Presented today at Ace Hardware Autumn Congress 2024 in a 1200 m² store on the ELEVATE floor3 Ace is a new experiential store concept that will be introduced in new and existing stores over the next five years. Ace plans to invest $1 billion in this new initiative. 
Ironmongery took an exclusive tour of the Store on the Floor with Lisa Schmitt, Director of Store Development, and Dale Fennel, Vice President of Merchandising Operations, to learn more about the new concept.
RAISE3 Ace fits with Ace Hardware’s focus on paint, power, garden and grill, and home maintenance by expanding the retail space for those departments, Fennel says. The new store format will highlight those categories and brands that are driving growth. Brand loyalty has driven 109% year-over-year growth in this area.
“We also want to create a space where customers can not only shop, but also connect with these brands, our heroes in red vests and their community,” says Fennel.
In the new design, the front of the store will be dedicated to what Ace calls “brand immersive showrooms” that bring together everything the customer needs in that department.
“Whether it’s the design of the furnishings, the flooring or the backgrounds, everything is designed to make it feel as realistic as if the customer is shopping in a mini Weber or mini DeWalt store,” says Fennel. “It’s a complete shopping experience where the brand is the star.”
From the displays to the flooring to the signage, the immersive showrooms guide the customer through the brand’s entire offering, Schmitt says. Instead of having to visit three or four areas in the store, a customer can find everything they need in one place.
“In our pilot stores, we’re seeing really great results from a profit perspective because retailers can, for example, better attach the accessories to the grill,” says Schmitt. “Grills can be a low-margin category, but if you can fill the shopping basket by adding accessories, it’s a win-win for retailers.”
In power tools and garden equipment, the trend is in the area of batteries, as consumers want the convenience of a single battery for multiple tools and devices.
“We’re basically the only company in retail that brings these two categories together in one cohesive space,” says Fennel. “Because the battery is central to the consumer’s purchase decision and the brand, we’ve brought them all together.”
From front to back
In ELEVATE3 Ace, colour will continue to be a focal point of the stores, with the Helpful Hub and Colour Department in the middle of the store.
“What might have once been a traditional service counter and a dedicated paint mixing station have been brought together,” says Fennel. “This will be the heart and home of customer service in the store.”
RAISE3 Ace will also impact the rest of the store, which Fennel says is the heart of the business and the reason customers shop at Ace. The new format utilizes about 60% more space than a traditional store by improving space productivity in the back of the store.
“Seventy percent of the business’s profits are generated in the back of the store. That’s where customers come to repair, service and maintain their home,” says Fennel. “So we’ve put measures in place there to make sure we’re credible and have the right offering. Customers get what they need, but we’re also improving the economics of our stores in terms of productivity so everything works together harmoniously.”
The new store format will also improve customer service, Fennel says. In the grill department, Ace is launching a digital grill assistant that will help employees improve customer service by allowing them to walk customers through qualifying questions to help them find the right grill.
“Employee training is also a big focus for us, so when we start combining incredibly well-trained, passionate store associates with a modern and improved environment, the customer has all the tools for an incredible experience,” says Fennel.
Loss prevention also plays a role in the new store format, with non-invasive methods such as cages and take-home registration cards being integrated into the immersive exhibition spaces.
“We try to adequately protect the safety and profitability of the business, while at the same time ensuring that customers can touch and feel the product,” says Fennel.
Roll out
As ELEVATE3 Ace will be rolled out over the next few months. Schmitt says Ace has a team that helps retailers roll out the new program. The store planning team works on designing and creating the plans. The team starts with a template in various size formats and works with the retailer and project management team to develop the store format.
“We work with each retailer’s needs, their market and the structure of their business,” says Schmitt. “No two stores are the same, so we have a complete process to take each store’s specific data and customize the template accordingly.”
Since launching in pilot stores, ELEVATE3 Ace has generated 11% more sales than the control stores and has seen a 5% increase in gross profit compared to the control stores. Schmitt says the feedback in the pilot stores has also been extremely positive.
“There’s a lot of excitement about the new and about this fresh and different brand focus,” she says. “I think a lot of stores are responding really well to the concept.”
