Ace Hardware bought a majority of The Grommet in 2017 and shut it down in 2022

In 2017 Ace Hardware acquired a majority stake in The Grommet, formerly The Daily Grommet, a marketplace specialising in small brands and quirky products, for an undisclosed amount. At the time, the companies said the platform would keep its autonomy and Ace had no plans to interfere with its strategic direction.

In late June 2022 The Grommet emailed customers about a liquidation sale of up to 50% off, and founder Jules Pieri announced the shutdown on LinkedIn. A WARN notice filed in Massachusetts showed 44 people laid off between 30 June and 31 July. Neither Ace nor The Grommet answered Retail Dive's requests for comment.

Pieri wrote that, as CEO, she had 'decided to commit hard' to wholesale growth at Ace and beyond, but that Ace's co-op structure meant each store owner had to be sold on a Grommet programme individually, which was time-consuming and expensive. 'Growth slowed and losses mounted', she said, and customer acquisition through Google and Facebook, without brand-awareness spending, had become 'impossibly pricey'. Pieri had announced in 2020 that she was leaving at Ace's behest.

The Grommet closed with 44 layoffs and a liquidation sale of up to 50% off; Ace's purchase price was never disclosed.

Ace sold Grommet products through independent co-op store owners, each of whom had to be persuaded one by one.

Wholesale was The Grommet's growth strategy when Ace arrived, and Pieri said committing to it was time-consuming and expensive in the co-op setup.

Online customer acquisition through Google and Facebook became very expensive without matching brand-awareness investment.

Grommet displays in Ace stores were small and uncoordinated, a Retail Dive observation, so the physical presence did little to lift the brand.

A retail partner's channel is only as good as its sales process. When a co-op must be sold store by store, the synergy on the slide never reaches the shelf.

The Grommet liquidated its stock and ended operations, with 44 layoffs between 30 June and 31 July 2022. Retail Dive noted that many pure-play e-retailers have struggled to build physical footprints, citing Amazon's closure of its bookstores and 4-star shops.