Ace Hardware Corp. saw revenue, income and store sales increase during the second quarter of 2020 as consumers shifted their spending in response to the COVID-19 pandemic.
The co-op reports revenues of $2.3 billion for the months of April, May and June, for an increase of 35.1 percent over the second quarter of 2019.
The 2020 second-quarter revenue by itself is more than one-third of Ace’s total revenue last year. Ace’s revenue for the entire year in 2019 was $6.1 billion.
Net income was $138.9 million for the second quarter of 2020, growth of 158 percent from the same period in 2019. AceHardware.com sales were up nearly 500 percent in the quarter.
U.S. same-store sales grew 35.3 percent during the second quarter of 2020, reflecting a 14.4 percent increase in same-store transactions and an 18.2 percent increase in average ticket.
According to Ace Hardware, Ace stores in the U.S. benefited from increased DIY activities by consumers sheltering in place, a shift in discretionary spending from travel and entertainment into home improvement, consumers moving their purchases online and shoppers consolidating their store visits in order to limit potential COVID-19 exposure.
“Same-store sales growth of 35.3 percent is impressive, a 493 percent increase in our digital business is incredible, but what I’m most pleased and impressed with is the degree to which the Ace team delivered on our highest priority of protecting our people and serving our neighbors,” says John Venhuizen, president and CEO. “The second quarter of 2020 was arguably the most difficult, unusual and yet perhaps rewarding quarter in Ace’s history.”
The co-op has hired more than 900 additional warehouse employees and is continuing to hire, according to Venhuizen. Ace Hardware also plans to add more than 1 million square feet of warehouse space in the next year.
“There is certainly both a blessing and a burden in being essential,” Venhuizen says. “Our efforts to support our stores and serve our neighbors have been imperfect during this pandemic, but the sincerity, efficacy and compassion with which it was delivered was exceptional and appreciated.”