Costello’s Ace Hosts Vendor Summit

This week, more than 50 vendor representatives came together at the Costello’s Ace Vendor Summit to explore 2025 product lines and learn more about the Northeast-based retailer, who operates 49 locations across New York, Maryland, New Jersey, Pennsylvania, and Virginia. Celebrating 51 years in business, Costello’s Ace hosts the summit to strengthen its vendor relationships and find ways to better work together, according to Joey Costello, the company’s director of strategic partnerships.

With the theme of “Better Together” Costello’s Ace CEO Michael Costello kicked off the summit with an address that highlighted the company’s history and vision for the future.

“Our theme today really is about teamwork and collaboration,” Michael said. “I feel it’s important to have great teamwork between a growing chain of Ace hardware stores and the vendors that support us.”

Michael shared how his family began the family business in 1976 after purchasing a store that opened in 1973 in Deer Park, N.Y. The CEO explained that his parents, Vincent and Margaret, were better together and set an example for their 10 children, six of whom currently work in the family business.

“They wanted to build a business that was centered around their values and really supported their community given the chance to serve others,” Michael said during the opening session at Long Island Marriott in Uniondale, N.Y. “That was their mission. But just as important as their mission was really their values of how they were going to get that done.”

After Michael’s opening remarks, Costello’s Ace presented its annual Vendor of the Year Award to Stanley Black & Decker.

Costello’s Year in Review, Looking to Future

After Michael Costello’s presentation, Ken Goodgame, senior vice president of marketing and merchandising, gave a presentation about the company’s positioning and expansion plans.

“It’s been a tough year if everybody’s looked at the performance of their businesses this year. It was a pretty tough spring,” Goodgame said.

He also mentioned that bigger-ticket items, such as patio items, grills and sheds, weren’t selling as well as last year.

Goodgame cited Costello’s Ace sales as being up 2.8 percent and comp-store sales up 1.4 percent while transactions were down 2.5 percent—all measures better than big-box competitors.

Goodgame outlined how the company will grow from its 2024 sales of $180 million to $375 million in 2030.

New Initiatives for Northeast Retailer

Goodgame also described how Costello’s Ace initiated a review of the company’s top 500 SKUs. Likening this review to an Amazon bestseller list, he said that reviewing these SKUs provides insights into the company’s business. For example, the top 500 SKUs represent more than 7.5 percent of the company’s total sales and for the year are up 11 percent.

 “A side benefit, this knowledge trains our new associates when they’re looking at the planogram,” Goodgame said. “They know what the best sellers are as well as our customers.”

Goodgame also shared that the company’s in-stock rates are at 93.8 percent, near best in class. Goodgame also explained how Costello’s Ace has developed multiple revenue streams, including the DIY business, business-to-business, dot com sales, handyman services and hearth and home spa service.

Costello’s Ace Plans for 2025

Costello’s Ace continues to prioritize customer service and operational efficiency, with growth on the horizon. The retailer expects to add five to six new stores next year, bringing its total to nearly 60 locations, according to Goodgame.

During the next six years, Costello’s Ace predicts that its online business growth will greatly outpace its DIY business which is currently nearly 80 percent of the company’s total top line revenue. Goodgame was also bullish on the company’s business-to-business and hearth and spa revenue streams, stating that they will have a more significant impact on total top line revenue in 2030.

“Everybody in here has the potential to sell your products in a business-to-business environment,” he said.

Goodgame summarized Costello’s Ace recent growth, including the additions of these locations in 2024: Bernardsville, N.J., Crofton, Md.; and Warren, N.J. Stores in Belimore, N.Y., and Farmingdale, N.Y., were relocated or remodeled. The company also acquired Tri County Hearth Patio Center in Waldorf, Md., and All Pro Chimney and Home.

Goodgame announced the opening of another Costello’s Ace location in Cedar Knolls, N.J., in early 2025.

“We’re leaning in big to larger-volume stores, because we know that having that additional top line helps us fund other projects that we’ve got going in the company and it’s all centered around growth,” Goodgame said. “I can promise everybody in this room when we are sitting here a year from now, you’ll see another five or six stores on top of the two new stores we have on tap for next year.”

Goodgame outlined Costello’s planogram initiative to speed unpacking from truck to shelf. This planogram innovation, which includes coding based on where products go on shelves, could save about 20 percent of the time it would typically take to unpack.

 “This is all designed to put more hours on the floor, and we know that operational efficiencies and putting hours in front of customers is a great way to drive sales,” Goodgame said.

Vendor Representatives Introduced New Lines

Vendors represented at Costello’s Ace Vendor Summit included brands such as Benjamin Moore, Bullfrog Spas, EGO, DAP, DeWalt, Hearth and Home Technologies, Jonathan Green, Milwaukee Tools, Traeger, Scott’s Miracle Gro, Shurtape, and Weber.

During breakout sessions over two days, vendors met with Costello’s staff to discuss plans for 2025, sharing insights about each other’s businesses and coordinating co-op marketing efforts. Costello’s Ace and vendors also reviewed the previous year’s sales along with sharing sales forecasts for 2025.