Ace Hardware Maintains Top Tier Status with Market Growth
Ace Hardware Maintains Fifth Position in Franchise Times Top 400
Ace Hardware, recognized as the largest retailer-owned hardware cooperative globally, has proudly retained its fifth ranking in the annual Franchise Times Top 400 List, marking the third consecutive year. This prestigious list categorizes the largest U.S.-based franchise systems by global systemwide sales, placing Ace Hardware alongside significant fast-food franchises like McDonald's and KFC.
Steady Growth Contributors
The continuous growth of Ace Hardware showcases a remarkable achievement, contributing to its stable position within the top five franchises. In the last reporting year, Ace Hardware recorded a commendable $23.3 billion in retail sales, reflecting a +0.6% increase from the previous year. Factors driving this increase include an upswing in market share and an ambitious rate of new store openings.
New Store Expansion
In an impressive move, Ace Hardware inaugurated 203 new domestic locations and opened a total of 222 new stores worldwide. This expansion has resulted in an overall unit growth of +2.2%, bringing as many as 5,870 total units operating across the United States. The commitment to expanding its business footprint further enhances Ace Hardware's presence in local communities.
Focus on Local Entrepreneurship
The organization emphasizes its dedication to supporting independent owners, as most Ace locations function as retailer-owned cooperatives. Andy Enright, Senior Vice President of Retail Strategy and Operations, expressed pride in the company's accomplishments, stating, "We are committed to enhancing our store model's profitability to support entrepreneurs opening new stores, serving their communities, and making meaningful local investments."
Patronage Dividends as Community Support
Ace Hardware differentiates itself from traditional franchise systems by allowing its store owners to be not just franchisees but also stakeholders. All year-end profits are shared back with local owners as a patronage dividend, which experienced a 3.5% increase in 2023, amounting to $356.5 million. This reflects a robust return on equity of 38.7% for the loyal shareholders. Notably, Ace Hardware store owners do not incur any franchise fees, making it an appealing opportunity for aspiring business owners.
About the Franchise Times Top 400
The Franchise Times Top 400 represents the only comprehensive ranking based on systemwide sales and units of the largest 500 U.S.-based franchise brands. The meticulous research and reporting effort necessary for this ranking spans five months, ensuring an objective and credible evaluation of the franchise landscape.
Industry Insights and Future Prospects
Published annually in October, the Franchise Times Top 400 includes valuable insights into industry sectors, highlights the 10 fastest-growing franchises, and features exclusive news articles pertinent to the franchising community. With its prestigious status and numerous accolades, Ace Hardware remains a model of sustainable growth, looking to the future with optimism while enhancing its community connections.
Frequently Asked Questions
What is Ace Hardware's ranking in the Franchise Times Top 400?
Ace Hardware maintains the fifth position in the Franchise Times Top 400 for the third consecutive year.
What are the latest sales figures for Ace Hardware?
Ace Hardware reported retail sales of $23.3 billion, marking a +0.6% increase from the previous year.
How many new stores did Ace Hardware open recently?
Ace Hardware opened 203 new domestic locations and 222 new locations worldwide, achieving +2.2% unit growth.
What is the patronage dividend for Ace Hardware owners?
The patronage dividend increased by 3.5% in 2023, totaling $356.5 million for the owners.
How does Ace Hardware support local entrepreneurs?
Ace Hardware operates as a cooperative, allowing owners to be stakeholders, which fosters local investments and community support.
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