Ace Hardware 2005 Annual Report Download - page 16

2005 ANNUAL REPORT NEW FRONTIERS. NEW OPPORTUNITIES. 15
Ace’s extensive product selection has
always been a cornerstone of our
retailers’ success. Time and time
again, retailers recount tales of
consumers coming to their stores
looking for a “thing-a-ma-bob” after
having been referred to their local Ace
by an associate at a nearby “big box”
who was unable to meet their needs.
Ace stocks more than 65,000 SKUs in the retail
support centers. It’s this depth of product that
makes Ace “the place” for consumers who are
looking for specific items for their DIY projects.
A key element of Ace’s product assortment
is the ever-expanding line-up of Ace label
products. With more than 10,000 SKUs carrying
the Ace name in all buying departments, Ace
labeled products are a visible component in
growing the overall Ace brand. By ensuring
that any product that bears the Ace name is
equal to or better than comparable national
brands, Ace labeled products continue to
provide a fantastic value for consumers.
Couple the expansive selection of Ace items
with products from the leading names in
the home improvement industry, and Ace
retailers’ product mix is second to none.
In particular, several core departments serve
as the foundation of Ace’s expansive product
selection. The paint department continues to be
a key category for the majority of Ace retailers,
with consumers turning to their local Ace
for paint and sundry products. Overall, this
department accounts for nearly 20 percent of
an average store’s sales.
Ace’s paint lineup continued to grow in 2005,
with the addition of a satin line to the popular
Ace Sensations®product offering. Sensations
is the only paint line with Scotchgard®
protection. The satin finish provides the same
washability and ease of stain removal as the
flat paint, providing consumers with two
fantastic options.
To further augment the selection of quality Ace
Paint products, in late 2005 Ace announced an
alliance to offer Benjamin Moore®products in
Ace stores. The coupling of these two highly
recognizable brands provides another way to
help retailers differentiate themselves from the
“big boxes.” The Benjamin Moore
rollout will be done on a market-
by-market basis, with qualified
retailers in four markets being
able to stock the Regal®line in
2006. A nationwide rollout at
qualified Ace stores is expected
by the end of 2008.
Ace’s consumer research shows
that providing consumers with a
brand choice in paint not only
helps to boost Ace Paint sales,
but also results in an increase
in sales for the entire paint
department. Now, by stocking one
of two premium paint options –
Benjamin Moore and Pratt &
Lambert – in Ace stores, retailers have the
ability to even more effectively meet the needs
of their customers.
Lawn, garden and outdoor living is another
core category for Ace retailers, accounting for
16 percent on average of a store’s sales. To
help retailers continue to capitalize on this key
department, the Merchandising team unveiled
a point-of-purchase décor package for the
barbeque business module. The in-store signage
is designed to inform and inspire consumers who
are interested in grills.
Lawn and garden chemicals also continue to be
a strong seller. In fact, this is the number one
merchandise class in average sales dollars for
all Ace retailers, generating over $40,000 in
sales per store and driving a sales increase of
24 percent over the past two years. To help
retailers remain competitive in this important
category, a Super Plus category management
assortment was unveiled in 2005, which
included five regional assortments specific
to the varying needs of consumers across
the country.
Product innovation
and new product
introductions make
Ace stores
convenient
destinations for
hardware and
home improvement
in their communities.