Strong Business Fundamentals: AZKO's Strategy to Adapt to Changing Market Preferences

Jakarta, CNBC Indonesia - PT Aspirasi Hidup Indonesia Tbk (AHI) (ACES) reported solid performance in early 2026, reflecting the company’s strong fundamentals. In Q1 2026, the company recorded a 10.1% growth in net sales to Rp2.35 trillion and a 18.3% rise in net profit to Rp163.59 billion compared to the same period last year.

This performance was bolstered by a stronger Ramadan and Eid al-Fitr season compared to the previous year, alongside improved transaction quality. This strong performance demonstrates AZKO’s ability to understand domestic consumer needs through its innovations.

Senior Technical Analyst at PT Mirae Asset Securities, Nafan Aji Gusta, noted that ACES, through its AZKO retail network, understands the shift in modern consumer behaviour towards seeking shopping experiences rather than mere transactions.

“AZKO has implemented a new concept prioritising a seamless digital-first approach, alongside practical inspiration zones,” he told CNBC Indonesia on Monday, May 18, 2026.

To reach a broader market, AZKO has developed a new portfolio with the NEKA brand. NEKA addresses diverse home and lifestyle needs with affordable, practical, and daily-relevant products.

Throughout its journey, ACES has consistently developed strategies to meet Indonesian households’ needs. The company aims to build customer loyalty through enhanced service quality, product availability, and shopping experiences.

A major step was rebranding to introduce AZKO as the company’s new chapter last year, signalling its ongoing adaptation to Indonesia’s market needs.

Beyond rebranding, AZKO innovated to enhance consumer shopping experiences, including the launch of its first Experience Store at Living World Alam Sutera Mall in Tangerang in early 2025.

With a modern and innovative atmosphere and a seamless next-generation concept, the Experience Store integrates digital technology to create a more interactive and inspiring environment, aligning with public aspirations.

In October 2025, the company introduced new AZKO stores at Pondok Indah Mall 1 and Living Plaza Bintaro. The fresh, digital-interactive concept highlights the Inspirative Trend Zone, a thematic area showcasing contemporary lifestyle products such as sports equipment, wellness items, and home solutions aligned with current trends.

The transformation of Next-Gen stores—modern, interactive, inspiring, and relevant to deliver the best shopping experience for Indonesian customers—will continue for the next three years.

PT Aspirasi Hidup Indonesia Tbk Director Gregory S. Widjaja stated that AZKO’s latest concept features a contemporary appearance aligned with dynamic customer lifestyles.

“This update reflects our commitment to continuous innovation and moving forward with customers, delivering visually and emotionally engaging shopping experiences while embodying the #SerbaLebihdiAZKO spirit,” Gregory said.

According to him, the stores feature multiple inspiration zones supported by an interactive seamless digital-first concept for omnichannel integration, helping customers explore products, receive personalised recommendations, and purchase both offline and online.

Additionally, a kids’ playground area provides convenience for parents who wish to shop while leaving their children in the play zone.

Throughout 2025, the company expanded its services by opening 27 new AZKO stores, including 13 outside Java and 12 on Java (outside Jakarta), reaching 15 new regions such as Palu, Pematang Siantar, Palangka Raya, Bukittinggi, Kolaka, and easternmost areas like Abepura and Sorong in Papua. By end-2025, ACES operated 265 AZKO stores across 90 Indonesian cities, with 177 on Java and 88 outside Java.

The company will continue its expansion strategy, targeting 25-30 new AZKO stores, particularly in second- and third-tier cities, and 40-50 NEKA stores across Indonesia. We will also continue introducing innovative relevant products, such as smart home and smart kitchen categories, and ongoing store rejuvenation programmes at existing locations including AZKO Living World Alam Sutera, AZKO Kelapa Gading, AZKO Pondok Indah Mall 1, and AZKO Living Plaza Bintaro, to enhance shopping experiences,” Gregory added.

In line with this, ACES targets mid-to-high single-digit sales growth in 2026, supported by a capital expenditure (CapEx) allocation of Rp400-450 billion focused on expansion and operational infrastructure strengthening.