Does Lowe’s Own Ace Hardware in 2024? Surprising Insights on Two Iconic Brands
As an expert with over a decade of experience analyzing retail trends, I‘m often asked whether hardware giants Lowe’s and Ace Hardware have any connection. Specifically, "Does Lowe‘s own Ace Hardware?"
While these two brands dominate the home improvement market, they actually operate as completely separate businesses. In this in-depth article, I‘ll share key insights on the ownership, history, and strategic positioning of Lowe‘s and Ace Hardware.
Distinct Origins and Ownership Structures
Lowe‘s and Ace actually have distinctly different origins and ownership models that have shaped their brand identities.
Ace Hardware started in 1924 as Ace Stores, founded by four independent retailers: Richard Hesse, E. Gunnard Lindquist, Frank Burke, and Oscar Fisher. These founders combined their stores into a purchasing cooperative, allowing them to get volume discounts while retaining local ownership.
Today, Ace Hardware still operates as a private cooperative owned by its more than 3,000 independent retailer members. To join, retailers pay a $5,000 franchise fee. However, they maintain autonomy over their regional operations and inventory.
In contrast, Lowe’s began as a family business, started in 1921 in North Carolina by Lucius Smith Lowe. His nephew James Lowe acquired the company and partnered with Carl Buchan to rapidly expand the chain.
Lowe’s became a publicly traded company in 1961 and today has no majority shareholder. The largest current stake of 8.4% is held by The Vanguard Group.
By the Numbers: Store Footprint and Reach
Ace Hardware has taken an aggressive growth strategy, powered by its distributed ownership model. As of 2023, there are over 5,500 Ace Hardware stores across approximately 70 countries.
Comparatively, Lowe’s currently operates just over 2,000 stores, located only in the United States and Canada.
| Lowe‘s | Ace Hardware | |
| Total stores | ~2,200 | ~5,500 |
| Average store size | 112,000 sq ft indoors 32,000 sq ft outdoors | 30,000 sq ft |
| Countries | US and Canada | ~70 countries |
With more than double the number of stores, Ace Hardware has surpassed Lowe’s in overall physical footprint. And Ace continues to expand, with plans to open 170 new US stores in 2024.
However, Lowe’s operates significantly larger format stores. Their 112,000 square foot retail spaces allow them to offer expanded offerings compared to the compact Ace Hardware locations.
Positioning and Pricing Strategies
Lowe’s and Ace have distinctly positioned themselves within the home improvement market.
As a cooperatively owned hardware store, Ace has a community-focused vibe. Their stores feel like smaller, niche shops with knowledgeable staff. This attracts homeowners seeking specialized expertise and services like pipe threading, glass cutting, and key making.
Lowe’s positioning is more value-driven, targeting deal-seeking customers tackling larger renovation projects. Their massive retail spaces house everything from lumber to lighting fixtures.
True to their positioning, Ace Hardware‘s prices tend to be 10-15% higher than Lowe‘s on comparable products. They focus less on discounts and more on service.
Lowe‘s regularly promotes major sales events, especially for appliances, to drive high-volume traffic. This allows them to compete aggressively on price with other big-box retailers.
My Perspective: Complementary Players in Home Improvement
In my view as a retail analyst, Lowe‘s and Ace actually have quite complementary positions in the market.
Ace Hardware excels at convenience, specialty knowledge, and unique offerings tailored to each local community. They will continue to thrive as the trusted neighborhood hardware store.
Meanwhile, Lowe‘s competes well on one-stop big-ticket shopping trips, especially amongst professional contractors and remodelers. Their pricing and inventory scale are hard for smaller players to match.
Rather than directly competing, I see these brands as fulfilling distinct shopper needs that together cover the full spectrum of home improvement activities, from quick repairs to whole-house remodels.
The Bottom Line
While Lowe‘s and Ace Hardware are two of the most recognizable brands in home improvement retail, they operate as fully separate businesses. Key facts:
Ace Hardware is a private cooperative, owned by its member retailers. Lowe‘s is a public corporation.
With over 5,500 stores globally, Ace has a much larger physical footprint than Lowe‘s and its approximately 2,200 stores.
The two chains differentiate themselves on pricing, positioning, services, and store formats.
Both brands have carved out enduring roles as leaders in the hardware sector.
Hopefully this sheds light on the relationship between these iconic chains. Let me know if you have any other home improvement retail questions!
