Ace Hardware, the makers of the hickory-and-wood furniture and wall decor that helped usher in the new millennium, has sold more than 7 million products online since it launched in 2011.
Now, its online store is shutting down for good, and its founder, Mike Koontz, says the company will “focus on its core business.”
Koonts announcement comes days after the company reported net losses of $1.8 million in the fourth quarter.
The company said in its latest earnings call that Koontzes $500 million business is a drop in the bucket compared to the $3 billion it has raised.
In fact, the company said, the growth in its business is only half of the growth of its $1 billion sales, and that its current revenue is only 25 percent of the $10 billion it expects for the year.
The real story here is the failure of the retail market, says Koont, who recently announced a venture called Hardware & Crafts.
“The retail industry is a failure, and it’s not going to change,” he said.
“It’s just that it’s an antiquated model that’s not sustainable, and frankly, the marketplace isn’t as dynamic as it needs to be.”
Koourtz, who said in his first public comments on the company’s shutdown that he doesn’t expect to “be around long,” said that the company expects to launch new products soon.
“We are building out new businesses and I will be working closely with the people at Ace Hardware to build out new brands,” he told CNBC’s “Squawk Box” podcast.
“There’s a lot of interest in these brand new products, but I think it’s just a matter of time.”
Koortz is not the only one who is pessimistic about the future of online retailers.
Amazon is facing another round of legal troubles over the sale of counterfeit items.
Last week, the Federal Trade Commission (FTC) filed a lawsuit against the online retailer accusing it of deceptive and unfair business practices.
The lawsuit alleged that Amazon failed to disclose the presence of counterfeit goods in its warehouses and that Amazon did not provide customers with warning labels warning that a counterfeit item might be available in their shopping cart.
The FTC has also launched an investigation into how Amazon sells online shopping.
The Justice Department has also taken over the investigation into Amazon, and Amazon is being sued by the Justice Department for allegedly defrauding consumers by not giving consumers enough information to avoid being duped.
Meanwhile, eBay is also facing lawsuits over its role in selling counterfeit goods online.
On Thursday, eBay said that it had launched a new program to prevent buyers from purchasing items from websites that are not authorized to sell them.
eBay said the program would be limited to products from “approved sellers” that were vetted and vetted by the company before being offered as part of a seller’s auction.
The new program will apply only to eBay auctions, which it said were “one of the most important platforms eBay serves customers.”
The program is limited to eBay’s sellers, not eBay.
The agency said it would work with sellers to share information about their auctions and to improve the verification process for buyers.