Ace Hardware to open new distribution facility
Ace Hardware Corp. is expanding its supply chain network in response to company growth.
The world's largest retailer-owned hardware cooperative plans to open a new retail support center (RSC) in Kansas City, Mo. The new facility, spanning approximately 1.5 million square feet, is projected to be fully operational in 2025, and is expected to provide employment opportunities to over 350 people.
Ace Hardware says it is building the new facility to balance its current distribution network and meet the needs of its growing business. In the last 10 years, Ace Hardware has increased its retail sales by $12 billion, and also experienced 11 consecutive years of new domestic store growth, resulting in the opening of 850 new stores in the past five years.
[Read more: Ace Hardware to open more than 170 stores in 2022]
The company expects the new Kansas City facility will help it keep pace with Construction is expected to begin in the second quarter of 2023, with projected completion in mid-2025. Ace Hardware anticipates that this project will generate an estimated 100 construction jobs to the local Kansas City community.
"We look forward to construction of the new Retail Support Center in Kansas City, which will be a critical part of Ace Hardware's robust supply chain," said Lori Bossmann, executive VP, chief supply chain officer for Ace Hardware Corp. "This new facility will allow Ace to accommodate its recent growth and sales volume, and it will prepare our company for future business opportunities. By strengthening our presence in the Midwest, Ace will be better positioned to fulfill deliveries more frequently, ensuring consistent service levels as new stores are opening within our network."
"The addition of this RSC ensures that we have strategically positioned facilities aligned with our stores," said Jake O'Neal, corporate VP, retail support, Ace Hardware Corp. "It also enables us to maintain balanced service areas, ensuring the prompt delivery of goods to our stores and providing our retailers with a competitive advantage in meeting their customers' needs. During critical events such as seasonal flooding, natural disasters, and the pandemic, Ace's robust distribution network has served as a lifeline for the communities we proudly serve."
Ace Hardware is the largest retailer-owned hardware cooperative in the world with over 5,700 locally owned and operated hardware stores in approximately 60 countries. Headquartered in Oak Brook, Ill., Ace and its subsidiaries operate a network of distribution centers in the U.S. and have distribution capabilities in Ningbo, China, and Santa Catarina, Mexico.