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Ace History
Ace grows through the decades: General Overview The birth of an American cooperative: 1920-1940 As Ace Hardware celebrates its 80th anniversary, it's the perfect time to look back at the company's unique past, full of risk, ingenuity and belief in the American Dream. Today, we reflect on the very beginning, when the foundation that would stand the next eight decades, was built. In 1924, entrepreneurs Richard Hesse, E. Gunnard Lindquist, Frank Burke and Oscar Fisher united Chicago-area hardware stores to increase buying power and profits and, in doing so, forged the beginning of Ace Hardware. The following year, these men assembled an unofficial buying group. Their unique wholesale method of purchasing merchandise allowed them to obtain products for lower costs than they would have through regular jobber-wholesaler middlemen. In 1927, the group voted to form a corporation, as all indications suggested it was an ideal time to launch a new corporate venture. The economy had been expanding continuously for eight consecutive years. The mood of the nation was secure and hopeful – as President Hoover said in that year, "We in America today are nearer to the final triumph over poverty than ever before in the history of any land." 
By 1928, 11 retailers joined the fledgling company, now officially named Ace Stores, Inc. It was in this year that Ace Stores, Inc., was officially recognized by the State of Illinois. Each director - Hesse, Lindquist, Burke, Fisher, and a new affiliate, William Stauber – subscribed to 20 shares of the company's stock, a total investment of $200 per person and a $1,000 initial investment in the company. Ace opened its first warehouse, a 25,000-square-foot building located on Ontario Street in Chicago, in 1929. Its downtown address and increasing momentum pushed Ace toward more recognition and credibility among consumers. When the U.S. market crashed in October of that year, Ace benefited from the public's unwavering need for tools and hardware – even in the most unsettling economic times. Ace was a lean operation with relatively few employees and didn't have large stocks of inventory, which proved to be advantageous. While the 1930s brought uncertainty to many Americans, Ace's directors began to regard the concept the company's consolidated buying power as a commodity. By affiliating with Ace Hardware, dealers were protected. The overall mood at Ace was jovial and full of hope for the company's growth. In 1931, Ace Stores, Inc., officially changed its name to Ace Hardware Corporation. Ace's growing retailer base and buying power helped the company compete with mail order houses and chain stores like Sears Roebuck, Inc. By the end of 1933, Ace was 38 dealers strong, with stores in Illinois, Indiana and Wisconsin. The Sherman Hotel in Chicago was home to the first formal retailer convention. 
Ace aggressively pursued its expansion plan, opening three new stores in 1934, six in 1935 and eight in 1936. Ace was attracting increasing dealers from a broader geographical area. Similar cooperatives were attempted but failed due to poor leadership and lack of dealer collaboration. Ace dealer books and store bulletins began to reflect the attitude of Ace through a new motto, "Ace sets the pace," a phrase that would remain a part of Ace for decades. In 1937, eight retailers from Minnesota and North Dakota signed on with Ace, and in 1938, 16 more stores signed with the company. The founders referred to the Minnesota and North Dakota stores as the Northwest territory. With Ace Hardware rapidly growing in the Midwest, its retailers turned their energies toward improving their merchandising and developing innovative displays and promotions for their customers. In 1939, a push was initiated to improve merchandising. Officers visited grocery stores and pharmacies to investigate new methods of display and promotion. At the end of this year, the company published a catalogue called "Store Modernization," which gave dealers advice on updating stores. Among the recommended options were installation of all-steel fixtures, ledge bins that held merchandise in neat rows, self-serve sections and vertical panels, which would be used to hang tools for display. As the 1940s rang in, Ace was on its way to a brilliant future as the country's first cooperative hardware store, but obstacles would be uncovered for the company as America ventured into a world war. Ace's entrepreneurship and ingenuity in a time of labor and merchandise shortages was what would carry the company through. |