Michael Costello, CEO of Costello’s Ace Hardware, began his career at the age of 13, working weekends with his father Vinnie at the family hardware store in Deer Park.

Vinnie, who founded the company, served as CEO, and led the small company from 1976 until 2016 and oversaw the expansion of the business from a single store to one of the largest family-owned Ace Hardware chains in the country.

Over the years, Michael held many different roles in the company from stock boy all the way up to President and Chief Operations Officer. He was appointed as the company’s CEO in 2016 when Vinnie retired.

Since 2016, Michael has continued the outstanding legacy set by his father of growth and problem-solving. Under Michael’s leadership, the company has grown from 25 locations and $65 Million in sales annually to 40 stores and over $140 Million in sales.

Costello’s Ace Hardware has become one of the largest independently owned Ace Hardware chains in the nation. Costello’s vision is to grow to 75 locations and $250 Million in revenue by 2025 and the company is currently ahead of its goal.

How do you see your business evolving due to the changing times?
We’ve been experiencing change for almost 50 years, but certainly, there has been a rapid acceleration more recently- especially through the pandemic.

Changes in how consumers want to engage with our brand and shop has us embracing an omnichannel transformation. We don’t see this slowing down. We rapidly added various order fulfillment capabilities like in-store and curbside pick-up, drastically increased our fleet of delivery vehicles, and continuously look for additional services our customers are seeking.

Additionally, our marketing strategies continue to evolve. A plan once dominated by printed sale flyers sent to mailboxes is now giving way to a wide range of digital, social, and targeted mail, texts, and emails.

Important to us is the segmentation of the business- the DIY and professional customers we serve, services we provide, and critical product categories. Each has its own unique strategy for growth and success.

Technology will continue to play an important role in the future. There’s no such thing as “no tech” anymore- consumers won’t tolerate it. Smaller independents like Costello’s may not need to be on the cutting edge of technology, but we will have to utilize technology to engage, communicate, and operate more efficiently.

The one aspect of our business that will never change is the importance of our team to our success. The red-vested heroes of Costello’s Ace are our secret sauce, and what differentiates us most from our big box and on-line competitors.

The helpful, friendly, personal service that our frontline associates provide is what keeps our customers emotionally engaged.

What advice would you give other business owners?
Always lead with your values. Focus less on “what you do” and more on “why you do it”. Throughout my years in the business, I’ve seen so much change.

Change in the products and the services consumers want. Change in the demographic, segments, and shopping habits of customers. Change in the people that are seeking to work in our business.

It’s easy to get stuck in your ways and resist change. At Costello’s, we focus on the values that Vinnie built the business on- unbridled enthusiasm for solving problems, building deep, meaningful relationships, being a positive influence in our communities, and a desire to continuously improve and grow.

This allows us to stay open-minded, agile, seek improvement, and change. It also empowers our people, making us a great place to work, and puts our people in a position to consistently deliver for our customers.