Matahari Closes Another Outlet; Department Stores Downsizing
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - Matahari Department Store`s decision to close its Mal Taman Anggrek outlet in West Jakarta has triggered worries about whether retail stores can survive customers` weakening power purchase.
However, the Indonesian Shopping Center Management Association (APPBI) Alexander Stephanus Ridwan Suhendra chairman said that the business' prospects are still quite bright.
Stephanus, who is also the president director of PT Pakuwon Jati Tbk, said department stores can survive well if they adapt to the current market trend.
Read: Shoppers Hunt for Discounted Shoes as Matahari MTA Closedown
"The trend is to work in smaller scopes and spaces—from 20,000 square meters to 10,000," he said on Wednesday, November 22.
He said that customers are no longer interested to walk around in a department store just to get one item. "They prefer to get what they want, and then go home immediately."
At the same time, he sees that famous retailer brands such as Zara, Uniqlo and H&M are instead expanding their stores. "They are adding products to keep customers inside their stores," he said.
Christian F. Guswai, a managing consultant at Grow & Prosper Retail Consulting, shares his sentiment. "In rural areas, department stores still have good prospects because they don’t have independent fashion outlets like Zara and Uniqlo yet," he said.
These foreign brands, Guswai said, are penetrating the Indonesian fashion market with stronger brands, better designs, and competitive prices," he said.
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