Retailer Peavey Industries LP announced Thursday it is ending its relationship with ACE Hardware International on December 31, marking the end of the ACE Canada banner under Peavey Industries LP.
“This decision underscores the growth trajectory that ACE Canada has experienced, evolving from Peavey Industries LP’s acquisition of the ACE Canada master license from Lowe’s in 2020,” said Peavey in a statement.
This period has been filled with shared aspirations for growth and a steadfast commitment to supporting local Canadian-owned retail. Over the past few years, the retail landscape has faced numerous challenges, including the global pandemic, supply chain disruptions, inflation-induced consumer behaviour changes, and increased operational costs, particularly in smaller, remote markets.
“These factors have prompted a strategic reevaluation by Peavey Industries LP leading to the decision to end our relationship with Ace Hardware International.”
Peavey said it is incredibly proud of the accomplishments achieved in partnership with employees, dealers, vendors, and industry partners.
“This decision reflects a broader necessity to adapt to the evolving retail environment, ensuring continued support for future growth and stability. We express our deepest gratitude to everyone who has been part of the ACE Canada story. Your dedication, resilience, and commitment to excellence have significantly contributed to Canadian retail.
“As we move forward, Peavey Industries LP is committed to supporting our stakeholders. We pledge to maintain open communication and provide assistance and guidance to all affected parties. This moment is also an opportunity to reflect on the importance of supporting Canadian retail, particularly the small retailers and local communities that are the backbone of our economy. Peavey Industries LP remains dedicated to fostering a vibrant, diverse, and sustainable retail landscape in Canada.”
Peavey Mart is a farm and ranch retail banner in Canada offering a unique selection of agriculture, farm and ranch, pet, work wear, lawn and garden, hardware and homesteading supplies for those who enjoy a down-to-earth rural lifestyle. It is 100 per cent Canadian and employee owned.
It has 90 stores across Canada from British Columbia to Nova Scotia ranging in size from 10,000-48,000 square feet.
In March 2020, Peavey Industries announced the acquisition of Ace Canada to its retail family.
At the time, the Ace Canada brand consisted of 107 stores under Ace Hardware, Ace Country & Garden or Ace Building Centre banners.
“Ace Canada is a natural extension to Peavey Industries for a number of reasons: we relate strongly to their dedication to ‘local and loyal’, we appreciate their commitment to providing value to customers and we mirror their devotion to excellence in customer service. Also, it is a great opportunity for us to serve new markets with the addition of this great brand,” said Doug Anderson, President and CEO of Peavey Industries.
Currently, 95 Ace Hardware Canada locations are operated under the Peavey Industries umbrella – 92 Ace Canada dealers and three corporate Ace Canada locations owned by Peavey.
The corporate-owned locations will be converted to Peavey’s MainStreet Hardware brand, said Jest Sidloski, VP Marketing & Customer Experience, Peavey Industries LP.
No new Ace Canada locations are slated to open in 2024.
A new Peavey Mart location in Steinbach, Manitoba opened in March 2024, but Sidloski said there are no further plans to open more Peavey Mart stores this year.
The Peavey Industries LP home office is located in Red Deer, Alberta and includes 180,000 square feet of distribution centre space.
The company’s roots go back to 1967 when it started as National Farmway, a chain of “super farm markets” whose first location opened in Dawson Creek, BC.
By 1975, the chain became known as Peavey Mart, a subsidiary of Peavey Company of Minneapolis.
In 1984, the company returned to Canadian ownership.
In 2017, Peavey Industries LP acquired the TSC Stores banner, based in London, Ontario with stores operating in Ontario and Manitoba.
In spring of 2021, the final conversion of all TSC Stores to Peavey Mart took place.
According to its website, Ace Hardware has over 5,000 stores around the world with the majority of those stores independently owned and operated by local entrepreneurs.
“Ace stores come in all sizes and shapes based on the needs of each individual neighborhood. We have small, urban stores, large rural stores and everything in between. Ace stores offer a wide variety of paint, lawn and garden, tools, local niche services and virtually anything you’ll ever need to fix, repair and maintain your home,” it said.
“Founded in 1924 by a small group of Chicago hardware store owners, Ace changed the retail landscape by allowing individual stores to purchase merchandise in bulk to save money and buy at the lowest possible price. This partnership enabled even the smaller stores to compete effectively at retail despite larger stores in their market. And to this very day, Ace Hardware Corporation is still owned solely and exclusively by the local Ace retail entrepreneurs.”
So what does this mean for the Ace Hardware stores owned by Peavey Mart? Will they be rebranded?