Introduction
For many homeowners, DIY enthusiasts, and professional contractors, a dependable local hardware store is an indispensable resource. But with so many options out there, from big box chains to mom-and-pop shops, it can be tough to know where to turn for the best selection, service, and value. Two of the most prominent names in the hardware game are Ace Hardware and True Value, but are these retailers really one and the same? As a discerning shopper and retail industry expert, I‘ve dug deep to uncover the truth about these two hardware heavyweights.
Hardware Cooperatives 101
First, let‘s clarify what exactly Ace Hardware and True Value are. Both companies are classified as "hardware cooperatives," meaning that they don‘t actually own most of the stores that bear their name. Instead, they act as wholesalers and service providers for a network of independently owned and operated retailer members.
Here‘s how it works: an entrepreneur decides they want to open a hardware store. Instead of starting from scratch, they can choose to affiliate with a cooperative like Ace or True Value. In exchange for an initial investment and ongoing fees, the store owner gains access to the co-op‘s branding, product inventory, marketing resources, and other support services. However, the individual store owner maintains a significant degree of autonomy over their business.
This model allows hardware stores to maintain a local, community-oriented feel while still benefiting from the economies of scale and brand recognition that come with being part of a larger organization. According to the National Cooperative Business Association, there are over 29,000 cooperative businesses in the United States across all sectors, with a combined membership of over 350 million people.
Tale of the Tape: Ace vs. True Value
Now that we‘ve covered the basics of hardware cooperatives, let‘s take a closer look at how Ace Hardware and True Value stack up against each other.
Store Count and Footprint
As of 2021, Ace Hardware is the larger of the two companies by store count, with over 5,000 locations worldwide and more than 4,000 in the United States alone. True Value, by contrast, has around 4,500 stores across 60 countries, with approximately 2,500 of those located in the U.S.
However, True Value stores tend to be a bit larger on average, with a typical store size of around 25,000 square feet compared to Ace‘s average of 10,000 square feet. This means that while Ace has more locations overall, True Value may offer a somewhat wider selection in each individual store.
In terms of geographic distribution, both Ace and True Value have a strong presence across the United States, but with some regional differences. Ace Hardware stores can be found in all 50 states, with the highest concentration in California (nearly 500 stores), Texas (over 400), and Florida (over 300). True Value‘s top states are New York (over 200 stores), Pennsylvania (over 150), and Ohio and Illinois (around 140 each).
Financial Performance
As private companies, Ace Hardware and True Value don‘t regularly disclose detailed financial results. However, some key stats and figures are available that shed light on their recent performance and market position.
In 2020, Ace Hardware reported record revenue of $7.8 billion, up 27.9% from the prior year, driven by same-store sales growth of 25.9% as the pandemic drove a surge in home improvement spending. The company also opened 182 new stores and boasted a record $616.2 million in net income for the year.
True Value doesn‘t report systemwide sales, but the company says it serves over 4,500 retail locations worldwide with annual purchasing volume of around $3.5 billion. In 2019, the company‘s last year as a cooperative before its sale to ACON Investments, True Value reported gross billings of $1.97 billion and revenue of $1.5 billion.
Based on these figures, it‘s clear that Ace Hardware is the larger and more financially robust of the two companies, but both have a significant presence in the hardware retail sector. According to the North American Hardware and Paint Association, the total home improvement market in the U.S. was worth $439 billion in 2020, with hardware stores accounting for around 16% of that total.
Brand Recognition and Customer Satisfaction
In terms of brand awareness and perception, Ace Hardware has a slight edge over True Value according to recent consumer surveys and rankings. In a 2021 study by Market Force Information, Ace ranked as the second-favorite home improvement retailer (behind Menards) with a 64% satisfaction rating, while True Value came in sixth with a 58% score.
Ace also regularly tops lists of the best hardware store chains thanks to its reputation for excellent customer service and helpful staff. The company‘s long-running slogan, "Ace is the place with the helpful hardware folks," has become synonymous with the brand. True Value, while still well-regarded, doesn‘t have quite the same level of name recognition or emotional connection with consumers.
That said, both Ace and True Value stores can vary significantly in terms of customer experience and product selection depending on the individual owner and location. Many shoppers appreciate the personal touch and community feel of their local Ace or True Value, even if the prices may be slightly higher than at a big box store.
Challenges and Opportunities
Looking ahead, both Ace Hardware and True Value face a rapidly evolving retail landscape with plenty of challenges and opportunities. One major threat is the continued growth of e-commerce, which has disrupted traditional brick-and-mortar retail across the board. According to the U.S. Census Bureau, e-commerce sales accounted for 13.6% of total retail sales in Q1 2021, up from just 4.2% a decade earlier.
To stay competitive, both Ace and True Value have invested heavily in their online and omnichannel capabilities in recent years. Ace Hardware launched a new e-commerce platform and mobile app in 2019, allowing customers to shop online for in-store pickup or delivery from their local Ace store. The company also offers an "Ace Rewards" loyalty program with personalized offers and exclusive deals.
True Value has also beefed up its digital presence since its acquisition by ACON Investments, with a refreshed website, enhanced online product information and search functionality, and new ship-to-store capabilities. However, the company‘s e-commerce sales still represent a small fraction of its overall revenue compared to larger competitors like Home Depot and Lowe‘s.
Another challenge for hardware cooperatives is the ongoing consolidation within the home improvement retail sector. In recent years, big box chains have gotten even bigger through mergers and acquisitions, such as Lowe‘s $1.6 billion purchase of Canadian retailer RONA in 2016. This has put pressure on smaller players like Ace and True Value to find ways to differentiate themselves and maintain their market share.
At the same time, the pandemic-driven boom in home renovation and DIY projects has created new opportunities for well-positioned retailers. According to a survey by the Home Improvement Research Institute, 81% of homeowners did some type of home improvement project in 2020, with the average spending per household rising to $7,560. While some of this demand may fade as the pandemic subsides, the long-term outlook for the sector remains positive.
For Ace and True Value, this means continuing to lean into their strengths as locally-focused, service-oriented retailers while also adapting to changing consumer preferences and shopping behaviors. This could involve expanding into new product categories, investing in technology and data analytics, and finding creative ways to engage with customers both online and in-store.
Conclusion
So, are Ace Hardware and True Value really the same thing? The answer is both yes and no. While they share many similarities as hardware cooperatives, they are ultimately separate companies with their own unique histories, strategies, and competitive positions.
Ace Hardware, with its larger scale, strong brand identity, and focus on customer service, seems well-positioned to maintain its leadership position in the industry. True Value, while smaller and perhaps less well-known, has shown resilience and adaptability in the face of change, particularly since its transition to private ownership.
For consumers, the choice between Ace and True Value may come down to factors like location, store size, and individual customer service rather than any overarching differences between the two companies. And for independent hardware store owners, the decision to affiliate with one or the other will depend on a careful evaluation of the costs, benefits, and fit with their specific business goals and values.
Regardless of which banner they choose, there‘s no denying that Ace Hardware, True Value, and the thousands of independent retailers they support play a vital role in the fabric of local communities across the country. In an era of increasing consolidation and e-commerce dominance, these two hardware cooperatives offer a refreshing alternative for those who value personalized service, neighborly advice, and a human connection that goes beyond just the nuts and bolts of the transaction.
So the next time you‘re in the market for a new power drill, a gallon of paint, or just a friendly face to help you tackle your next DIY project, consider giving your local Ace or True Value a try. You might just discover that helpful hardware folks are never too hard to find.
