🔒Inside Aubuchon’s rapid growth

W.E. Aubuchon Co. has been operating for 118 years, and the Westminster-headquartered operator of small hardware supply stores has major plans for the next generation.

Helmed by fourth-generation leader Will Aubuchon IV since 2015, Aubuchon has adjusted to evolving market forces through changes in business tactics and new partnerships, undergoing an ambitious expansion effort seeking to triple the company’s size in time for its 125th anniversary in 2033, even as community-focused hardware stores succumb to Amazon, Home Depot, and other less personable options. The company has acquired 25 locations since September 2023, said Chief Growth Officer Josiah Gates, entering three new states in the past three years in an effort to diversify its geography. In addition to expanding via purchases, Aubuchon is engaged in a vigorous campaign of new store openings and enhancements to its existing location on a breakneck pace, which sees it celebrate a new store remodeling on an average of once every 11 days, said Will Aubuchon. “It’s mind boggling,” he said. “Never, ever in our history would we think we'd be doing that. This is more than just putting up a few balloons. It’s new floors, new fixtures, new layouts. It's a lot of effort. The team is working incredibly hard.” Aubuchon’s growth comes as the number of hardware stores in the county has declined 3.9% in the past five years, according to the North American Hardware and Paint Association.

Local touch

With about 1,500 employees, Aubuchon Hardware is the largest family-owned business in Central Massachusetts, according to data provided to the WBJ Research Department. With 136 stores across 11 states, Aubuchon's size represents a significant growth since its beginnings as a single Fitchburg hardware store, purchased in 1908 by the original William Aubuchon, a French-Canadian immigrant. The company claims to be the oldest family-owned hardware chain in the country. “They're on Main Street and in town centers, and those traditional hardware stores play an important role in our communities,” said Roy Nascimento, president & CEO at North Central Massachusetts Chamber of Commerce. “These are small businesses that serve residents and contribute back into the local economy. Their business model really runs counter to retailing today. A lot of retailing is big box stores and online commerce, and they have competed very well with them.” Will Aubuchon estimates his company has total revenue equal to about five Home Depot stores. In the age of Amazon delivery, Aubuchon’s local connections aren’t just a major part of the company’s survival, it's the sole reason the company still exists, he said. “The only thing that's left at this point is how we serve. It’s all we got, in the aisle with the customer or with the neighbor,” he said. “Honestly, if one day human beings choose to no longer value that, we're kind of screwed.”

ACE expansion

About 3% of family businesses operate into the fourth generation or beyond, according to the Family Business Association. Since taking the helm 11 years ago, Will Aubuchon has had to make significant changes to the company’s business model to ensure its survival. The company operated under a self-distribution model for most of its existence until 2017, when it closed its warehouse. The switch to external distribution expanded the ability to grow beyond a reasonable drive from its warehouse and offered the company new ways to customize store layouts and product offerings, Aubuchon said. “There was no way to customize the product assortment, store by store, which is actually a really important thing to do with neighborhood hardware stores,” he said. Aubuchon’s offerings at a particular store are influenced by the local landscape, with some locations selling appliances while others tap into a location’s agricultural roots by selling products like animal feed.

A key factor in Aubuchon’s expansion was its 2023 decision to join ACE Hardware Corp. cooperative, founded in 1924 by a small group of Chicago hardware store owners who banded together to pool buying power. The partnership with ACE has offered a major boost to revenues and a stable source of supply. It helps connect Aubuchon to mom-and-pop operations looking to sell. A total of 24 of the 25 stores purchased since September 2023 have been ACE-branded, Gates said. He meets with ACE every two weeks to discuss the next prospect. “The word is out,” Gates said. “We recently had someone’s capital advisor reach out and ask if we were interested in acquiring stores. We said yes, set up a call, and the next thing we're flying on a plane to go visit.” In addition to Aubuchon Director of Business Development Jean-Marc Aubuchon’s outreach, the company utilizes third-party cold callers to scout for family-owned stores lacking a succession plan, Gates said. Already a common sight in New England, Aubuchon is eyeing the Mid-Atlantic market and eventually into the Central Time zone.

Rite Aids & empty retail opportunities

Aubuchon is on the hunt for new locations, to relocate existing stores or to set up shop in new communities. The company has been presented with a unique opportunity with the 2025 demise of Rite Aid, leading to at least 1,250 vacant retail spaces across the country. Gates said former Rite Aids are generally near good intersections and are around 10,000-12,000 square feet, perfect for the footprint of a typical Aubuchon store.

Downsizing by Walgreens and the bankruptcy of Party City are presenting new storefront possibilities, too, he said. “As retailers, it’s creating opportunities in the hardware channel for some great sites,” he said. Aubuchon’s expansions aim to have a soft touch, retaining existing employees and treating their years of service with their respective companies as if they had happened at Aubuchon when it comes to benefits, Will Aubuchon said. The company often retains existing business names, operating stores under a variety of brands. Aubuchon’s rapid growth plans are a bet, but he is confident it will pay off in the long run. “Nothing's guaranteed in life, but every acquisition helps the brand, that store, and that team of people,” he said. Aubuchon’s growth efforts came full circle with the remodeling of store #1 in Fitchburg, completed in July. “They built out this network through acquisition of local hardware stores and are competing very well, providing a needed service to the community,” Nascimento said. “They are just a great company. We're really proud of them.” Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.