Ace Hardware Unveils Experiential "Elevate" Store Model

Ace Hardware is reimagining itself with a new store concept. The home improvement retailer plans to invest over $1 billion in the next five years to roll out "Elevate Ace" across new and existing locations.

"[We] wanted to create more than just a space where customers could come shop but a space in which they could connect," explained Dale Fennel, Ace's vice president of merchandising.

The revamped stores will feature brand showrooms, expanded product lines, and enhanced customer service. Some locations will even boast outdoor spaces with live plant displays. It's all part of Ace's push into experiential retail, which Fennel calls "one of the absolute imperatives" for the company's future.

Ace gave retailers a sneak peek at the concept during its recent Chicago convention. While a few stores will debut the new look later this year, the full rollout begins in January.

The redesign focuses on Ace's core strengths: paint, power tools, grilling, and home maintenance. But it's not just about products - it's about creating a unique in-store experience that online shopping can't match.

"We set out to really elevate those brands and create this immersive shopping experience that you can't find anywhere else," Fennel said.

This refresh comes as Ace celebrates its centennial year and the opening of its 5,000th U.S. store. The company added 111 new locations in the first half of 2024 alone.

To support the new concept, Ace is investing in employee training. Sales associates will act as brand experts, guiding customers through purchases based on preferences or specific features.

The product mix is changing too. While grilling sections will stay the same size, the power tool department will expand by about 60%.

Ace's cooperative model sets it apart from big-box rivals. The company doesn't typically sell building materials or large appliances, which has helped shield it from recent economic headwinds affecting home renovation spending.

While competitors like Lowe's and Home Depot saw sales dip in recent quarters, Ace reported 2.5% revenue growth in Q1.

"We know there's different purchase occasions, and customers are going to shop with different retailers," Fennel noted, "but that separation of home preservation versus home renovation is a key differentiator between us and big boxes."