Before Giant, These Retailers Also Shut Outlets

TEMPO.CO, Jakarta - Giant Supermarket, owned by PT Hero Supermarket Tbk, is set to closesix of its outlets later in July.

The Giant outlets to be closed include Giant Express Cinere Mall, Giant Express Mampang, Giant Express Pondok Timur, Giant Ekstra Jatimakmur, Giant Ekstra Mitra 10 Cibubur, and Giant Ekstra Wisma Asri.

This is not the first case of an established retail store closing a number of its outlets. Many have chosen to reduce the number of its branches for financial reasons. Some had difficulties competing with the growing online shops, while others had to relocate to areas that were deemed more productive. 

Read: 95 Percent Aprindo Members Expand to Online Stores

Here are three established retailers in Indonesia that were forced to close a number of their outlets in the past two years:

1. GAP

Back in 2018, the U.S. brand stopped its operations in the Indonesian market after PT Gilang Agung Persada as the brand’s operations rights holders did not extend its contract with GAP Inc. This effectively closed down five GAP outlets spread in Jakarta, Bali, and Surabaya.

2. New Look

This renowned British fashion brand shut down all of its business outlets on February 19, 2018. The brand that was locally managed by PT Mitra Adiperkasa Tbk. (MAPI) closed a total of 12 outlets at Jakarta’s Senayan City, Pondok Indah Mall, and Paris Van Java, before New Look took a tumble worldwide.

3. 7-Eleven

Global convenience store chain 7-Eleven Inc did not extend its contract with PT Modern Sevel Indonesia as its business management entity across Indonesia. The entire chain officially stepped off of the Indonesian market at the end of June 2017. 

Read: Hero Supermarket Massive Layoff Leave Hundreds Unemployed

However, Industry Minister Airlangga Hartarto said the 7-Eleven closedown was mainly attributed to bad business management by stockholders rather than the weakening retail market.

BISNIS