April 15, 2009, 12:00 AM

Ace Hardware hammers out a hefty increase in 2008 web sales

Though it still only accounts for a small percentage of all revenue, Ace Hardware pounded out a 37% increase in 2008 web sales while total sales remained flat.

Though it still only accounts for a small percentage of all revenue, Ace Hardware Corp. hammered out a healthy increase in 2008 web sales while total sales declined.

For the year, Ace, No. 473 in the Internet Retailer Top 500 Guide, increased web sales by 37.2% to $11.8 million from $8.6 million in 2007. Total sales in 2008 declined by 2.8% to $3.86 billion from $3.97 billion in the prior year. Ace, a cooperative representing 4,600 independent hardware, home center and building materials retailers, doesn’t break out comparable store sales. The web accounted for 0.3% of total sales in 2008 vs. 0.2% in 2007. Net income for Ace declined year over year by 1.2% to $85.8 million from $86.9 million.

Ace, which uses GSI Commerce Inc. to manage its e-commerce platform, doesn’t break out quarterly e-commerce sales. But total sales declined by 0.19% to $956.1 million from $957.9 million in the fourth quarter of 2007. Q4 net income decreased by 27.1% to $15.3 million from $21 million in the fourth quarter of the prior year.

Despite its small e-commerce sales base, Ace still expects big things from its web store to drive multichannel sales. About 77% of all shoppers on AceHardware.com now use the site’s order online/pick-up in store program, says Ace e-commerce marketing supervisor Mark Lowe.

When they pick up an item ordered online, about one-third of shoppers also make additional store purchases, says Lowe. “We had a strong year on the web in 2008 and shoppers and Ace store owners like the order online/pick-up in store option,” he says. “The program drives customers to AceHardware.com and our network of stores and increases customer loyalty.”

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From IR Blogs

FPO

Bryan Gudmundson / E-Commerce

Which incentives are best at saving the sale?

It’s not necessarily the most valuable incentive that converts the best, a case study shows. ...

FPO

Heather Smith / E-Commerce

Taking advantage of the sharper marketing tools from Pinterest

Pinterest’s revamped private messaging system gives retailers more options for directly connecting with influential and ...

Advertisement