakes Ace Hardware, Inc. chain grew same-store-sales by 40.5 percent in the quarter. For Westlake, eleven new California stores (formerly operated as Orchard Supply Hardware Stores) opened by Westlake in 2019 contributed $19.7 million of the increase in sales. Ace added 43 new Source: Ace Hardware Corp. domestic stores in the Ace Hardware Corp. also third quarter of 2020 and cancelled 22 provided insights into the stores. The Company’s total domestic performance of its two major retail store count was 4,585 at the end of holdings — Westlake Ace Hardware the third quarter of 2020 which was and Great Lakes Ace. Combined, an increase of 57 stores from the third the retailers operated 194 stores at quarter of 2019. On a worldwide basis, Ace added 46 stores in the “A 221 percent increase in our third quarter of 2020 and digital business and same-store cancelled 29, bringing the worldwide store count to sales growth of 28.9% fueled 5,403 at the end of the third record revenue and earnings quarter of 2020. in an environment that The bottom line also continues to be very difficult produced big numbers for the Oak Brook, Ill.and demanding for both our customers and our associates.” based co-op. Net income of $98.7 million was up — John Venhuizen, president and CEO 63.1% and marked a new record for Ace. The co-op also announced accrued patronage dividend to shareholders of $263.8 million, an increase of 66.9% from the first nine months of 2019. “I want to genuinely thank the Ace team for their gutsy performance,” said Venhuizen.
NOVEMBER/DECEMBER 2020 HARDWARE + BUILDING SUPPLY DEALER
HBSDealer.com
