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Ace Hardware Same Store Sales Up 4.3 Percent in 2013

Ace Hardware in Kentucky
photo by bmm

OAK BROOK, Ill. – Ace Hardware Corporation, the largest retail cooperative in which franchisees own the franchisor, has reported its fiscal 2013 revenues. Comparable store retail sales were up 4.3 percent in 2013 versus 2012 as well as rose 3.5 percent in the fourth quarter.

"Ace retailers also had a very good year," said John Venhuizen, Ace president and chief executive officer. "75 percent of retailers surveyed reporting record net profits."

When the chain's 3,000 plus store owners enter the system, their franchise fee is applied to ownership, or shares, of the franchisor. Delegates from the store owners comprise Ace's board of directors to strategize on where its officers need to take the company.

Do Ace store owners know how to direct their franchisor? Apparently so. Corporate revenues were $4.2 billion, an 8.2 percent increase from 2012. The company's net income was $104.5 million, a 27.8 percent increase from 2012.

As the franchisees improved so did Ace Corporation. "2013 was a record year for the Company," commented CEO Venhuizen. "We outperformed our operating plan, exceeding $4 billion in consolidated revenues and $100 million in net income for the first time in our history. These achievements were the result of the hard work and perseverance of our retailers coupled with the support and dedication of our employees."

The franchisee cooperative and its subsidiaries also operate 14 distribution centers in the U.S. 

Ranked for seven straight years as "Highest in Customer Satisfaction among Home Improvement Stores" by JD Powers, Ace reported that it added 152 new domestic stores and cancelled 85 domestic stores in fiscal 2013 for a net increase in store count of 67. This brought the total domestic store count to 4,171 at the end of 2013.

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Don Sniegowski is editor of Blue MauMau, the daily news journal for franchise & small business owners. Call him at +1 (270) 321-1268, tweet @bluemaumau or email don@bluemaumau.org.