> 

> The condensed consolidated interim period financial statements 
> presented herein do not include all of the information and 
> disclosures required in annual financial statements and have not 
> been audited, as permitted by the rules and regulations of the 
> Securities and Exchange Commission. The condensed consolidated 
> interim period financial statements should be read in conjunction 
> with the annual financial statements included in the Ace Hardware 
> Corporation Annual Report on Form 10-K as filed with the 
> Securities and Exchange Commission on March 22, 2002. In the opinion 
> of management, these financial statements have been prepared in 
> conformity with accounting principles generally accepted in the 
> United States of America and reflect all adjustments necessary for 
> a fair statement of the results of operations and cash flows for 
> the interim periods ended March 30, 2002 and March 31, 2001 and of 
> the Company's financial position as of March 30, 2002. All such 
> adjustments are of a normal recurring nature. The results of 
> operations for the thirteen week periods ended March 30, 2002 and 
> March 31, 2001 are not necessarily indicative of the results of 
> operations for a full year.

2) Patronage Dividends

> The Company operates as a cooperative organization and will pay 
> patronage dividends to consenting member dealers based on the earnings 
> derived from business done with such dealers.  It has been the practice 
> of the Company to distribute substantially all patronage sourced 
> earnings in the form of patronage dividends. 
> Net earnings and patronage dividends will normally be similar since 
> patronage sourced net earnings is paid to consenting member dealers.  
> International dealers signed under a Retail Merchant Agreement are not 
> eligible for patronage dividends and related earnings or losses are not 
> included in patronage sourced earnings.

> Certain financial statement reclassifications have been made to prior year and prior quarter amounts to conform to comparable classifications followed in 2002. 
> During 2002, the Company reclassified as sales and 
>  cost of sales certain
> shipping and handling costs that had previously been presented on a net basis
> within warehouse and distribution expenses.

> The Company is principally engaged as a wholesaler of hardware and 
> related products and manufactures paint products.  The Company 
> identifies segments based on management responsibility and the nature of the business activities of each component of the Company. The Company measures segment earnings as operating earnings including an allocation for administrative expenses, interest expense and income taxes. The net sales from external customers included in the other category are primarily generated from company-owned retail locations.  Information regarding the identified segments and the related reconciliation to consolidated information is as follows:

Thirteen Weeks EndedMarch 30, 2002EliminatedPaint            IntersegmentWholesaleManufacturingOtherActivitiesConsolidated
Net Sales from External Customers  $ 690,920  $      5,613  $10,634 $      -    $   707,167
Intersegment Sales                     4,225        30,760       -    (34,985)           -
Segment Earnings (Loss)                8,012         3,957   (3,709)        -         8,260Thirteen Weeks EndedMarch 30, 2002EliminatedPaint            IntersegmentWholesaleManufacturingOtherActivitiesConsolidated
Net Sales from External Customers  $ 657,261  $      4,152  $11,411 $      -    $   672,826
Intersegment Sales                     4,221        23,919       -    (28,140)           -
Segment Earnings (Loss)                3,999         2,362   (1,325)        -         5,036

PART II. OTHER INFORMATION
Item 1.   Legal Proceedings
          None.
Item 2.   Changes in Securities and Use of Proceeds
          None.
Item 3.   Defaults Upon Senior Securities
          None.
Item 4.   Submission of Matters to a Vote of Security Holders
          None.
Item 5.   Other Information
          None.
Item 6.   Exhibits and Reports on Form 8-K
          None.
                              SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.ACE HARDWARE CORPORATIONRITA D. KAHLEDATE May 14, 2002    
       Rita D. Kahle
  Executive Vice President
(Principal Financial and Accounting
   Officer, and duly authorized 
    Officer of the registrant)