It was beginning to look a lot like Christmas in San Antonio’s Henry B. Gonzalez Convention Center during Ace Hardware’s Spring 2025 Convention, March 4-6. The show floor and General Session stage were decked out in Christmas trees and holiday decor, a nod to the company’s emphasis on bolstering holiday season sales. During General Session presentations, company executives focused on growth, innovation, and supply chain enhancements.
Ace’s Continued Growth and Independent Strength
Ace Hardware President and CEO John Venhuizen pointed to record revenue of $9.5 billion and retail sales exceeding $23 billion in 2024. He highlighted the resilience of independent hardware stores, emphasizing the importance of differentiation in a competitive market.
“We face the biggest, best-funded competitors in retail, yet year after year, we continue to grow because of the strength of our independent store owners,” Venhuizen said. “At Ace, we combine global scale with local ownership, and that’s what keeps us strong.”
Venhuizen also lauded company’s Pinnacle performance program as a key driver of store-level success, citing data that shows Pinnacle retailers consistently outperform non-Pinnacle stores in same-store sales growth. He encouraged store owners to take advantage of digital transformation and product differentiation as essential strategies for long-term sustainability.
During his remarks, Venhuizen also highlighted Walgreens and CVS as cautionary tales of what happens when retailers fail to differentiate, offer exclusivity, or create an experiential shopping environment. He pointed to Walgreens’ decline in photo services—once a major revenue driver—due to smartphone disruption, as well as the erosion of their prescription business from online competitors like Amazon.
The key lesson for Ace retailers is that disruption is inevitable, and no business is immune, according to Venhuizen. Just as drugstores failed to adapt, hardware retailers must evolve by staying relevant, customer-focused, and proactive in responding to market changes. “Differentiate or die” remains the central takeaway—offering unique products, strong customer service, and engaging in-store experiences is what will keep Ace stores competitive, Venhuizen conveyed during his General Session remarks.
Retailers Explore New Products
While at the Ace Hardware Spring 2025 Convention, Alfredo Garduno of Webster Ace Hardware in Webster, S.D., spent his time exploring new products, connecting with vendors, and addressing any warranty or defective product concerns. For Garduno, the show is an opportunity to stay ahead of industry trends and find innovative products that could benefit his customers back home.
“Normally, when I come to the show, I look for new items, talk to vendors to see what’s new, or if I have an issue with something—warranty or defectives, that kind of thing,” Garduno said. “One item that caught my attention was a weed trimmer that attaches to the wheel of a push mower, so you can mow and trim at the same time.”
For Janet Colwell of Colwell Electric Hardware in Windsor, N.Y., the Ace Hardware Spring 2025 Convention allowed her to focus on discovering new products and innovations to bring back to her store. While exploring the latest trends in housewares and safety, she identified several must-have items, including a compact fire extinguisher designed for quick, easy use in kitchen emergencies.
“I was very excited about that,” Colwell said. “If you’re talking about a little kitchen fire, you need something just to grab, aim, and shoot instead of a big one where you’re going, ‘Oh, where’s the pin?’”
Colwell also attended the General Session and said she appreciated the transparency and insights from Ace’s leadership team. “I was very impressed that it wasn’t just the president of Ace talking to us about what we should be doing,” she said. “Hearing from leadership about what they’re doing well and what they can improve on was encouraging—because we all have things to improve on. Traffic has been an ongoing challenge for us, and it helps to understand why.”
Ace Examining Generative AI Use for Training
During the General Session, Venhuizen emphasized the company’s commitment to innovation and long-term sustainability, noting that Ace is currently testing generative AI with to help associates become more knowledgeable and confident in assisting customers.
Drawing parallels to Walgreens and CVS, he pointed out that some once-dominant product categories have experienced steep declines, reinforcing the need for retailers to adapt, focus on high-performing segments, and stay ahead of shifting consumer trends.
Marketing and Digital Growth Strategy
During the General Session, chief marketing officer Kim Lefko detailed Ace’s digital marketing advancements, particularly the impact of the Local Lift Max initiative, which drives local store visibility in online searches.
“Our digital investments are paying off,” Lefko said. “AceHardware.com sales were up 15 percent in 2024, and we’re continuing to refine our approach to meet consumer demand where they are—online and in-store.”
Lefko also announced enhancements to Ace’s delivery capabilities, including expanded partnerships with third-party providers to ensure that 80 percent of online orders can be fulfilled with local delivery by the end of March 2025. Additionally, she highlighted the importance of engaging customers through digital circulars, allowing stores to customize promotions and drive in-store traffic.
“Ace’s strength is in its ability to connect locally,” Lefko said. “We’re leveraging technology to enhance that, ensuring that when a customer searches for a product, they see their neighborhood Ace store as the best place to buy it.”
Merchandising Strategy and Category Expansion
Senior vice president of merchandising Brian Wiborg emphasized Ace’s focus on exclusive product offerings and category leadership. He pointed to significant growth in power equipment, grills, and holiday trim, underscoring the importance of seasonal merchandising.
“We are making major investments in Christmas trim and lighting because we know that success in Q4 starts early,” Wiborg said. “Stores can stock up on holiday inventory with no risk—whatever doesn’t sell this year can be credited toward next year’s inventory.”
Wiborg also highlighted Ace’s commitment to securing exclusive brands, noting recent additions such as Maui Jim, Oakley, and Costa sunglasses in the new Sun and Shade category.
“Our differentiation strategy is working,” he said. “Exclusive brands and unique assortments drive traffic, and we’re focused on making sure Ace retailers continue to lead in these key categories.”
Supply Chain Expansion and Reliability
Rick DiMaio, executive vice president and chief supply chain officer, outlined ongoing improvements to Ace’s supply chain network, including the opening of a new 1.5-million-square-foot distribution center in Kansas City, Missouri.
“This facility will be the largest in our network, improving delivery speed and reliability for thousands of Ace stores,” DiMaio said. “We are committed to delivering 100 percent of what you order, 100 percent on time, and 100 percent damage-free.”
DiMaio acknowledged the challenges of running a complex distribution system, with Ace processing over 1 million order lines daily. However, he pointed to a 95 percent on-time delivery rate as evidence of continuous improvement. Investments in automated storage and retrieval systems, as well as a focus on safety and employee retention, have contributed to increased efficiency.
“We’re not perfect, but we’re getting better every day,” DiMaio said. “Our supply chain investments ensure we keep up with your growth and provide the reliability you need.”
DiMaio also described how Ace Hardware has been investing in automated storage and retrieval systems, commonly known as shuttles, to enhance efficiency and safety across its distribution network. These systems have gained widespread adoption in the industry, particularly in response to post-COVID labor shortages and wage pressures in warehousing. Ace will soon have five shuttles in operation, including one in Kansas City. Depending on the facility size, these systems can perform the work of 50 to 100 employees, improving productivity while also reducing turnover and enhancing safety.
