Kroger to Partner with Ace Hardware?

The Kroger Co. is reportedly in discussions about forming a partnership with Ace Hardware.

The partnership between the nation’s largest traditional grocer and the retailer-owned hardware store cooperative would create an Ace-branded store-within-a-store concept inside Kroger supermarkets, according to a report by TheStreet.com.

Kristal Howard, Kroger’s head of corporate communications and media relations, told Progressive Grocer the company does not comment on rumor or speculation.

For the past five years, Ace has offered local store owners $150,000 to adopt its model, in which stores of up to 5,000 square feet can be located inside grocery or paint stores.

Cincinnati-based Kroger operates about 2,800 stores under a host of regional banner names across the United States. Oak Brook, Ill.-based Ace operates 5,830 stores nationwide, all independently run by individual co-op owners.