Ace rolls out expansion of 'home solutions' concept stores - Problem-Solving Format - targets women, first-time homeowners - Brief Article

Home Channel News, Nov 19, 2001 by Terry C. Evans

OAK BROOK, ILL. -- Less than two years after opening its first two Home Solutions concept stores, Ace Hardware is moving forward with a rollout of the format, which targets do-it-yourselfers -- especially first-time homeowners and women.

The dealer-owned buying cooperative, based here, plans to open nine new Home Solutions stores within the next 18 months, the first in September 2002, followed by two more before the end of that year. Expansion then will ramp up in February 2003, with the remaining six stores set to open at a pace of one each month through the middle of the year.

Five of the new units are slated for the Houston area; the remaining four will be in metro Denver, although specific locations have not yet been identified. Ace executives said they are concentrating on those two regions because they are seen to be growth areas and the residents who live there appear to fit the targeted demographic -- slightly upscale homeowners younger than 35, particularly women with children. By grouping stores in a market, Ace hopes to create more customer awareness of the concept, according to Mike Bodzewski, the coop's vp-marketing, advertising development and company stores.

The first two Home Solutions stores, (originally dubbed Neighborhood Solutions) were in Highlands Ranch, Colo., and Longview, Wash.

"Our stores primarily would attract males 35 and up," said Bodzewski. "The challenge was to come up with something that would be friendly to the male shopper, but also be something where females and the younger people will shop."

To attract those consumers, the stores have play areas for children and a strong focus on educating consumers. Five-foot wide aisles and skylights add a natural brightness, and products are merchandised to emphasize projects.

"There's actually a cutaway house that's built in the store so a store associate can take someone over there and if they don't know how to put in a light switch, the associate can say, 'OK, here's what's behind the wall, these two conduits come down. Here's the box, here's what you need to do,"' Bodzewski said. "There's an area with televisions and we have a supply of how-to videos so people can sit there and watch the video if they so choose."

Bodzewski declined to disclose sales figures for the stores, but said they are "exceeding expectations."