Post-Transformation, AZKO's Expansion Strategy Deemed Appropriate

Indonesian consumer confidence remained in the optimistic zone in April 2026. This was reflected in Bank Indonesia’s Consumer Survey, which put the Consumer Confidence Index at 123.0, a slight increase from 122.9 in March 2026. Consumer confidence in April was mainly supported by an improved public perception of current economic conditions, accompanied by increased purchasing power as government programmes rolled out to boost household consumption. Research Analyst from Infovesta Kapital Advisori, Arjun Ajwani, assessed that the retail industry’s prospects this year are brighter than last year. He expects the retail industry to improve in line with rising consumer purchasing power, driven by government programmes. ‘Similarly, the issuer PT Aspirasi Hidup Indonesia Tbk (ACES), which houses AZKO, also has good prospects and is worth collecting,’ Arjun stated. He estimated a target price for ACES in the range of Rp 400-425, noting its valuation remains very attractive. ‘ACES has formed a double-bottom pattern, signalling strong reversal potential,’ he detailed. Meanwhile, Senior Analyst at Mirae Asset Sekuritas, Nafan Aji Gusta, considers ACES’s strategy solid amidst macroeconomic challenges. He believes the aggressive multi-format expansion strategy is very appropriate. ‘On the other hand, a selective pricing strategy is quite good, coupled with supply chain optimisation and stock keeping unit management, making it a sound strategy in the current macro situation,’ Nafan stressed. He also confirmed that Azko’s plan to continue adding outlets is a good move to develop profitability. During the first quarter of 2026, ACES recorded net sales growth of 10.1% to Rp2.35 trillion, and profit for the year grew by 18.3% to Rp163.59 billion compared to the same period the previous year. This performance was strengthened by improved Ramadan and Idulfitri momentum, reflected in higher transaction quality. The company booked Same Store Sales Growth of 4.3%. Director of PT Aspirasi Hidup Indonesia Tbk, Gregory S. Widjaja, said the first-quarter performance reflects consistency in executing strategic initiatives in product strengthening, operational management, and store network expansion. ‘We see improvements in customer shopping interest and activity, which are important indicators for maintaining growth. Going forward, we will continue the measured development of the AZKO and NEKA store networks, coupled with efforts to increase store productivity and operational efficiency. Our focus is ensuring every initiative delivers long-term value for both customers and the company’s performance,’ Gregory stated. In terms of expansion, ACES added four new stores during Q1 2026, comprising two AZKO stores and two NEKA stores. By the end of March 2026, the store network reached 267 AZKO stores and 12 NEKA stores across Indonesia. These additions are part of a targeted effort to broaden reach and strengthen presence in potential cities. The company is targeting a total of 65 to 80 new stores in 2026, consisting of 25-30 AZKO stores and 40-50 NEKA stores, to extend services across Indonesia. This is also part of realising its ‘Your Home Life Improvement Partner’ slogan, inspiring better living through an A-Z range of products, comprehensive services, and collaborative ideas. Most recently, Azko introduced a New Replacement Warranty Service, guaranteeing products are free from manufacturing defects, along with after-sales service to ensure customer satisfaction even if a purchased product experiences issues.