A message from the Chairman of the Board

Brett Stephenson, Chairman

Dear Ace Shareholders,

There are so many things that the Ace team should be proud of as we reflect on 2020 — record sales and profits, tireless work in serving our local communities and rising to the tremendous challenges we faced due to a global pandemic. The heroic performance by so many at Ace is impossible to capture on a spreadsheet, but those actions will forever be etched in my mind and our brand.

In the face of adversity, what we achieved together is truly unprecedented. John shared the incredibly impressive list of statistics that we experienced in 2020, including these numbers that each exceed the results of the past 20 years combined:

• $2.5 billion in same-store incremental sales
• Incremental same-store transactions grew by 32.3 million

In 2020, we also saw the way people shop change forever. We served more than 6 million new customers in 2020. The Ace team adapted quickly and creatively to serve customers in new ways — through In-Store Pickup; Buy Online, Deliver From Store; and Curbside Pickup. Yet, throughout this impressive growth and change, we have maintained our focus on serving our neighbors with excellence. Nearly 83% of our customers gave us a 5 out of 5 on their in-store experience, which is an all-time high!

The Ace team adapted quickly and creatively to serve customers in new ways — through In-Store Pickup; Buy Online, Deliver From Store; and Curbside Pickup.”

And thanks to your help and generosity, the Ace Foundation raised an astounding $18.7 million overall in 2020 (that’s $2 million more than 2019!). This includes funds for Children’s Miracle Network (CMN) Hospitals, the American Red Cross, Habitat for Humanity, and our own Ace Helpful Fund, which assisted more than 100 members of the Ace family throughout the year.

We also received several awards in 2020 that recognized everything from Ace’s outstanding growth to the engagement and talent of our employees. Here are just a few highlights from the past year that illustrate Ace’s significance in the hardware and retail industry:

• Ace ranked "Highest in Customer Satisfaction among Home Improvement Retail Stores," according to J.D. Power, achieving this ranking 13 out of the last 14 years
• Ace ranked No. 5 on the Franchise Times Top 200 list
• Ace Hardware Ranked Among Forbes’ Most Reputable Companies in America AND Best Employers for 2020

On behalf of the entire Board, we appreciate your simply outstanding efforts in 2020 and your continued commitment to be the best, most helpful hardware stores on the planet. I am very optimistic about where we are headed in 2021. I am honored and humbly thank you for your incredible service and efforts as we work to Give No Ground.

Brett Stephenson
Chairman of the Board