PT Ace Hardware Indonesia Tbk. (ACES) is increasingly writhing amid a pandemic transition. Recently, the management announced that it had opened its twelfth new store this year.
“One of the new outlets we have just launched is located in AEON Sentul, Bogor, with an area of about 2,200 square meters. Thus, the company has a total of 206 outlets as of the end of October this year, “wrote Ace Hardware Corporate Secretary Helen Tanzil.
The company also conveyed the opening of outlets at AEON Sentul on the official Ace Hardware website. “As of October 28, 2020, ACE is officially present at the 2nd floor of AEON Mall Sentul City,” wrote the Ace Hardware promotion on their official website.
Quoted from previous reports in September, Helen said the company is targeting to add two to three more outlets by the end of this year. On the other hand, the company closed three outlets; two outlets in Semarang and one outlet in Kuningan City, Jakarta, until early September 2020.
Previous Owned Store
in the last two quarters of this year, PT Ace Hardware Indonesia Tbk. (ACES) was taking steps to open some more outlets.
Helen stated that the newest outlet is located in Living Plaza Pamulang, Tangerang, and Banten, with approximately 2,930 square meters. Previously, the company had opened a new outlet located in Jogja Urip, Yogyakarta, with an area of around 2,000 square meters
The outlets remained operational during the pandemic. However, several outlets had temporarily stopped in certain areas that strictly implemented Large-Scale Social Restrictions (PSBB).
On a particular occasion, the company has considerations for the closure of outlets. The causes are also quite diverse, including lease periods that have ended. Therefore, they have to move to another location and evaluate outlet performance, including data on sales growth and outlet profitability.
Strategy to Survive
PT Ace Hardware Indonesia Tbk (ACES) implemented several strategies to sustain its business during the pandemic. One of them is sales. The company provides various shopping channels through ACE Online and the Rupa-rupa.com website.
Customers can also shop via the Whastapp chat listed on the Ace Hardware official website. Helen said that ACE continues to serve customers through various shopping channels. Both offline (most of the stores remain open), online (via ACE Online at www.acehardware.co.id/shop or at ruparupa.com which is the authorized online retailer of the Kawan Lama Group), as well as ordering via WhatsApp.
“Besides, ACE provides a safe and comfortable shop for customers by performing general cleaning using disinfectant liquid regularly. It is applied to every shopping equipment (trolleys, EDC machines), cashier areas, customer service areas, escalators and lifts, toilets, to floors, “said Helen.
ACE also provides hand sanitizers for customers in the cashier area. Customer service creates unique signs to keep distance in the cashier line for social distancing. They also advise customers to make non-cash transactions using cards or digital payments.
ACE employees also carry out hygiene protocols for safety when serving customers. “ACE now provides various payment facilities to make it easier for customers. Including through 0% installment facilities using a credit card or installments without a credit card. One of our recommendations using Danakini, a financing institution under the Kawan Lama Group, debit cards, digital payments, to bank transfers,” said Helen.
Helen explained that ACE provides a variety of quality products. Not only for home and lifestyle needs but also for products that support a healthy lifestyle as a solution to keep all family members clean, fit, and healthy.
Security Review
Mirae Asset Sekuritas noted that the company’s store growth or same-store sales growth (SSSG) decreased 19.4 percent annually, specifically for last September. This figure is much lower than the only single-digit decline in the previous August.
Analyst Christine Natasya from Mirae Asset Sekuritas explained that the company’s SSSG in September was at least better than April, when the PSBB was first implemented, with a 27.7 percent correction on an annual basis.
“We attribute the decline (SSSG) to a surge in sales in September 2019, tougher implementation of the PSBB in September 2020. It considers a weakening demand because many people are still afraid to leave their homes during the pandemic,” he explained as quoted from research, October 20, 2020.
Therefore, securities predict ACES’ net profit for the first nine months of this year to reach IDR 550 billion to IDR 565 billion, with a decrease in the same post specifically for the third quarter reaching 19 to 25 percent annual basis.
Sekuritas believes that its gross margin can be maintained or even slightly increased by selling more lifestyle products or lifestyles. Thus, quarterly the net profit margin can increase if it is followed by an increase in sales and efficiency in operating expenses and negotiations for lower rental costs.
Previously, the President Director of Ace Hardware Indonesia, Prabowo Widyakrisnadi, also delivered an open letter intended for stakeholders. The open letter includes the company’s commitment to continue serving customers by making it easy to get products during the Corona pandemic.
This convenience can be obtained through online shopping facilities (ACE Online) or ordering via WhatsApp. The company also continues to prepare a safe and comfortable shop by implementing specified hygiene and health standards.
