Are Ace Hardware and True Value the Same in 2024? A Deep Dive
With over 5,000 stores worldwide, Ace Hardware ranks as one of the largest home improvement retailers globally. Given its similar offerings, many DIYers wonder whether Ace Hardware is the same as True Value, or if the brands have key differences.
As a home improvement expert, I‘ve taken an in-depth look at how Ace Hardware and True Value compare in 2024 across locations, products, business models, and more. Here‘s a comprehensive guide on what makes each brand unique.
At a Glance: How Ace and True Value Compare
Before diving into the details, here‘s a high-level overview of how Ace Hardware and True Value stack up across key metrics:
| Metric | Ace Hardware | True Value |
|---|---|---|
| Global store count | Over 5,300 | Around 4,000 |
| U.S. store count | Approx. 4,500 | Over 3,500 |
| Ownership | Local entrepreneurs + SM Group of Companies | ACON Investments (private equity) |
| Franchise fee | $5,000 | $9,500 |
| Startup costs | $250,000-$1.6 million | $45,000-$990,000 |
While the two brands share cooperative business models and similar products, key differences emerge in their store counts, ownership structures, and costs for prospective franchisees.
Diving Into the Store Networks
When it comes to brick-and-mortar presence, Ace Hardware has a substantially larger retail footprint overall:
Ace Hardware has over 5,300 stores globally across approximately 65 countries.
Comparatively, True Value has around 4,000 retail stores worldwide.
Looking specifically at the U.S. market, Ace Hardware maintains a network of approximately 4,500 stores coast to coast.
- This includes concentrations on the West Coast and in California, which is home to over 600 Ace Hardware stores alone.
Meanwhile, True Value has over 3,500 U.S. locations in its domestic network.
- True Value has a particularly strong presence on the East Coast and in New York, which has nearly 300 stores.
So while both brands have expansive store counts domestically, Ace Hardware edges out True Value in terms of total U.S. locations.
Comparing the Product Offerings
When you walk into an Ace Hardware or True Value, you‘ll find many familiar home improvement categories:
- Hand tools
- Power tools
- Lawn and garden supplies
- Outdoor living
- Plumbing
- Electrical
- Paint and decor
However, a closer look reveals some differences in product assortment and focus:
Ace Hardware tends to offer a wider selection of major national brands for tools and hardware, including DeWalt, Craftsman, Milwaukee, and Stihl. This likely stems from their larger size and scale.
True Value differentiates itself by carrying pet supplies, pet food, and livestock products – categories not offered by Ace. This represents a niche focus for True Value.
Based on store visits, I‘ve found Ace Hardware typically devotes more floor space to tools and hardware while True Value allocates more space to pet supplies. However, both chains aim to meet core needs for DIYers.
Cooperative Business Models and Ownership
Ace Hardware and True Value are both retail cooperatives, meaning local store owners collectively own the company brands:
At Ace Hardware, ownership is shared between hundreds of local entrepreneurs along with the SM Group of Companies, which acquired a majority stake in 2022.
True Value was purchased in 2018 by private equity firm ACON Investments and is no longer retailer-owned. This transfer of ownership enabled a significant expansion of True Value‘s wholesale offerings.
As cooperatives, both chains tout their commitments to personalized service and community focus. However, Ace Hardware remains primarily owned by local business operators while True Value ownership now sits externally.
Costs and Fees for Prospective Owners
For retailers looking to join the brands, here is how the investment compares:
Ace Hardware requires new owners to pay $5,000 in affiliation fees upfront. Total startup investment ranges from $250,000 to $1.6 million depending on location and size.
True Value has higher affiliation fees at $9,500. However, total initial investment is estimated between $45,000 and $990,000 – generally lower than an Ace Hardware startup.
Both chains charge ongoing royalties, marketing fees, and membership dues. True Value tends to levy higher monthly fees tied directly to sales.
So while Ace Hardware has lower affiliation costs, opening a True Value ultimately requires less capital in most cases. This may offer a more accessible entry point for some independent retailers.
The Bottom Line: Key Differences Emerge
While Ace Hardware and True Value share some brand values and offerings, important distinctions emerge in their store counts, focus areas, ownership structures, and costs for prospective owners.
Key takeaways:
Ace Hardware has more global and U.S. locations, while True Value concentrates more stores regionally.
Product offerings overlap significantly, though Ace prioritizes tools while True Values offers unique pet supplies.
Both utilize cooperative models, but Ace Hardware maintains retailer ownership while True Value is externally held.
True Value offers lower startup costs for new franchisees.
So in summary – no, Ace Hardware and True Value are not the same. But they both provide friendly neighborhood shopping suited for hands-on homeowners.
