Ace Hardware Conglomerate Kuncoro Wibowo Wants To Close Outlet At AEON BSD Tangerang Which Has Been Open Since 2015, Why?

Ace Hardware outlets. (Photo: Doc. Miko Mall Kopo)

JAKARTA - The retail company belonging to the conglomerate Kuncoro Wibowo, PT Ace Hardware Indonesia Tbk (ACES) is rumored to be closing one of its outlets in BSD City. Ace hardware will close its outlets located at the AEON BSD Tangerang mall, starting May 29, 2022.

"In accordance with Bapepam regulation No. XK1 regarding information disclosure which must be immediately announced to the public, we hereby inform you that the company will close the store located at AEON BSD, Tangerang on May 29, 2022," explained Ace Hardware's official statement on the information disclosure page of the Stock Exchange. Indonesian Stock Exchange (IDX), Friday 27 May.

The outlet, which has been operating since May 30, 2015, was closed on the grounds that it was part of the company's business development strategy. Throughout 2022, the company has opened 7 new outlets located in Surabaya, Bandung, Depok, Bogor, Lombok, Palembang and Tangerang.

Total outlets owned by ACES to date are 221 outlets. Meanwhile, Ace Hardware sales in the first quarter of 2022 amounted to IDR 1.59 trillion, down 3.41 percent compared to sales in the first quarter of 2022 of IDR 1.64 trillion.

Throughout the first quarter of 2022, by product type, declines occurred in almost all segments. Sales of home banking products decreased from Rp890.26 billion to Rp867.75 billion, while lifestyle products decreased from Rp696.38 billion to Rp658.42 billion.

The sales of toy products increased from the previous Rp60.87 billion to Rp65.05 billion. The decline in ACES sales also reduced the company's cost of goods sold.

During the first 3 months of 2022, ACES's cost of goods sold amounted to Rp.841.23 billion, down 2.37 percent compared to Rp.861.65 billion in the first quarter of 2022. This caused the company's gross profit to fall 4.23 percent from Rp.830 billion, to Rp.785. 27 billion in the first quarter of 2022.

ACES' operating profit also decreased from IDR 213.56 billion to IDR 203.90 billion or a correction of 4.52 percent yoy.

The decline in ACES' operating profit also led to the decline in comprehensive income for the period attributable to owners of the parent entity to Rp153.49 billion, from Rp161.64 billion in the first quarter of 2021.