The retailer who stands still is by definition falling behind. Profitable retailing is based on making changes. The changes most likely to succeed for retailers are gradual and based on the retailer’s existing strengths.
Ace Hardware’s current repositioning of their branding can be seen as consistent with this principle. The need for change was clear. Annual revenues have tumbled 10.4%. Current competition is keen from the Big Box home improvement stores, especially Lowe’s. That Big Box chain saw a dip in revenues of only 2.1%, and for some years, Lowe’s has been making a concerted effort to meet the needs of the consumer who feels unsure about their own home repair skills.
In an ad campaign breaking this week, Ace positions themselves as the resource for advice and convenience when taking care of home repair and minor fix-up projects. Regarding claims of helpful advice, Ace clearly is building on a recognized strength. RetailWire.com points out that for the past three years, both J.D. Power and Corporate Research International survey findings ranked Ace as highest in customer satisfaction in the home improvement retail category.
Regarding convenience, most U.S. consumers live closer to an Ace store than to a Big Box. And people generally find it easier to navigate through the Ace store because it’s more compact. The Home Depot experimented with a small store format, but seems to have stumbled.
Implementation of the Ace Corporate repositioning at the store level could be a challenge: Each Ace store is independently owned. Training, coaching, and pruning out deficient stores is essential. But regardless of how the Ace Hardware initiative turns out, the idea of basing changes on your strengths is a good lesson for all retailers.
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