ACES – Better margin from outside Java area

ACES – Better margin from outside Java area Ace Hardware (ACES) continues to do its stores expansions, especially outside Java, as it offers better margin than other area and to maintain its existence as a retailer of household needs through strategic innovations. ACES' better margin from outside Java, is mainly due to the company' implementation of more diversified product costs, along with relatively lower rental and wage costs, while the logistics costs are bore by its customers. At the end of March 2024, ACES has opened 3 new stores, namely a home center and 2 stores in Pejanten Park Jakarta, Banyuwangi and Garut. With this expansion, ACES added a total store space of up to 582k m2. However, ACES's main focus this year is to maximize the Ace Xpress concept in the Java region, especially big cities, which involves opening small stores near residential areas. The size of the Ace Xpress ranges from 500-600 m2 compared to the usual store format which reaches 2,000-2,500 m2. This year, ACES targets SSSG of around 7% yoy to achieve revenue growth of 10% yoy and new store openings of 15-10% yoy.(Source : Kontan)