Lowe’s is consolidating Ace Canada operations this year so the big-box retailer and the cooperative will share Canadian distribution functions.
Ace Canada will close two distribution centers and its main office in the country. Lowe’s distribution network and head office in Quebec will serve the Ace retailers instead, allowing for cost efficiencies, according to Lowe’s Canada.
“After a detailed and complete business review that included customers, products, programs and facilities, a decision has been reached to integrate the Ace Canada distribution and business centers into existing Lowe’s Canada facilities,” Lowe’s Canada reports.
Lowe’s owns the licensing rights to the Ace Hardware brand in Canada, but the co-op’s stores remain independently owned and operated.
The operational consolidations are part of the big box’s growth strategy for Ace Canada, according to Lowe’s. The big box plans to roughly triple Ace’s presence to 200 independent stores within the next five years.
Ace will benefit by gaining access to lower prices on products and more business help from Lowe’s Canada, according to Lowe’s.
“Integrating these operations in the Lowe’s Canada facilities and systems is a prerequisite of offering dealers a dedicated website with a platform for online sales and allowing them to take advantage of an omnichannel strategy,” says Alain Brisebois, executive vice president of affiliated dealers with Lowe’s Canada.