Page 80 - Entrepreneur - USA (January - February 2020)
P. 80

THE            FRANCHISE






































































                        Ace Hardware

              6

                         STARTED FRANCHISING  —               —                       —
                                               1976        TOTAL UNITS
                                                                                           $286K–$2.1M
                                                                    5,312        COST TO OPEN
         IF IT SEEMS like there’s an Ace     merce. “We’re in a war for rele-     their nearest Ace. “People don’t    and a store employee will
         Hardware everywhere you go,         vance,” says John Venhuizen,         like these things sitting on their   come measure your windows,
         that’s because it’s true. Over the   the company’s president and         porch all day,” says Venhuizen.     order the blinds, then return to
         past five years, 836 stores have     CEO. “The Amazon effect on           “It’s a safety strategy.” And once   hang them for you.
         opened in the U.S., which           retailers is significant.”            customers are in the store—           The company, now 95 years
         brings the total count to 5,312.       But Ace is bringing its mas-      who knows? Maybe they pick          old, could rest on its own
         According to the company,           sive footprint to the online bat-    up a couple more items on the       brand strength. But it’s not.
         75 percent of all U.S. homes        tlefield. The company recently        way to the register.                In September, Ace acquired
         and businesses are within           began locking in exclusive             The efforts bolstered Ace’s       Handyman Matters, a Denver-
         15 minutes of an Ace store, and     distribution deals with major        online sales 81 percent for third   based franchise that offers
         by leveraging that ubiquity, the    companies, such as Benjamin          quarter. And they come as icing     in-home handyman services.           PHOTOGR APH COURTESY OF ACE HARDWARE
         retailer managed to hit record      Moore and Stihl. Now custom-         on what already amounts to a        It will be rebranded as Ace
         sales of $16.6 billion last year.   ers can find those products only      stellar reputation for keeping      Handyman Services, and as a
            The figure is big any way you     online at Ace’s website. And 10      customers happy. “We have           brand extension, it proves the
         slice it, but it’s more impressive   months ago, it began allowing       an irrational pursuit of amaz-      point: Some things are just
         given the competition brick-        customers who shop on its web-       ing service,” says Venhuizen.       better in the real world.
         and-mortars face from e-com-        site to have orders delivered at     Example: Buy blinds from Ace        —GORDY MEGROZ



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