Ace Hardware Corp. reported record third-quarter 2020 revenues, showing the ongoing growth of same-store and online sales during the COVID-19 pandemic.
The growth in the third quarter follows a very strong second quarter, which was strongly shaped by consumer’s pandemic shopping.
The co-op’s third-quarter revenues were $2 billion, an increase of or 30.7 percent from the third quarter of 2019.
Net income was $98.7 million for the third quarter of 2020, an increase of $38.2 million from the third quarter of 2019.
“A 221 percent increase in our digital business and same-store sales growth of 28.9 percent fueled record revenue and earnings in an environment that continues to be very difficult and demanding for both our customers and our associates,” says president and CEO John Venhuizen. “I want to genuinely thank the Ace team for their gutsy performance, their servant hearts and their exceptional fulfillment of their essential calling.”
The 28.9 percent increase in U.S. retail same-store-sales during the third quarter of 2020 was the result of a 12.3 percent increase in same-store transactions and a 14.8 percent increase in average ticket.
The heightened importance of both convenience and safety, coupled with the shift in consumer discretionary spending from sectors such as travel and entertainment into home preservation, have distorted demand and driven much of the growth within Ace stores in the U.S. during the COVID-19 pandemic.
Total retail revenues for the quarter were $186.3 million, an increase of 47.5 percent, as compared to the prior year third quarter. Retail revenues from Ace Retail Holdings were $179.8 million in the third quarter of 2020, an increase of 48.6 percent, from the third quarter of 2019. Ace Retail Holdings consists of the Westlake Ace Hardware and Great Lakes Ace Hardware chains.
Westlake Ace saw a 28.3 percent increase in same-store-sales while Great Lakes Ace chain grew same-store-sales by 40.5 percent in the quarter.