Podcast Summary: The CPG Guys

Episode: DIY Retail Media with Ace Hardware's Molly Hjelm

Hosts: Peter V.S. Bond & Sri Rajagopalan
Guest: Molly Hjelm, Corporate VP & Head of Retail Media, Ace Hardware
Date: August 16, 2025

Overview of Episode Theme

This episode dives into the launch and strategy of Ace Hardware’s new retail media network, led by Molly Hjelm. The conversation explores what makes Ace's approach—rooted in a cooperative structure with fiercely local stores—unique within the DIY retail and retail media spaces. Molly discusses leveraging loyalty data, the decision to launch a comprehensive offering out of the gate, the advantages of being a "late mover" in retail media, tech partnerships, and her vision for how retail media will fuel both local and national brand success at Ace.

Key Discussion Points and Insights

1. Ace Hardware’s Structure and Scale ("Neighborhood" Meet Scale) [07:11]

• Ace is the world’s largest retailer-owned hardware co-operative, with over 5,900 stores across 71 countries (5,100+ in the U.S.).
• Locally owned stores benefit from Ace’s centralized buying power and national branding but maintain control over assortment and marketing, enabling hyperlocal relevance.
• Molly Hjelm: "We are in the business of supporting independent business owners... It really is that that allows us to be both a global brand and have that true authenticity as a hyperlocal retailer." [08:00]

2. Balancing National Scale with Local Relevance [10:18]

• Stores can customize inventory to suit their neighborhood—some may carry lumber, others may offer unique merchandise like women’s hats.
• Localized eCommerce feeds ensure product visibility matches real, local store stock, a logistical challenge but key to local experience.
• Molly: "Our stores can carry...a very diverse assortment. Hats off to our e-commerce team... feeds of products that are localized down to the in-stock of that local store near you." [11:48]

3. Leveraging Loyalty Data for Retail Media [12:16]

• Ace Rewards has 71 million+ members; the loyalty program is central to both in-store and digital engagement.
• Loyalty data powers personalized offers, marketing messages, and enables closed-loop measurement in retail media.
• Molly: "Loyalty card data is the gold standard because it enables you to have that longitudinal view of what people are doing over time." [12:40]
• Builds the backbone of personalization for both traditional marketing and the new Ace Media Network.

4. Full-Funnel Launch—“Late Mover Advantage” [14:27]

• Ace launches its Media Network with a full-funnel portfolio (onsite, offsite, in-store). Decision informed by advancements in tech and market expectations.
• Leverages partnership with Epsilon Retail Media for programmatic, on/off-site, and in-store capabilities from day one.
• Molly: "The tech stack...has evolved so significantly...the fact that we’ll be able to...launch a programmatic in store and on site offering is really just a testament to how much the tech stack in retail media has evolved. That late mover advantage...we’re not homegrowing anything...we're truly leaning into our point of difference, which is the Ace shopper data..." [14:27]

5. Changing Processes Internally for Retail Media [17:20]

• Launch requires process changes—especially aligning with marketing and merchandising teams.
• Strong C-suite buy-in for marketing-driven growth; Ace’s coop model means supporting both local owners and national goals.
• Molly: "We have a C-suite that’s really understanding of and believes in the power of marketing, maybe more so than other retailers..." [17:20]

6. Open Tech and Brand Partner Interoperability [18:50]

• Ace’s network is intentionally open to integration with industry-standard commerce platforms (Flywheel, PacVue): brands/agencies can use their own tools.
• Molly: "Wherever possible it's easier to engage advertisers in their preferred tech stack rather than asking them to push to change their habits." [18:50]
• Lowers friction for partners, makes onboarding simple, leverages brands’ existing best practices.

7. Exclusive Launch Cohort—Careful Brand Curation [21:38]

• Ace is hand-picking an exclusive first cohort of brand partners (top 5–10), focusing on mutual, long-term success.
• Early adopter brands get enhanced focus and toolkit access in exchange for exclusivity during rollout.
• Molly: "It's about growing...with purpose and ensuring that we can fulfill our mission, which is to be helpful to our brands and our retailers by giving them more control over their outcomes with a radical level of accountability." [21:38]

8. Measurement & Performance Reporting [24:26]

• Real-time dashboards will track on-site and off-site media investments and measure impact on sales.
• Ace promises transparency beyond standard ROAS; supports incrementality, new-to-brand, CLV, and granular optimization.
• Molly: "It was incredibly important to me that our advertisers benefit from the best reporting available from day one... In order to earn that next dollar, you have to show that the investment is working for both sides..." [24:26]

9. Retail Media as a Growth Tool for Innovation [27:03]

• For brands, AceMedia isn’t just about ads—it's a way to drive sell-in at local stores by stimulating consumer demand for product innovation.
• Retail media can influence which products local store owners choose to carry.
• Molly: "Retail media looks like a potential avenue to increase the likelihood that your distribution would increase and put a little more control in our vendors hands to drive that awareness." [27:03]

10. Vision for the Future of Ace Media [28:16]

• Expect ongoing expansion of in-store levers and innovations in how local and national brands engage Ace shoppers.
• Focused on learning and codifying best practices specific to Ace’s unique shopper base.
• Molly: "I’m most excited about seeing what this new toolkit is going to do for our brands at Ace...what that best practice is in our environment...to drive business outcomes." [28:16]

Notable Quotes & Memorable Moments

• Molly, on hyperlocal strength and national reach:
  "We have both that balance of having a store in every neighborhood and that ability to be incredibly helpful and immediately convenient, which is what helps us...compete with the biggest box out there." [10:18]

• On leveraging late mover advantage:
  "I see our late mover status actually as a late mover advantage in so many ways...the tech stack and what’s possible...has evolved so significantly." [14:27]

• On open infrastructure:
  "Let’s remove the friction and...take advantage of the expertise and the best practice that’s already known and established in the industry and do that from day one." [20:41]

• On measurement and transparency:
  "I am incredibly passionate about measurement. It’s one of the reasons I love retail media, because it’s one of the things that sets retail media apart from other advertising levers..." [24:26]

• On AceMedia as a lever for innovation distribution:
  "It can be a place for them to potentially influence our retailers to accept their innovation through the demand that is generated by product being shipped to their stores..." [27:03]

Timestamps for Important Segments

• Intro & Ace Hardware background: [05:54]
• Ace’s co-op model and local relevance: [07:11]
• eCommerce and in-store synergy: [09:13]
• Loyalty data and personalization: [12:16]
• Full-funnel/late mover approach: [14:27]
• Open tech/integration with partner platforms: [18:50]
• Launch plan/exclusive cohort strategy: [21:38]
• Measurement and reporting: [24:26]
• Innovation & influence on distribution: [27:03]
• Vision for future expansion: [28:16]

Episode Tone and Style

Friendly, industry-savvy, and energetic. The hosts banter and joke, but ask probing, detailed questions. Molly’s responses are clear, knowledgeable, and candid, emphasizing transparency, partnership, and customer-centricity. The tone is collaborative and optimistic about retail media’s future.

Conclusion

This episode offers a detailed, behind-the-scenes look at how Ace Hardware—leveraging its unique co-op structure and robust loyalty data—is launching a full-funnel retail media network designed for both local impact and national scalability. Listeners walk away with a blueprint for building a modern retail media offering, the importance of learning from industry evolution, and the power of true partnership between retailers, brands, and technology platforms.