What's Happening?
AZKO Retail, formerly known as Ace Hardware in Indonesia, has revamped its store concept to appeal to Gen Z and young families. The new strategy focuses on creating inspirational shopping experiences rather than just product transactions. The revamped stores feature thematic zones and 'idea spots' where customers can see products in curated setups, such as complete kitchen environments. This approach has reportedly boosted sales productivity by at least 10% per square meter. AZKO has also integrated sustainability into its stores by offering drop boxes for electronic waste recycling. The company plans to implement this concept in eight stores this year.
Why It's Important?
AZKO's store revamp reflects a growing trend in retail where experiential shopping is prioritized to attract younger consumers. By focusing on creating engaging and inspirational environments, AZKO is tapping into the preferences of Gen Z, who value experiences over mere transactions. This strategy not only enhances customer satisfaction but also drives sales and foot traffic. The integration of sustainability initiatives, such as electronic waste recycling, aligns with the increasing consumer demand for environmentally responsible practices. AZKO's approach could influence other retailers to adopt similar strategies to remain competitive in a rapidly evolving market.
What's Next?
AZKO plans to expand its revamped store concept to additional locations, customizing layouts for each market. The company is also enhancing its digital presence through platforms like Shopee and TikTok Live to engage customers before they visit physical stores. As AZKO continues to grow its physical and digital footprint, it may explore further innovations in customer experience and sustainability. The success of this strategy could lead to increased market share and set a benchmark for other retailers aiming to attract Gen Z consumers.
