Ace Hardware 2005 Annual Report Download - page 20

2005 ANNUAL REPORT NEW FRONTIERS. NEW OPPORTUNITIES. 19
The entrepreneurship of Ace members
knows no limits – and isn’t bounded by
geographic lines. Ace’s international
retailers bring Ace’s “helpful” message
to every corner of the world as they
expand the Ace brand into markets
across the globe. Consumers in more
than 70 countries are familiar with the
Ace name; from the Middle East to the
United Kingdom and from Indonesia to
Mexico, customers are able to find the
high-quality products they need with
the help of Ace associates offering truly
“world-class” customer service.
By leveraging the power of Ace’s brand,
combined with the effectiveness of the
company’s global distribution network, Ace’s
international retailers demonstrated their
capacity for success through increased profits.
In 2005, international retailers enjoyed another
record year. Their wholesale purchases increased
nearly 12 percent over 2004, as did bottom
line profits.
And growth among this group isn’t limited to
profits – Ace continues to expand its network
of international retailers year after year. With
new stores opening around the world in 2005,
Ace’s international business now includes
more than 140 accounts on six continents,
which is helping to solidify Ace as one of the
most recognized brands in the world.
This growth was spurred, in part, by the
agreements signed with several established
international retail chains in 2005. In June,
the 200 member stores which comprise Mica
South Africa-Super Group began receiving
hardware and home improvement products
through Ace’s distribution network. In addition
to tapping new customers in the South African
market, Ace is also able to utilize its partnership
with this group to discover new and improved
ways to procure, warehouse and distribute
products, further strengthening both companies.
But the attraction of the Ace brand doesn’t
just appeal to new members – seasoned,
international retailers also appreciate the tried-
and-true selling power of Ace, demonstrated
by the renewal of the company’s longstanding
relationship with established international
chains. In 2005, Ace signed a 10-year extension
to its business agreement with Ace Israel and
will continue supplying the 25 hardware stores
in the retailer’s chain with Ace products. Ace
Israel has been able to leverage the
Ace brand to become the top-of-
mind destination for its customers.
In Israel, Ace continues to earn
the highest scores on awareness
surveys conducted in this country,
often topping 55 percent.
Brand power certainly motivates
international retailers to join the
Ace family, but the quality of our
products also holds high appeal
throughout the world. In England,
for example, Ace Paint caught
the attention of Lawsons, an 85-
year-old lumber and building
materials chain. In 2005, an
agreement was signed to convert
Lawsons’ paint departments to
Ace’s Color Your Life®merchandising format,
representing the first time that Ace Paint will
be available to customers in England.
Ace also continues to research and implement
methods which improve our international
retailers’ ability to bring new products to
market. In Mexico, where many product
manufacturers reside, Ace has developed a
program to enhance retailers’ ability to buy
local product, with billing and payment
conducted in the local currency. This allows
Mexican retailers to source their product and
local name brands via Ace Hardware.
Ace international
retailers made the
transition to be
full members of
the cooperative,
contributing to
a solid 12 percent
sales increase
for the year.