Outlook Retail Business in Indonesia 2019
Lita JIC - Wednesday 15th May 2019 08:00 WIB
Along with the times, shopping centers are shrinking, with the closing of the world's leading retail stores. The cause of the shrinking prestige of shopping centers, one of which was influenced by the spread of the online commerce business (e-commerce). Nevertheless, Deputy Chairperson of the Indonesian Retail Entrepreneurs Association (Aprindo) Tutum Rahanta said retail businesses in Indonesia could still grow well throughout 2019. Modern retail sales are estimated to reach Rp256 trillion in 2019, or grow around 10% from last year's realization. the projection is fairly moderate but still better compared to the achievement of the growth of modern retail business in 2017 which was only 3.7%, he added.
As stated by the Minister of Industry last week, the government targets retail business this year to grow by 10%. This is in line with the growth of the retail business in previous years. The value of modern retail sales in 2016, 2017 and 2018 reached Rp205 trillion, Rp. 212 trillion and Rp233 trillion respectively (Aprindo data). According to Tutum, the performance of the modern retail industry in 2019 will be influenced by consumer spending trends that tend to wait and see as the political years progress. In addition, retailers are still facing pressure due to competition from e-commerce players.
Here is some Retail developments in Indonesia.
1. PT Sumber Alfaria Trijaya Tbk. (Alfamart) Corporate Affair Director Solihin Putera is optimistic that the corporation will again record double-digit growth this year, supported by sales from existing outlets. He explained, this year Alfa will be increasingly aggressively utilizing technology in increasing its customers' spending, namely through the WizPhone platform. Based on its financial reports, in the III / 2018 quarter Alfamart recorded a turnover of IDR 49.60 trillion, up 8.77% from the achievement of the same period the previous year worth IDR 45.60 trillion.
2. Transmart Carrefour, Corporate Communications Vice President of Satria Hamid, said that the company will add 22 new stores by 2019. "So, revenue growth will go hand in hand with the addition of our outlets," he said.
3. IKEA Indonesia Public Relations Manager Ririn Basuki also said that the company will continue the positive growth trend this year supported by the IKEA Business program, which targets the segment of restaurant, office, lodging and modern retail entrepreneurs.