2021 Higher Ground Playbook

What Is Higher Ground?

Higher Ground is Ace’s long-term Retail Growth Strategy, lasting from 2020–2024 and taking us through our 100th anniversary. Ace’s continued growth over the next 100 years will come from More and Better Stores, improving the performance of those in existence and opening up more stores to serve our communities.

Pinnacle Performance Retailing (Better Stores) Improve store performance by utilizing prescriptive, store-specific growth plans and Higher Ground performance drivers. With a new, stronger playbook and thousands of retailers committed to growth, we can achieve retail revenue of >$20 billion by 2024. Here is how it works… 3 performance levels: •  Visionary – A commitment to growth and desire to climb. •  Platinum – Achieving the first-tier store performance level (the climb has begun). •  Pinnacle – The top store performance level (the view is best from here). Each level is achieved by hitting 7 of 9 performance drivers. The targets increase between Platinum and Pinnacle and require stronger performance at retail. Pinnacle performance is achieved by hitting a minimum of 7 of 9 Pinnacle targets. Platinum performance is achieved by hitting a minimum of 7 of 9 Platinum targets. (Higher Ground performance drivers and targets on the following page) 8/18/80 – The Alternate Path to Pinnacle Any store achieving both strong financial performance and high customer satisfaction will be recognized as a Pinnacle-performing retailer by reaching or exceeding the following three targets: 8% Earnings Before Interest & Taxes (EBIT) 18% Pre-Tax Return on Equity (ROE) 80% Overall Customer Satisfaction (OSAT)

Accelerate Store Growth (More Stores)

Since the launch of 20/20 Vision in 2013, Ace retailers have opened 408 branch stores. For the first time in Ace history, multi-store retailers make up the majority of Ace owners. Our goal is to open 800 more stores over the next five years. For those who have a vision to open additional stores, we have the tools and resources to help you grow. Getting Started: • Retail investments exist that include inventory incentives and loans to open a new store. • T he Ace Corporate Support Team will assist every step of the way, including application, operational support, marketing and training. • Contact your District Manager or Territory Representative about your interest in opening a new location.

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