AZKO's Store Revamp Strategy Increases Sales and Foot Traffic

What's Happening?

AZKO, formerly known as Ace Hardware in Indonesia, has implemented a new store concept aimed at enhancing customer experience and boosting sales. The revamp targets Gen Z and young families, focusing on providing inspirational shopping experiences rather than mere transactions. The new concept includes thematic zones and 'idea spots' where customers can see products in curated setups, such as complete kitchen environments. This approach has reportedly increased sales productivity by at least 10% per square meter. Additionally, AZKO has integrated sustainability into its operations by offering drop boxes for electronic waste, providing discounts for new purchases, and redefining employee roles to better assist customers.

Why It's Important?

AZKO's strategy reflects a broader retail trend towards experiential shopping, which is particularly appealing to younger consumers who prioritize experiences over products. By creating an engaging and sustainable shopping environment, AZKO not only attracts more foot traffic but also enhances customer loyalty. The focus on sustainability and digital integration, such as scan-and-shop features and an omnichannel presence, positions AZKO as a forward-thinking retailer. This approach could serve as a model for other retailers looking to adapt to changing consumer preferences and environmental concerns.

What's Next?

AZKO plans to expand its new store concept to eight additional locations this year, with each store layout customized to its market. The company is also expanding its digital reach through platforms like Shopee, Tokopedia, and TikTok Live, aiming to engage customers before they visit physical stores. This expansion into tier-two and tier-three cities in Indonesia demonstrates AZKO's commitment to broadening its market presence. As the company continues to innovate and adapt, it is likely to see further growth in both physical and digital sales channels.