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Giant supermarkets are closing, what is the current state of retails in Indonesia? (image via Singapore Stuff)
The Current State of Retail in Indonesia
Last week, people were shocked after PT Hero Supermarket Tbk announced they are going to close 6 Giant supermarkets in Jakarta, Depok and Bekasi. Giant supermarket has many stores across Indonesia, which is why people are familiar with the supermarket. PT Hero Supermarket Tbk revealed they are going to close the supermarkets at the end of July 2019.These past few years, new e-commerces are joining the retail industry in Indonesia. These e-commerces would have promos, such as cashback and discount. For Indonesian people, these e-commerces are tempting because the price is cheaper. Moreover, for those who don't have the time to go to the offline supermarket, it is a great solution. Because of this, the sales for offline supermarkets are declining. Previously, Hero has closed 32 stores this year. However, their Guardian and Ikea stores are making profits, which is why they are opening more Guardian stores.
The same case goes to PT Matahari Putra Prima Tbk (MPPA). They close their retail stores such as Hypermart, Foodmart, Boston, Foodmart Xpress and Smartclub. The number of their stores keep declining since 2016. The rise of e-commerces is the reason for them to close down as well.
Although big retails are slowly closing down, small retails (mini market) like Indomaret and Alfamart are opening more stores. There is a significant increase of number from 2017 to 2018. Indomaret is reported to have opened 1,011 between 2017 to 2018, while Alfamart has opened 1,283 stores in the same year. Mini markets are easily found anywhere in the streets, which is why people are choosing to shop in mini markets than in supermarkets inside malls.
Although big retails are announcing they are closing down, Informa, a furniture retail company thinks otherwise. The marketing director Nana Puspa Dewi revealed that Informa is planning to open 100 more stores in 2019. According to her, Informa had a significant growth in the past few years.
Source: https://katadata.co.id/analisisdata/2019/07/03/perubahan-peta-persaingan-bisnis-retail-di-indonesia
