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In a major advancement in its supply chain, Ace Hardware in July opened a 1.5 million-square-foot retail support center in Kansas City, Missouri.
The state-of-the-art fulfillment center is centrally located as a means to quickly deliver products to the company’s network of over 5,000 locally owned stores throughout the U.S.
“It exists for one reason only: to help our locally owned stores serve their neighbors with excellence that has made Ace famous,” CEO John Venhuizen said in a statement.
People tour the Ace Hardware retail support center in Kansas City.
Image courtesy of Ace Hardware
The company declined to disclose specific financial details regarding the opening of the facility, but Retail Support Director Travis Thomas in an email to Retail Dive called it a “significant investment in our long-term growth.”
The retail support center measures half a mile, nearly twice the size of the company’s average distribution center, and contains advanced automation technology to streamline operations and minimize environmental impact. The facility joins a network of over a dozen distribution centers across the country.
“This investment is one more way we’re helping our neighborhood retailers stay well-stocked, competitive, and ready to meet the needs of their customers, with the backing of a supply chain that rivals the biggest names in retail,” Thomas said.
In its latest earnings, Ace Hardware reported revenues of $2.2 billion, an increase of 4.2% year over year. Net income in Q1 was down 35% to $30.3 million, in part due to a planned increase in marketing spend and investments in the company’s supply chain infrastructure.
Ace warned that tariffs would increase its cost of goods, and that the company intends to pass those increased costs on to consumers.
Editor’s note: This story first appeared in the Retail Dive: Operations newsletter. You can sign up for it here.