Richard Hesse founded Ace Hardware Corporation in Chicago in the early 1920s. Operating from a hardware store on Clark Street in Chicago, Hesse found much was wanting in the traditional way of buying merchandise in those days. Buying from a jobber, or middleman, simply drove up the price on every hardware item and cut into the retailer’s profits.

One day a Greek peddler selling Mediterranean sponges pointed out to Hesse that he could realize considerable savings by purchasing sponges by the bale, rather than individually. Not having the capability of buying that many sponges, however, Hesse called several area retailers to ask if they would be interested in splitting the bale

They were, and they did.

Having germinated the seeds of franchise buying, Hesse began buying other merchandise in bulk to save money, establishing the Ace concept of buying at the lowest possible cost. This enabled even the smaller stores to compete effectively at retail even with much larger stores in their market – a concept still valid today, more than three-quarters of a century later.

The company began as a privately-owned group, although it utilized the basic principles of a franchise by using the Ace name as a key element in the program. The Ace name was chosen on a whim when a truck with “Ace Laundry” painted on the side drove by during a meeting. Hesse also realized that the Ace name would be near the front of the telephone book, and it had many positive connotations.

In 1928, the company was incorporated as Ace Stores, Inc.

Hesse also introduced retailer conventions. These allowed retailers to meet in one common marketplace and see all of the national products and promotions available to them. Today conventions remain an integral part of the basic activities Ace offers its retailer-owners.

In 1968, Ace began to expand into the international market, opening a store in Guam.

In the mid-80s, Ace began manufacturing its own paint. A state-of-the-art paint plant produces a variety of solvent-based and latex paints.

At the turn of the century, Ace announced an expanded growth strategy designed to build the retailers’ business and deliver a consistent, helpful experience with every customer on the planet.