Ace Hardware’s new partnership with Affirm, which offers pay-over-time options at the point of sale, gives the retailer another way to show its advantages over big-box stores.
As a cooperative, with most of its locations independently owned and operated, Ace has already worked to ensure shoppers enjoy consistent payment options. Now, it can provide Affirm to in-store customers—a more challenging and valuable offering than simply enabling it through e-commerce.
Previously, Ace had partnered with Klarna to provide buy now, pay later (BNPL) services, but those were limited to shoppers using Apple Wallet. Under the new system, any Ace shopper can scan a QR code at checkout, complete a real-time eligibility check, and access payment options for purchases over $50.
Positioning Above the Big Boxes
Hardware is a prime category for BNPL, as these stores often carry high-priced, aspirational items. The partnership between Affirm and Ace will give customers greater flexibility in how they choose to split the cost of goods, making these purchases more accessible.
“This is a great fit since Ace has positioned the brand at a level above the big-box stores,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “In addition to all the name brands in tools, they go upscale in the outdoor category, carrying brands like Green Egg and Weber, which you won’t find at Home Depot or Lowe’s.”
A Consistent Consumer Experience
Ace operates more than 5,200 stores across the U.S., the vast majority of which are independently owned. This means the retailer has to go above and beyond to ensure all locations maintain the same level of service.
“Ace has done a great job of creating a consistent consumer experience around their brand while still allowing franchisees enough flexibility to run their businesses according to their local markets,” Apgar said. “For example, if you look at the Ace website, the item selection is consistent, but prices of items will change when you change the store location.”
Ace also requires franchisees to use its corporate point-of-sale software. While this helps with inventory management and e-commerce pricing at the franchise level, it also ensures a consistent customer experience—particularly with programs such as Ace’s rewards system.
“This common functionality across the stores also enables features like Affirm without too much difficulty,” said Apgar. “When you’re ready to drop some serious cash on that new Green Egg, shop confidently knowing you can make four easy payments.”
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