2021 Higher Ground Playbook

9 PERFORMANCE DRIVER: Acehardware com Fulfillment

Why is it important to offer these accretive services to our customers on acehardware com? A fast and frictionless experience – wherever and whenever – is now a prerequisite to meet the demands of our neighbors. Customers expect convenient fulfillment options like the ones we offer. As our online customers shop your store, these services allow them to see what’s in stock, your local pricing and how quickly they can get the products they need – picked up or delivered. We’ve meshed Ace’s great physical footprint with our digital assets in a way that allows retailers to bring Helpful more seamlessly to their customers. The true power of these three fulfillment options is how they operate together. One enables another, and the greatest impact comes from combining all three into a collection of hyper-convenient services. BOPIS, BODFS and Assembly help retailers sell more product to more customers and make more money.

The Acehardware.com Fulfillment Performance Driver measures a store’s participation in services on acehardware.com that meet consumer demand – Buy Online, Pick Up In Store (BOPIS); Buy Online, Deliver From Store (BODFS); and Assembly.

Active on all three programs on acehardware.com (BOPIS + BODFS + Assembly)

Pinnacle Target

BOPIS Store Results •  More money: >8,600% more e-commerce revenue than those not on the program • More footsteps: >80% of all orders placed on acehardware.com are picked up in store • Incremental sales: >50% of BOPIS orders are fulfilled from RSC

BODFS Store Results •  Higher sales: 198% higher sales than non-BODFS stores •  Higher tickets: Average order value 3.5x higher than the average acehardware.com order, with and 2x higher average profit per order • Reengagement: 53% of Ace Rewards members come back in store post-purchase an average of 5x after their BODFS order and spend >$43 per transaction

Assembly Stores • Higher tickets: Delivery orders with assembly have 4x higher average order value •  More orders: Customers placing orders with Assembly without, go on to place an average of 15% more additional orders post purchase than those who do not choose Assembly • Higher profit: An order with both Assembly & Delivery on it makes, on average, 752% more product margin $ than an average BOPIS order

Sales through June 2019

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