Ace Hardware Indonesia, the country’s top home improvement retailer, aims to build 10 to 15 stores this year and has allotted up to 300 bn Indonesian rupiah (EUR 18.6 mio) for the undertaking. The company, which is run by the Kawan Lama Group, disclosed during an investors’ briefing that three of the outlets will be anchor tenants in malls it is currently building. “We will remain cautious in selecting locations for store openings,” the transcript for the investors’ briefing read.
No new branches are planned for IKN Nusantara, the city which is being carved out of east Kalimantan in Indonesian Borneo to replace Jakarta as the capital by 2024. “The outlet closest to the IKN is in Balikpapan, and for the time being it is felt to be enough to cover the area. When the economy there has started to grow, the company will reconsider,” Ace Indonesia said.
Ace Indonesia aims to grow sales by 8 to 10 per cent this year, as it noted that online has taken a bigger chunk of revenues, to 11 per cent from one per cent before the pandemic.
The company is unfazed with the growth of Malaysian player Mr. DIY in Indonesia, saying it anticipated the move of its competitor, which currently has 470 branches in the country. “Mr. DIY targets the middle to lower market; there are different target markets although there are several products that are similar. The company has anticipated with Ace Xpress, which currently totals 18 (outlets),” it said. Xpress is Ace Indonesia’s smallest of three outlet formats. Home Center is the largest followed by Hardware.