AZKO's Inspirational Concept Store Revamp Boosts Sales and Foot Traffic

The rejuvenation appeals to Gen Zers, who value experiences more than transactions.

AZKO Retail expects its rejuvenation strategy to boost sales productivity by at least 10% per sqm, as it reinforces its role as a partner for home and life improvement with a complete A-to-Z product collection.

The transformation at AZKO—the new name for Ace Hardware in Indonesia—was designed to appeal to Gen Z and young families who value experiences more than transactions, Gregory S. Widjaja, Director at AZKO parent PT Aspirasi Hidup Indonesia Tbk (ACES), told Retail Asia. 

“Customers need inspiration, not just shelves full of products,” he added.

AZKO introduced the concept at flagship sites in Living World, Alam Sutera and at a 600-square-metre express store in Kelapa Gading, North Jakarta. Gregory said the company aims to implement the model in eight stores this year, with layouts customised for each market.

The format highlights thematic zones and “idea spots” where shoppers encounter curated setups like full kitchens. Customers often make purchases after seeing appliances and cookware displayed in a complete environment, he said, adding that AZKO follows a strict color guide to ensure visual harmony and reinforce a sense of inspiration.

Sustainability is now part of the shopping experience through drop boxes at AZKO stores that collect aging electronic devices and appliances. Customers receive discounts when purchasing new electronics, while AZKO works with partners to responsibly process electronic waste and reduce the amount that ends up in landfills.

AZKO has also redefined the role of its employees, now referred to as advisors. Gregory said they recommend products tailored to customer profiles, such as compact appliances for students, multifunctional tools for young families, and health-oriented options for older shoppers.

Digital integration has strengthened the concept. Gregory said features like scan-and-shop let buyers avoid carrying bulky items, as the products can be delivered straight to their home whilst buy-online-pick-up-in-store is gaining wider use. The company’s omnichannel system streamlines transactions and boosts convenience.

AZKO has expanded its online presence through ruparupa — Kawan Lama Group’s omnichannel platform — as well as Shopee, Tokopedia, and TikTok Live. Gregory said the company aims to engage customers before they step inside a store, noting that video content has been especially effective in reaching younger audiences.

The company continues to grow physically while expanding its digital reach. This year, AZKO opened new branches in Abepura and Sorong in Papua Province, Palu and Kolaka in Sulawesi, as well as Bukittinggi and Rantau Prapat in Sumatra, demonstrating its commitment to expanding into tier-two and tier-three cities in Indonesia.