Subdued growth in 2019 for Ace Hardware Indonesia

Ace Hardware Indonesia reported slower growth in 2019 amid the less-than-stellar performance of Southeast Asia's biggest economy. Data from its annual report show that the Indonesian licensee of the American home improvement cooperative Ace Hardware made Rp 8.142 trillion (EUR 499.685 mio) in sales last year, up 12.5 per cent from 2018. The growth was restrained compared with 2018, when the company saw sales increasing 21.9 per cent. Same store sales rose 5.5 per cent in 2019, lower than the previous year's growth of 13.5 per cent. Net profit hit Rp1.036 trillion, up 6.17 per cent. The company's relatively subdued financial performance came in a year that also saw Indonesia missing its economic growth target. The country's gross domestic product (GDP) grew 5.02 per cent in 2019 from 5.17 per cent in 2018.Ace Hardware Indonesia, which started the year with 176 outlets, nevertheless expanded its store network to end 2019 with 197 branches (23 opened, two closed) and an aggregate retail space of 474 380 m² across 45 cities and 26 provinces. To offset the negative impact of movement restrictions imposed to deter the spread of Covid-19 in the country, the cooperative encouraged patrons to make use of its online facility, Ace Online, and its WhatsApp Shopping service. Established in 1995, Ace Hardeware Indonesia is a subsidiary of PT Kawan Lama Sejahtera, a distributor of industrial equipment and machinery. It has been listed on the Indonesian bourse in 2007 and has since evolved into a one-stop shopping destination with 60 000 products in its stores. The company, which targets middle to upper class clients, has two categories: home improvement and lifestyle. It also owns a toy store.