CHARLES: AS YOU KNOW, THE RETAIL
ICE AGE IS A THEM A COVERED
ON -- THREE COVERED ON "VARNEY &
COMPANY" FOR A LONG TIME, BUT
ACE HARDWARE IS THRIVING.
JOINING US NOW, CANE CALAMARI,
CANE, FIRST OF ALL, YOUR RETAIL
BUSINESS CONTINUES THE GROW, SO
WHAT'S THE SECRET?
>> YEAH, GOOD MORNING, CHARLES,
AND THANKS FOR HAVING ME ON.
WE GET THAT QUESTION QUITE A
BIT, THE QUESTION IS HOW IS ACE
HARDWARE SUCCEEDING WHILE THE
RETAIL LANDSCAPE'S MOVING IN THE
OTHER DIRECTION.
IT'S NOT FOR LACK OF
COMPETITION.
OBVIOUSLY, WE'VE GOT HOME DEPOT,
LOWE'S, WALMART, AMAZON, CLEARY
STRONG COMPETITORS.
BUT I WOULD SAY WHEN WE LOOK AT
OUR BUSINESS, THERE'S A COUPLE
DIFFERENT THINGS THAT MAKE US
SUCCESSFUL.
OUR TRACK RECORD HAS BEEN
STRONG.
WE'VE HAD RECORD SALES AND
PROFITS FOR FIVE OF SIX YEARS,
OUR SAME-STOREç TRANSACTIONS AND
SALES ARE MOVING IN THE RIGHT
DIRECTION.
WE'RE GOING TO OPEN 160 STORES
THIS YEAR, AND THERE'S NOT A LOT
OF RETAILERS THAT ARE OUT THERE
DOING THAT.
AND LASTLY AND MOST IMPORTANTLY
IS OUR ASSOCIATES AND THE OWNERS
ARE LOOKING TO SEE IF WE CAN WIN
OUR 12TH J.D. POWER AWARD IN THE
HOME IMPROVEMENT INDUSTRY,
SOMETHING WE TAKE GREAT PRIDE
IN.
AND IF YOU ASK, LIKE, WELL, HOW
ARE WE DOING THAT, I'LL GIVE YOU
JUST TWO QUICK THINGS ON THAT.
CHARLES: RIGHT.
>> I THINK THE INDEPENDENT
OWNERS, THE FACT THAT OUR STORES
ARE INDEPENDENTLY OWNED AND
OPERATED AND THE FACT THAT OUR
OPENERS LIVE IN THE COMMUNITIES
THEY SERVE, WHEN YOU'RE SERVING
YOUR NEIGHBORS, GO TO CHURCH
WITH YOUR CUSTOMERS, IT REALLY
MAKES A DIFFERENCE.
AND I WON'T GO THROUGH ALL OF
THEM, BUT OUR STRATEGY IS
WORKING, AND OUR STRATEGY IS
THIS: WE ARE RABID ABOUT
DELIVERING SERVICE, CONVENIENCE
AND QUALITY.
IN MORE THAN 4500 COMMUNITIES
ACROSS THE UNITED STATES.
CHARLES: RIGHT.
WELL, STEVE FORBES IS WITH US,
AND I REMEMBER, STEVE, WHEN HOME
DEPOT WAS REALLY BLOSSOMING AND,
YOU KNOW, THE STORY WAS THEY'RE
GOING TO PUT ALL OF THESE -- ACE
WAS SUPPOSE BE TO BE A VICTIM OF
ALL THIS.
AND NOW WE'RE SEEING
PARTICULARLY THIS YEAR IN THE
MARKET WHERE SOME OF THESE
RETAILERS HAVE FIGURED IT OUT.
AND ISN'T THAT THE ESSENCE OF
COMPETITION?
IS.
>> IT IS.
AND I'D LOVE TO HEAR SOME
STORIES ABOUT THE KIND OF
SERVICE THEY PROVIDE.
PEOPLE LIKE SERVICE.
AND ALSO I THINK MAYBE WITHç
HARDWARE THERE'S -- PEOPLE LIKE
TO FEEL THINGS.
STUFF, BUT IT'S FUN TO GO IN AND
FEEL THE STUFF.
CHARLES: ON THAT NOTE, KANE, MY
WIFE GOES TO THE HARDWARE
STORES, SHE'S GREAT AT IT, I'M
NOT.
BUT SHE COMPLAINS ABOUT CUSTOMER
SERVICE, ABOUT THE PEOPLE WHO
WORK AT THOSE OTHER STORES,
THOSE BIG BOXERS, THEY DON'T
KNOW WHERE ANYTHING IS, AND
OFTEN THEY DON'T HAVE IT AFTER
THEY'VE TOLD HER THEY DID.
SO I BELIEVE THAT PERSONAL
SERVICE IS SO IMPORTANT, AND
PEOPLE ARE ARE WILLING TO PAY FR
IT.
CONGRATLATIONS ON YOUR SUCCESS.
NOW AS A RESULT, YOU GUYS ARE
DOING A LOT OF PHILANTHROPIC
THINGS, I KNOW ACE HARDWARE
MAKING A MULTIMILLION DOLLAR,
YOU KNOW DOING A MULTIMILLION
DOLLAR THING FOR CHILDREN.
TELL US ABOUT THAT, PLEASE.
>> YEAH, THAT'S SOMETHING OUR
COMPANY'S BEEN INVOLVED WITH
CHILDREN'S MIRACLE NETWORK
HOSPITALS FOR 26 YEARS.
AND DURING THAT 26 YEARS, OUR
LOCAL STORES ALL ACROSS THE
COUNTRY HAVE BEEN RAISING MONEY
FOR CHILDREN'S HOSPITALS, 170 OF
THEM.
SO LOCAL MONEY RAISED GOES TO
LOCAL HOSPITALS.
AND WE'VE RAISED ABOUT $93
MILLION.
AND SO WHAT HAPPENED A FEW WEEKS
AGO, THE LOCAL HOSPITAL HERE IN
CHICAGO, WHICH IS A WORLD CLASS
PEDIATRIC HOSPITAL, IT'S THE ANN
AND ROBERT H. LURRY CHILDREN'S
HOSPITAL IN CHICAGO, THEY CAME
TO USç AND SAID THEY HAVE A NEW
CAMPAIGN CALLED FOR EVERY CHILD.
AND THEY SAID WE'D LIKE YOU TO
BE THAT INITIAL CORPORATE
SPONSOR SO WE CAN KICK START
THIS CAMPAIGN THAT'S GOING TO
RAISE HUNDREDS OF MILLIONS OF
DOLLARS IN THE CHICAGO
COMMUNITY.
SO WE WENT TO THE 150 STORES IN
THE CHICAGO AREA AND SAID, HEY,
WHY DON'T WE DO THIS.
DO YOU THINK WE SHOULD DO THIS.
AND OUR LOCAL OWNERS WHO ARE
JUST PASSIONATE ABOUT THEIR
BUSINESS AND ABOUT HELPING THE
LOCAL HOSPITAL SAID, YES.
SO THE ENTIRE COMPANY IS
SWELLING WITH PRIDE BECAUSE LAST
WEEK WE WERE ABLE TO ANNOUNCE A
$10 MILLION GIFT TO THE
CHILDREN'S HOSPITAL RIGHT HERE
IN CHICAGO THAT'S GOING TO HELP
LOTS AND LOTS OF KIDS AND LOTS
AND LOTS OF FAMILIES.