Ace retailers won their sixth consecutive
J.D. Power & Associates award for outstanding
customer service in the home improvement
industry. Ace remains the only home improvement
company to have ever won this prestigious
award—proving once again that our brand
has never been stronger.
WE ARE
ACE
By almost every benchmark, 2012 was an
excellent year for Ace. We’re proud of what we
accomplished this year, and we want to share
some of the more significant achievements
with you.
Despite an economic and political climate that
continued to challenge many businesses, Ace
Hardware Corporation exceeded our financial
goals for 2012. At $3,840 billion, Ace continues
to enjoy the No. 1 position in the industry.
Thousands of Ace stores implemented Level 3
resets across four major categories, including
Craftsman products and Clark+Kensington paint,
driving comparable same-store sales for the year
up from our goal of 3 percent to a very healthy
3.6 percent.
The Ace International division ended the year
with a 5 percent revenue increase, with sales
of $235 million and profits of $2.1 million.
In terms of bottom-line profit, we exceeded
our stated goal of $75 million, ending with
$81.8 million for the year. At the same time, we
completed a planned refinancing of the business
that included upfront costs as well as short and
long-term benefits. Our planned refinancing
initiative will result in a savings of approximately
$60 million over a five-year period.
Worldwide, we opened 222 new Ace-branded
stores in 2012, for a net store gain, both
domestically and internationally.
Our 14 Retail Support Centers achieved record
labor productivity, capturing more than $138
million in supply chain benefits, far surpassing
our goal of $106 million. We also took more than
$34 million out of inventory, improving turns to 4.4,
while achieving a record 96.9 percent service level.
We reformulated and launched a new
Clark+Kensington paint brand designed to
position Ace as the premier neighborhood
destination for paint, and this will help fuel our
long-term strategic goal to grow Ace’s liquid
paint market share to 10 percent in 10 years. We
successfully embarked upon a strategic alliance
with Valspar Corporation, a world-class coatings
company, which will further enhance our paint
offering and position among consumers.
Additionally, we completed a strategic acquisition
of the 85-store Westlake Ace Hardware chain,
keeping our largest customer in the Ace family.
We have never been more proud of our company
and its leadership position. We have more than
4,400 great Ace stores across the world, run by
the most helpful hardware folks on the planet.
As we complete our CEO leadership succession
plan and launch 2020 Vision, our new longterm retail growth strategy, we are excited and
confident about 2013 and beyond. We truly
believe we are in for a “good decade.”
We want to personally thank each of our retailers
for their dedication and continued support.
“Together We Are Ace!”
Sincerely,
Ray A. Griffith David Ziegler
Chief Executive Officer
Chairman of the Board
T OGET HER WE A RE A C E
ERA OF
GROWTH
2012 ushered
in a new era of
growth for Ace.
We opened over
200 new stores
worldwide, and
service levels are
at an all-time high.
Some of the year’s
highlights include:
Total Revenue
Ace is the undisputed leading hardware
cooperative in the industry, with $10 billion
in retail sales in 2012.
Ace’s International business ended the year with
a 5 percent revenue increase, with total revenues
of $235 million and profits of $2.1 million.
The acquisition
of THE
85-STORE
WESTLAKE
CHAIN
LEVEL 3
,
6 279
STORE RESETS
2,199
LIGHT BULB
SETS
2,000
CRAFTSMAN
STORES
1,750
POWER TOOL
ACCESSORY
SETS
3,000
Ace’s social media presence continued to expand
in 2012. Our Facebook followers increased by
87 percent, while our followers on Twitter are up
127 percent. In addition, Ace’s YouTube views
increased by an amazing 590 percent.
Ace Hardware once again ranked highest by
J.D. Power & Associates in customer satisfaction
in the home improvement industry. Ace has
taken the top spot ever since J.D. Power began
researching the home improvement category
six years ago.
Be proud of your accomplishments, Ace retailers!
We are proving that we can grow big by acting
small—together we are Ace!
STORES FEATURING
---------------- THE --------------CLARK+KENSINGTON
PAINT LINE
T OGET HER WE A RE A C E
BEST IN
CLASS
MJK Ace Sales & Feed had already won
multiple awards when Lorraine and Lonnie
Kawcak decided to expand and relocate
their Craig, Colorado store.
Lorraine and Lonnie Kawcak envisioned making
their already successful Ace store bigger and
better. By relocating their Craig, Colorado
Ace store, they could meet a felt need in their
community by adding a lumberyard to their
offerings. Project manager Gary Johnson and
district manager Keith Mutz worked with the
Kawcaks to determine how a lumberyard would
add to their mix and profitability. Convinced that
the Kawcaks had the right idea, Gary and Keith
decided to pursue the concept.
their expansion! More awards are surely in order
in their new location, as Lorraine and Lonnie are
true examples of retailers who respond to their
customers’ needs and live Ace’s vision of being
the best, most helpful hardware store owners
on the planet.
The project stalled due to the downturn of the
economy, but in early 2012 the Kawcaks were able
to purchase their new building and the expansion
began moving forward again. Lorraine and Lonnie
first intended to reset, move, and merchandise
their 25,000-square-foot store using their current
staff, but Gary and Keith helped them see the
benefits of using an outside service. In spite of the
additional costs involved, the Kawcaks agreed.
The Kawcaks’ store joined Ace Hardware in
1985. Their store has been voted Best Customer
Service, Best Home & Garden Supplier, Best Paint
Store, and Best Hardware store—all this before
TO G ETH ER W E ARE AC E
THE NEW
ACE MODEL
The model retail store at Ace’s Woodridge,
Illinois, facility reflects years of retail
investment that assist Ace retailer
stores to out-perform all the rest.
Each Ace store is unique, and this uniqueness
is an essential ingredient to achieving profitability
and customer satisfaction. To help us fully
understand retail in-store signage and decor,
we’ve set up a model store environment in
Woodridge, Illinois, which incorporates over
twelve years of retail point-of-sale data and
provides ongoing category line reviews in
an optimized store layout with all new store
environment signage. The core format, housed
within an 8,000 square foot space, is 16 percent
smaller than the previous recommended footprint
but 18 percent more productive.
“The Model Retail Store incorporates proven
elements where merchandising, category
management, and retail development teams
all work together to help promote service and
maximize a customer’s shopping experience,”
said Mike Berschauer, director of retail operations.
“Ultimately this drives performance and profits.”
An integral part of the Model Retail Store is
strategic placement of departments and product
categories. “We have optimized store layouts that
place top-selling departments and categories
closest to the customer. In addition, the reduction
in duplicate SKUs and redundant inventory allows
for regional and local product selections and
niches that can add up to $30,000 in annual
gross profit for a store,” Mike says.
To support Ace retailers with their unique
store sizes and layouts, Ace offers more than
TO G ETH ER W E ARE AC E
180 regional planograms featuring vital product
placement guidelines. For instance, out of 200
product categories, the top 44 categories account
for more than 50 percent of a store’s gross profits.
When placed in the right location, a high-traffic
category—such as trash bags—can generate
$20,000 or more in annual sales. Lightbulbs,
household cleaners, lawn and garden chemicals,
and power tool accessories can also be
strategically placed to capitalize on the customer’s
core shopping habits. Instead of being buried
within the paint or housewares department, Ace’s
strategy is to place them near the power aisle.
A new YourPlace retail design workbook provides
another valuable resource for store owners.
Keeping with Ace’s slogan, “The Helpful
Place,” the new Helpful Hub is designed to help
associates with special orders and is located near
departments that typically require assistance,
such as electrical, plumbing, and fasteners—
all high-margin categories.
According to Berschauer, the SKUs recommended
for Ace’s supported formats (convenience, core,
express) are also key. “The product offerings and
store layouts are based on piloted and proven
principles that drive performance, productivity,
localization, and service in an efficient store
environment,” Berschauer said. “We are
reinforcing Ace as the best, most innovative
hardware resource in the world.”
In 2012, the Ferrmax
Group in Puerto
Rico became part
of Ace International,
resulting in an
overwhelming
sense of pride and
loyalty to Ace.
Ace International had a hole to fill: They wanted
to develop a stronger presence in Puerto Rico.
In 2012, they did just that—in a big way. The
Ferrmax Group, consisting of 10 retail owners
(with 14 stores among them), made the decision
to leave True Value and join Ace at the beginning
of the year. In return Ace International granted
Ferrmax the exclusive rights to Ace Hardware
in Puerto Rico.
Ace immediately put together a corporate
transition team that traveled to Puerto Rico
to assist with the conversion to Ace, a process
that is still ongoing. Ace representatives visited
each of the 14 stores to make sure owners and
employees understood the changes taking
place and felt good about being a part of the
Ace family. Jorge Perez, one of the owners
and the man who started the Ferrmax Group
13 years ago, said that the support shown by
this transition team has been nothing short of
incredible, and the level of commitment from
Ace International continues to exceed all
expectations. From IT to marketing, Ace made
sure that the conversion process, which was
overwhelming at times, moved efficiently and
effectively. “The pace was more aggressive than
this team was used to—Ace moves at lightning
speed!” Jorge said. There was a vital sense of
being challenged to move in a positive direction
in order to generate welcome changes.
Customers have responded well to the transition
from True Value to Ace. They recognize the
exceptional level of service and the high quality,
reasonably priced products. Even in Puerto
Rico’s tough economy, the stores in this group
are thriving, and there are plans to open more
Ace stores in the future. Backed by such a deep
commitment at the corporate level, the Ferrmax
Group is determined to make Ace the best
hardware retailer in Puerto Rico.
TO G ETH ER W E ARE AC E
AROUND
THE
WORLD
GROWING
UP ACE
What better way to increase your customer
base than by reaching future Ace shoppers?
Sharon Alire found a creative way to do
just that with her Plant a Garden for
Mom event held this past spring.
Sharon Alire, the manager of Pioneer Ace
Hardware in Albuquerque, New Mexico, is always
on the lookout for new ideas to simultaneously
drive sales and help her community at the same
time. In 2012, she partnered with the manager of
Mama’s Minerals, a neighboring store, to plan a
joint event for Easter. Mama’s Minerals planned an
Easter egg hunt and a how-to class, and Sharon
decided to host a workshop for kids on how to
plant and care for a garden. She called it “Plant a
Garden for Mom.” The two stores worked together
to create colorful flyers to advertise the event,
which they handed out to customers and posted
around town. Sharon worked with her vendors,
who generously donated 300 vegetable plants
along with bags of soil, and other goodies for
the young participants.
All in all, about 250 kids—future Ace Hardware
shoppers—and parents attended the event,
and Sharon exceeded her financial goal by
50 percent. Because many of the parents were
not current Ace customers, Plant a Garden
for Mom also increased Pioneer Ace’s footprint
in the Albuquerque community.
T OGET HER WE A RE A C E
With a goal to become the finest
small-town hardware store possible,
Jim and Amy Hood’s Mahomet, Illinois,
Ace Hardware got a new look, expanded
floor space, and updated inventory.
BIGGER
BETTER
Jim and Amy Hood purchased Mahomet Ace
Hardware in Mahomet, Illinois, from longtime
owners Millie and Ernie Rosenberg in 2004.
“The Rosenberg’s always struggled with not having
enough space, and we did too.” Jim Hood said.
In 2012, when Napa Auto Parts vacated the space
next door to the Hood’s store to move to a larger
location, Jim and Amy decided that it was a
perfect opportunity for them to expand as well.
They removed the concrete wall between the two
stores, and as a result, Mahomet Ace Hardware
grew from 8,800 square feet to 11,200 square feet.
Jim and Amy also own an Ace Hardware store in
Gibson City, Illinois, which was started by Jim’s
parents, Ron and Mary Ann Hood, in 1956. Ron
Hood, now 82, still works in the business and
helped reset the Mahomet store.
The new space allowed the store to stock several
thousand new items and also provided room to
showcase larger items like patio sets, grills, and
seasonal decorations. An overhead door was
installed to make deliveries easier. The Hoods
implemented Discovery Edge resets in light
bulbs, power-tool accessories, mops and brooms,
cleaning supplies, weather stripping, and electrical
wiring devices. The remodeling will continue in
2013, with a Paint Valley reset and a Lawn and
Garden reset planned for spring.
The community response has been tremendous.
“Our customers love the new layout and spend
more time in the store. People recognize our
Ace shirts out in the community and often make
positive comments about the changes to our
store,” Amy says. “It’s the same town, with the
same population, but so far our sales are up 15
percent and our gross profit is up over 20 percent.”
T OGET HER WE A RE A C E
OUTSIDE
THE BOX
Ceva and Douglas Courtemanche
bring new initiatives into an Ace legacy.
1960
THE HENSEL
FAMILY
1985
THE HESS
FAMILY
1990
STORE IS
REBUILT
Hensel’s Ace Hardware has been a strong
presence in the Arcata, California community
since the early 1960s when it joined the Ace
Hardware family. Through the years, ownership
has changed, but the commitment to meeting
the needs of the local community has not.
Hensel’s has a legacy of owners that strive to be
innovative as well as helpful. The second owners,
Pete and Shirley Hess, rebuilt and reset the store
before handing it over to the next generation.
The new owners, Jerry and Ceva King, carried
on the Hensel’s Ace Hardware tradition of
excellent service. Continuing to provide for future
ownership, in January 2010 Jerry and Ceva King
brought their daughter Ceva and her husband,
Douglas Courtemanche, into the business.
2002
THE KING
FAMILY
2010
THE COURTEMANCHE
FAMILY
members of the community can find something
to enjoy and enhance their daily lives.
With the Courtemanches at the helm, three years
ago Hensel’s Ace Hardware purchased the Seely
Titlow building, where Ceva opened a kitchen
store, a furniture store, an old-fashioned candy
store, and a barbecue section. Dad Jerry put in
an appliance store, which allowed the main store
to expand its camping section. These five “stores”
are all part of Hensel’s Ace Hardware, but they
are located in a new building that shares the
same parking lot as the main store.
Hensel’s Ace Hardware filled a niche in the Arcata,
California community by expanding and growing—
and by being a model of how multiple generations
can work together to build the future.
Today, Ceva Courtemanche continues to grow
the business as vice president of operations.
Her vision goes beyond the basics of a hardware
store—she wants Hensel’s to be a place where all
T OGET HER WE A RE A C E
GIVING
BACK
2012 was an amazing year for the
Ace Foundation, which serves as the
charitable umbrella for Ace Hardware
in the continental United States.
Ace retailers, retail support centers
and the Ace Foundation conducted a
wide variety of successful fundraisers
throughout the year. These initiatives
generated much needed funds for
children being treated in local community
Children’s Miracle Network Hospitals.
We are proud to report that the
Ace Foundation raised $4.0 million for
Children’s Miracle Network Hospitals.
2012 CHAMPIONS SPONSORED BY ACE
One dollar, one donation at a time—Ace is helping
to make miracles happen.
A highlight of 2012 was The Ace Foundation’s
sponsorship of the Children’s Miracle Network
Hospitals “Champions” program. One child from
each of the 50 states and Washington D.C.—all
of whom were treated at a CMN Hospital—was
chosen to serve as his or her state’s champion.
In September, all the champions and their families
traveled to Washington D.C. and Walt Disney
World to share their stories and celebrate their
triumphs. The strength and courage these children
and their families display truly make them an
inspiration to everyone around them.
In addition to sponsoring the “Champions”
program, the Ace Foundation held a national instore fundraising campaign in October to benefit
Children’s Miracle Network Hospitals. Nearly
TO G ETH ER W E ARE AC E
900 Ace stores participated, and the total amount
raised for 2012 was $447,000—an 18 percent
increase over 2011.
Ace Hardware Named
“Corporate Champions for Children’s”
by the Ann & Robert H. Lurie
Children’s Hospital of Chicago
KAYLEE HARRIS:
JUNIOR RETAILER MAKES BIG MIRACLES
Twelve-year-old Kaylee Harris is already making
sure kids in her community get the specialized
healthcare they need. The daughter of Dan and
Pattie Harris, owners of Palos Ace Hardware in
Palos Heights, Illinois, Kaylee is a sixth grader
who loves to make crafts in her free time. She got
the idea of making Duck Tape flower pens when
she saw all the new colors of Duck Tape available.
Soon family and friends began asking her to make
pens for them. Eventually she decided to turn this
into her summer job, but she wanted to use the
money she made to help others.
“I chose Children’s Miracle Network Hospitals
because I knew Ace was a sponsor and I wanted
to help too.” On August 17, 2012, she presented a
check for 100 percent of her sales—$1,105.00—to
the Ace Foundation for Children’s Miracle Network
Hospitals. In turn, ShurTech Brands, the maker
of Duck Tape, surprised Kaylee with a basket of
Duck Tape and a vase of Duck Tape flowers—and
then made a matching donation to CMN Hospitals
in Kaylee’s honor.
Kaylee is just one of many miracle makers helping
kids in her community. Her story shows that you
are never too young to make a difference in the
lives of others.
Ace Hardware received the first Corporate
Champions for Children’s Award this year in
recognition of the Foundation’s long-standing
philanthropic support of Ann & Robert H. Lurie
Children’s Hospital of Chicago (formerly
Children’s Memorial Hospital).
Corporate support plays a critical role in funding
children’s healthcare and represents a significant
amount of annual giving to Lurie Children’s. The
2012 Corporate Champions for Children’s Award
recognized the more than $6.1 million that the Ace
Foundation has donated to the hospital to help
support the 148,000 patients and families treated
each year. Ace achieved this through employee
giving, events, retailer in-store campaigns and
vendor relationships. John Venhuizen, president
and COO of Ace Hardware, accepted the award
on behalf of the entire Ace family.
In addition, in 2012 Ace was recognized for its
tremendous support of Lurie Children’s through
the dedication of the Ace Hardware Outpatient
Clinic Waiting Room, located on the hospital’s
fourth floor. Due to Ace Hardware’s commitment
to improving the lives of others, children in
Chicago and throughout the U.S. will continue
to benefit from our generosity for years to come.
T OGET HER WE A RE A C E
Ace Retailers, the Ace Foundation
and the American Red Cross:
Providing Aid During Hurricane Sandy
On October 29, 2012, Hurricane Sandy—the
largest Atlantic tropical system on record—made
landfall just south of Atlantic City, New Jersey,
bringing winds up to 90 mph and pushing a
massive storm surge onto beaches and shorelines.
Twenty-four states were affected by this massive
storm, and thousands of people found themselves
in need of help.
The Ace family shines brightest during the
darkest, most difficult days. Retailers across
the region were quick to make a difference in
their communities, offering tools and supplies
with an attitude of service, both before and
after the storm. Many owners and employees
went the extra mile to keep stores stocked and
open for as long as possible before conditions
became overwhelming. Of Ace’s 500 stores in the
region directly affected by the storm, 450 stores
managed to open on October 30th—a testament
to Ace’s dedication and willingness to pull together
in times of need.
The Ace Foundation—along with its retailers,
vendor partners, and corporate team members—
answered the Red Cross’ plea for help. Over the
years Ace Hardware, through the Ace Foundation
has partnered with the Red Cross during disasters
to provide much needed funds and supplies, and
Hurricane Sandy was no exception. Ace donated
over $50,000 in funds and products to help those
affected by this massive disaster.
In the image shown below, owner of Pedrotti
Ace Hardware in Benicia, Gene Pedrotti, (left)
presents a check for Superstorm Sandy relief on
Thursday to (from left) John Collister, Red Cross
Disaster Action Team lead; Sandra Collister, DAT
member and Disaster Heath Services co-lead;
John Williams of the Red Cross Disaster Services
Human Resources, who recently traveled to the
East Coast to help Sandy victims; and Debbie Yee,
Disaster Services Manager for Solano County.
Photo provided by The Benicia Herald
TO G ETH ER W E ARE AC E
SIXTH ANNUAL GOLF OUTING
Ace retailers in the Houston, Texas area continued
the fundraising momentum in 2012 by hosting their
annual golf outing on October 22, 2012. More than
180 owners, store associates, vendors, truck drivers
and corporate personnel participated, representing
a total of 25 stores. They helped raise funds through
raffles, auctions, betting packages, and the famous
“ball roll.” Their efforts paid off: The event raised
more than $74,000 for Texas Children’s Miracle
Hospital, proving that “things really are bigger
in Texas!”
Ace is bigger than ever in Texas, thanks
to the generosity of Houston retailers.
GRILL YOUR ACE OFF EVENT
On October 20, 2012, Bill Murff, owner of Cypress
Ace in Houston, Texas, hosted his second annual
“Grill Your Ace Off” event. Sixteen teams provided
tastings for more than 300 customers. Each team
competed for the title of grilling champion—and
while the competition was stiff, the atmosphere
was all about helping kids receiving medical
assistance at Texas Children’s Hospital in Houston.
For a $5 donation, each donor was able to
load up a plate of delicious Texas barbecue.
This popular event raised more than $7,700 for
the hospital. Local media was on hand to “judge”
the contestants and help spread the word about
the great work Bill is doing in his community
on behalf of Ace.
RACING FOR MIRACLES
The Racing for a Miracle initiative, held in June
2012, was created by Stanley Tools, the Ace
Foundation, and Children’s Miracle Network
Hospitals to benefit sick and injured children
by raising funds for the hospitals that provide
their care. As part of the special week of events,
representatives from the founding organizations,
along with Richard Petty Motorsports (RPM)—
including Marcos Ambrose and members of his
No. 9 Stanley pit crew—visited the UC Davis
Children’s Hospital, a Children’s Miracle Network
hospital in Sacramento, California. Ambrose
and his crew spent time with the patients and
their family members, performing pit stop
demonstrations, participating in remote control car
races, and engaging in other kid-friendly activities.
Over the past 20 years, with the support of
dedicated Ace retailers, employees, and vendor
partners, the Ace Foundation has donated more
than $630,000 to the UC Davis Children’s Hospital.
Ace has been a corporate supporter of Children’s
Miracle Network Hospitals since 1991 and has
TO G ETH ER W E ARE AC E
raised more than $53 million nationally over the
past 21 years.
On Friday, June 22, Marcos Ambrose and
representatives from Stanley Tools presented
a $100,000 donation to the Ace Foundation and
Children’s Miracle Network Hospitals in Sonoma,
California. Following the check presentation,
Ambrose unveiled a special paint scheme on his
race car featuring the names of current and former
CMN hospital patients who have met their unique
medical challenges with exceptional courage.
Four of these special children also served as
“Honorary Pit Crew Members” of the No. 9 team
throughout the race weekend.
“My team and I are honored to be able to host
these children and show them what racing is all
about,” said Ambrose. “It’s just great to be a part
of such a special program. It meant the world to
my crew and me to see the smiles on these kids’
faces throughout the weekend.”
SERVING
WELL
Ace Hardware owners and employees
truly live their philosophy of customer
service. “The helpful hardware place”
is not just an empty slogan; it’s
something that permeates every
level of the company. Ace retailers
go above and beyond to foster
relationships with their customers
and provide helpful solutions for
them, and that has never been
more evident than in 2012.
Mark Pellicci, owner of Pellicci Ace
Hardware stores in Eagan, Farmington,
and Zumbrota, Minnesota, recently received
this email about one of his Farmington
store associates, Josh Solinger, who
went above and beyond for a customer
who needed a lawn mower.
Dear Ace,
A couple of weeks ago, My nine-year-old lawn
mower had seen better days. Both my daughter
and my brother-in-law recently purchased Toro
Personal Pace ® lawn mowers. One was from Ace
Hardware in Apple Valley; the other was from
an Ace Hardware in Minneapolis. They seemed
pleased with their mowers, so I thought this
would be a good model for me as well.
I called Pellicci Ace Hardware and talked with
Josh Solinger. He was very informative and, even
though there weren’t any Toro Personal Pace ®
mowers in the store, he quickly made a call to the
Toro representative. I had a new mower within one
day. Since I have a small car, there was no way for
me to transport the mower. But Josh delivered it—
no charge. Talk about fast, excellent service!
However, I soon discovered that the mower wasn’t
a good fit for me. I am 4 feet 11 inches tall, and
the handlebars were way too high—and on that
particular model, they couldn’t be adjusted. So
Josh came and picked up the mower—again,
no charge.
Josh called me within a short time and informed
me of another Toro Personal Pace ® model with
three adjustable heights for the handlebar. The
very next day Josh delivered the new mower to
me, again free of charge.
It’s been a long time since I’ve received such
superb customer service. Josh even followed
up after I had used the mower to make sure
everything was all right.
Because of my recent experience with Josh’s
service, I’m convinced: Pellicci Ace Hardware
is the place!
+++++
John Venhuizen, President and COO of Ace
Hardware, had some words of appreciation for
Josh and store owner Mark Pellicci:
“Your employee won the day. Kudos to Josh for
being the helpful hardware man!
Culture starts
at the top—so kudos to you for setting the tone.
Your leadership is what makes Ace great! The big
boxes will always be about promos, pricing, and
huge parking lots. But Pellicci Ace Hardware has
apparently always known – it’s about people!”
T OGET HER WE A RE A C E
SERVICE &
THEN SOME
Mike Valken began working at Macomb
Ace Hardware in Macomb Township,
Michigan, when he was 16 years old; now
at age 20 he is on the management team.
Mike embodies a service attitude both at
work and in his personal life—it’s just who
he is. Add to this initiative, a drive to be the
best, a passion for all things Ace, and you
have a pretty special representative of the
Ace brand, as the following letter highlights.
Dear Ace,
I am writing to you on behalf of your store in
Macomb Township, Michigan. I am currently
in the Air Force, and six months ago I was
transferred to Michigan, and my wife and I moved
into a house down the street from Macomb Ace
Hardware. To be honest, I had never shopped
at Ace. I was used to the “big box” stores and
their “service”—in other words, I expected very
little. Our rental house started to have issues,
and while I was at work, my wife would try to fix
the small things. She went into Ace Hardware
and was blown away by the service of one young
man: Mike Valken.
He helped my wife fix a leaking pipe under the
sink, offering to walk her through the steps over
the phone if she had any issues. I’m not sure how
long he spent on the phone with her, but in the
end, she was able to fix it on her own. After that,
my wife became a dedicated customer.
I went in to Ace about three weeks ago, and Mike
helped me fix my toilet. I needed a new one but
never had installed one before. The knowledge this
young man had was amazing and incredibly
valuable. I was able to fix my toilet quickly, and
Mike saved me a lot of money by not having to call
a plumber. After wanting to speak to his manager
about Mike’s excellent service, I found out that
he was just nineteen years old, and he was
the manager!
The next day we ran into Mike at a local restaurant.
I just had gotten off work and was still in uniform.
Mike walked over and apologized for interrupting
our meal but wanted to know if everything went
well on installing the new toilet. Seeing that I was
in the service, he thanked me for what we do.
Before we left, Mike returned to our table and
said, “Thanks for being great customers and
enjoy your meal.” We found out later that he
had picked up our tab.
Michael Valken proved to us what Ace is all about:
friendly, helpful employees of a well-stocked
neighborhood hardware store. We are currently
being transferred to New York, and I’ll be sure to
look for my local Ace Hardware. My family and
I will be repeat customers as long as possible
due to this young man’s dedication to your
amazing company.
T OGET HER WE A RE A C E
THE
ONE-STOP
SHOP
With the addition of Ace Express, Ace can
provide smaller format retailers with tools
that make them more successful.
Ace Express is a new retail format that fits into
3,000 square feet or greater. Not meant to be
used in areas that could support a larger Ace
store, Ace Express is designed for markets
currently closed due to market size or occupancy
costs. The format is available to existing Ace
owners, as well as other small business
owners—grocery or paint stores, for example.
Ace Express (an internal term, not used for
signage) was created to meet the demand for
a smaller format store to bring Ace to urban and
rural markets not currently available for larger
Ace stores. It also offers a new opportunity
for a “store within a store”.
Ace Hardware has over 380 successful existing
locations under 4,000 square feet, and the
productivity of these stores shows a tremendous
opportunity for additional stores. Highly efficient
merchandising techniques provide greater
capacity in a smaller footprint, while still providing
over 11,000 of the most productive hardware
products. The Ace Express model is a strategic
way for Ace to drive growth, improve brand
awareness, and build loyalty with retail partners.
TO G ETH ER W E ARE AC E
Ace Hardware Board of Directors
Ace Hardware Officer Team
First Row Left to Right
Second Row Left to Right
Front Row Left to Right
Second Row Left to Right
JOHN COSTELLO
Non-Member Director, Atlanta, GA
JAMES HATCHER
Member Director, Richmond, VA
TOM KNOX
Vice President, Retail Development
JIMMY ALEXANDER
Senior Vice President, Human Resources
and Communications
JOHN PATRICIA
Member Director, Payson, AZ
DAVID ZIEGLER
Chairman of the Board, Elgin, IL
RICK WHITSON
Vice President, Retail Support
JIM ACKROYD
Member Director, Naples, FL
JEFF GIRARD
Non-Member Director, Jacksonville, FL
PETE TING
Vice President, Treasury and International Finance
BRETT STEPHENSON
Member Director, Rock Springs, WY
DAVID KARSTEN
Member Director, Cave Creek, AZ
RAY A. GRIFFITH
Chief Executive Officer
GINA SCHAEFER
Member Director, Washington, D.C.
TODD STEADMAN
Member Director, Miles City, MT
LORI BOSSMANN
Senior Vice President, Supply Chain
and Retail Support
JOHN VENHUIZEN
President and Chief Operating Officer
MIKE ELMORE
Chief Information Officer
BILL GUZIK
Chief Financial Officer
Third Row Left to Right
KANE CALAMARI
Vice President, Retail Operations
and New Business
JOHN SURANE
Senior Vice President, Marketing,
Merchandising and Sales
TO G ETH ER W E ARE AC E
In 2012, whether it was economic challenges
or unexpected hurricanes, Ace owners and
associates demonstrated community spirit and
caring. They reached out in a multitude of small
ways that made a difference to those in need.
Going beyond Ace Hardware’s legendary
customer service, together, Ace is committed
to making the world a better place—one store,
one community at a time.
TO G ETH ER W E ARE AC E