In Orlando, paint leads the way
Orlando, Florida – Ace’s current merchandise strategy is heavy on the paint department, but there were plenty of other categories making news in the 850,000 square feet of exhibits here at the Orange County Convention Center.
Ace Hardware VP Merchandising Frank Carroll, speaking during the General Session here at the 2014 Fall Ace Convention & Exhibits, described the market as “a retail wonderland” with paint leading the way.
Some 3,500 stores have executed the roll out of a Paint Studio concept. Interior paint sales are up 11% and exterior paint sales are up 18% year to date.
“We’re on our way to creating this world-class paint destination with the Paint Studio,” he said. “But we’re not standing here thinking that were done.
Ace plans seven paint national marketing events in 2015, up from four in 2014. The co-op is also planning adjustments beyond its Clark + Kensington and Valspar brands -- workhorse brand Royal paint is getting a makeover. “We know that 43% of the market is under 25 dollars,” said Carroll. “And we have to make sure that we get our share of that market. That’s a real opportunity for all of us.”
And seeing room for improvement in its 4% market share in stains, Ace is planning a national program with Cabot. “When they come in the stores, they’re going to know we’re serious [about stain],” Carroll said.
The merchandise strategy strives to provide differentiation and localization, he said.
Beyond paint, Carroll talked about power tools, builder hardware and cleaning suppliers as he led retailers virtually around the show floor. In the area of outdoor recreation, Carroll pointed to more than 1,800 skus across various niches – including marine, sporting knives, fishing, food dehydration and camping.
The company’s analytics team introduced a Niche-O-Meter, to test a store’s potential in various outdoor niches, based on a store’s geography, demographics and proximity to outdoor recreation areas.
Highlights from the plumbing aisle include a comprehensive plumbing package reset, with a regional touch, the best brands and a training program. The company said plumbing ranks number third among Ace categories in both sales and profit. But despite that retailers are only 66% compliant with the Ace assortment – showing room for growth in the core category.
In the lighting category, Ace is putting together an end caps and markeing plans on LED, as the industry moves increasingly toward higher-priced, longer lasting bulbs. . “This is going to show that you’re capable, that you are in the LED market and you have the right selection. We’re going after this and we’re taking it very seriously.”