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Covid-19 effects continue to hound Ace Indonesia

The shopping centres run by the Indonesian Kawan Lama group include Ace Hardware stores and Informa furniture stores as well as Toy Kingdom stores.

The shopping centres run by the Indonesian Kawan Lama group include Ace Hardware stores and Informa furniture stores as well as Toy Kingdom stores.

Sustained headwinds from the Covid-19 pandemic led to a 7.27 per cent drop in home improvement retailer Ace Hardware Indonesia's sales during the first half of 2021. Ace Indonesia's interim consolidated financial statement for the period shows that the company recorded sales of 3.325 trillion Indonesian rupiah (IDR, EUR 197.612 mio) from January to June 2021. Home improvement, its biggest segment, contributed IDR 1.756 trillion (EUR 105.360 mio), lifestyle products yielded IDR 1.438 trillion (EUR 86.280 mio), while toys made up IDR 130.989 bn (EUR 7.859 mio).

Ace Indonesia attributed the tepid results to reduced store visits and restrictions in the operating hours of retail outlets in the country that is one of the worst hit by Covid-19 in Southeast Asia. World Health Organization data show that as of 19 August, 3.93 million people in Indonesia contracted Covid, with 122,633 of them dying. The country of more than 270 million people has fully vaccinated around 11 per cent of its population.

The home improvement chain did not give a quarterly breakdown in its latest financial report, but computations against its first quarter financial statement indicate that sales held for April to June 2021, when it made IDR 1.677 trillion (EUR 100.620 mio) from IDR 1.647 trillion (EUR 98.820 mio) in January to March 2021. During the period, Indonesia broke out of recession, registering a 7.07 per cent expansion in its economy after five successive quarters of contraction.

Ace Indonesia is a member of the Kawan Lama group. Based on its license agreement with the US-American cooperative Ace Hardware which is set to expire in 2024, the company is required to open a minimum of two branches a year. As of May 2021, the company operated 208 Ace Hardware stores with a retail space of 506 400 m² and ten Ace Xpress branches with a retail space of less than 1 000 m². It also operated 57 Toys Kingdom outlets.

|24 August 2021 | 10:14


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