Ace Hardware, the largest hardware store chain in the United States, announced yesterday that it would be buying out True Value, one of its largest competitors. The move comes as a bit of a surprise, as Ace had been lagging behind True Value in recent years in terms of store growth and market share.
However, Ace has been on an aggressive expansion path in recent years, and the purchase of True Value will help them close the gap between themselves and their primary competitor, Lowe’s. In addition, True Value has a strong presence in rural markets, which will complement Ace’s urban and suburban locations.
The two companies have very different strategies when it comes to selling merchandise. True Value is known for its low prices and wide selection, while Ace focuses on providing a more personalized shopping experience with higher-quality items. It remains to be seen how these two approaches will mesh under the same umbrella, but Ace is confident that the acquisition will be a success.
Ace Hardware’s purchase of True Value is a bold move that could pay off handsomely for the company. Only time will tell if this gamble will pay off, but it is certainly an interesting development in the world of home improvement retailing.
