Ace becomes the helpful hardware delivery place

Ace Hardware is known for its "helpful" approach to customer service, and the retail cooperative is taking the next step on that path with a same-day delivery pilot program at 33 stores located in Arizona, Colorado, Florida, Illinois, Maryland and Texas. The plan, if the "Express Delivery" pilot proves successful, could be rolled out across the country.

The pilot, which began on Jan. 26, allows customers to go to the Ace website and order products to be delivered from a local store on the same day. There is a $5 charge for the delivery. To be eligible, customers must live within five miles of their local Ace store and place their order by 1 p.m.

"About 61 percent of consumers across the country live within five miles of their neighborhood Ace, and that proximity to the household sets us apart," said John Surane, executive vice president, marketing, merchandising, and sales, Ace Hardware Corporation. "The Ace Hardware brand has always been synonymous with helpful and excellent customer service, so Express Delivery from your local Ace store represents a perfect extension of our brand promise — ‘Amazing Every Customer, Every Time.’ We also think there’s a huge value to consumers in having their products delivered by a helpful Ace associate, who they might even recognize from their local store."

Ace currently offers online ordering and free in-store pickup at more than 1,600 locations across the U.S. J.D. Power has ranked Ace Hardware as highest in customer satisfaction for eight years running.

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Discussion Questions

Will Ace’s Express Delivery program help the cooperative’s retail members grow their businesses? What do you see as the greatest challenges and opportunities for the local stores responsible for executing the program?

Poll

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Paula Rosenblum
Paula Rosenblum
9 years ago

Well, if they could pull it off, I think it would give them an interesting hook into Home Depot’s contractor base. I can’t tell you how many times someone doing a job for me had to leave or otherwise send their assistant off to Home Depot to get a part. The $5 delivery fee would be a good deal for everyone involved.

Having said that, I have the same concerns about same-day delivery in this case as I do with all others—it’s complicated. Certainly Florida and parts of Arizona (for example) are easier, they’re both flat with a simple grid road system and not a lot of very old buildings. Illinois might well prove to be a lot harder.

It’s a niche market, and maintaining customer satisfaction levels for $5 might be really tough.

Max Goldberg
Max Goldberg
9 years ago

When I visit my local hardware store (versus a big box home supply store), it’s almost always to get an item that I need right now, and the bill is usually less than $20, so I would not be a good candidate for Ace delivery. I don’t want to wait for an item to arrive, and I don’t want to pay $5 for the delivery.

I greatly value the expertise of the guys who run the store, often relying on them to determine what item to purchase to make a needed repair. For me Ace delivery does not make sense.

Not every retailer can or should offer delivery. The best way for hardware stores to attract and keep customers is to have knowledgeable staff on hand and needed products in stock. Leave delivery to grocers.

Naomi K. Shapiro
Naomi K. Shapiro
9 years ago

Yes. Yes. Yes. Ace has always impressed me with its quiet and very effective customer service. The delivery, done as effectively, can only enhance the growth of its retail business. I don’t expect them to run into many problems with the deliveries, as they are a good business example—which just reminded me to shop there in the future rather than my local Home Depot helter skelter-type store.

Anne Howe
Anne Howe
9 years ago

I like this idea but the five mile radius limitation confuses me. For one thing, if 61 percent of customers live within five miles, that’s a super quick trip to go pick up what you want and is faster than delivery by a long shot. So why wouldn’t Ace extend the radius even if just to eight miles and try to go after the conversion opportunity, especially in areas where there are lots of Millennials who don’t have a lot of fix-it skills?

Seems like the “helpful folks” proposition could have a lot of legs by not only delivering stuff but passing out helpful hint cards about simple household repair projects with shopping lists.

Overall though, I commend Ace Hardware for testing and learning and being open to helping the customer. This fits with their culture and makes a lot of sense.

Roger Saunders
Roger Saunders
9 years ago

Kudos to Ace for proactively taking this added “helpful” step. The home improvement domain has both male and female consumers who likely welcome the added support.

Ace can play off their strength of being “helpful.” The Prosper Monthly Consumer Survey of some 6,500-plus adults scores Ace in high regard on several important attributes or reasons to shop. Ace most often compares to stores other consumers shop. Ace is favored for location by 80 percent of their shoppers (135 index above competitors), positive service rating by 51.2 percent (209 index), knowledgeable sales staff 38.5 percent (194 index), trustworthy retailer 37.2 percent (146 index), and in-store experience 29.5 percent (167 index).

Their street cred positions them well for this added offering, and it builds that lasting relationship so important to merchants and customers.

Tom Redd
Tom Redd
9 years ago

No. Delivery is not the answer to growth, it is just a trend that will fade. Price for Ace is the trick that will help them grow. Their pricing needs a close look.

Gordon Arnold
Gordon Arnold
9 years ago

Fuel and labor isn’t cheap enough for this or the big boxes would be all in by now. This may rekindle interest and stimulate a little growth in floor traffic but when they are deluged with demands for low-margin free deliveries, like a couple of bags of mulch and a rake, I suspect this market plan will stop quickly.

Camille P. Schuster, Ph.D.
Camille P. Schuster, Ph.D.
9 years ago

This is certainly a “helpful” service to provide. Consumers just outside the five mile radius may start demanding service as well. If there is a central ordering system, the biggest challenge will be ensuring that all the participating stores have a way of keeping the software updated on their inventory levels and of communicating sales information to local stores so deliveries can be made. The local stores will have to adjust their staffing as well to make sure someone is available to make deliveries. This also means that the independent stores are willing to be more coordinated.

Ryan Mathews
Ryan Mathews
9 years ago

It should grow business, all things being equal.

The challenges include making sure the local stores are in-stock on a broad range of items (if they aren’t, people will get tired of using the website only to be told products aren’t available) and establishing a minimum value on an order. I really can’t see the value of delivering a 49 cent washer to me even if I am crazy enough to pay a $5 service charge.

Tim Caton
Tim Caton
9 years ago

Why not partner with an existing on-demand delivery infrastructure? I’d bet on an inverse relationship between peak hours at hardware specialty stores and pizza shops.

Lee Kent
Lee Kent
9 years ago

For 5 miles and $5, the typical DIYer would likely just jump in the car. If they are thinking of this as a way to cultivate more commercial business with contractors, this will barely start a fire.

Having been around Home Depot when they first started to cultivate that commercial business, it was discovered in a hurry that what attracted the contractors was pre-staged “loads.” This ended up as a completely separate warehouse. Just sayin’… for my 2 cents.

Ed Rosenbaum
Ed Rosenbaum
9 years ago

Let’s hope they can make this work. If so, they have a hook into Home Depot’s and Lowe’s customer base. Ace is synonymous with their tag line of being helpful. That has always been an asset for them. So if this is workable, and I think they can make it happen, sales will improve. But, just as important, they will not lose more to the competition.