Indonesian Govt Uncovers Causes of Modern Retail Sector Downturn

TEMPO.CO, Jakarta - Trade Minister Budi Santoso revealed at least three triggers for the downfall of modern retail in Indonesia. "Modern retail will inevitably lose to online platforms if it only focuses on selling without providing an experience or a journey," said Budi at the Trade Ministry office on Wednesday, June 4, 2025.

Apart from that, Budi also pointed out changes in society's shopping patterns. According to him, the frequency of shopping has decreased, shifting from weekly or monthly needs to just one or two days' worth of shopping. "Eventually, people only shop at the closest retail establishments."

Budi emphasized that a retail establishment such as a mall or department store cannot solely rely on being a shopping destination, but should also provide dining, relaxation, or gathering areas. Without that, the retail establishment will experience a decrease in visitors.

In addition to changes in shopping patterns and facilities, Budi added the retail challenge caused by digitalization. According to data from the Central Statistics Agency (BPS), approximately 33.3 percent, or around 65 million productive Indonesian citizens, prefer to shop through e-commerce or online. "We also need to adapt our strategies to this existing trend and consider how we can sell our products," said Budi.

As is known, GS Supermarket is one of the foreign retail establishments that have closed their networks in Indonesia. In a post on the Instagram account of GS Supermarket @gssupermarketid, they announced that customers could quickly exchange their shopping points, as they would expire on May 31, 2025. "A special call to all members: Don't forget to use your membership points at GS The Fresh before they expire on May 31, 2025," they wrote.

According to their official website, LG Supermarket was originally established in 1974 as Lucky Superchain Co., Ltd. It then changed its name to GS Supermarket with the launch of the GS Group. In 2019, it evolved into "GS THE FRESH," a "lifestyle market that brings life value."

GS THE FRESH is a store that is always close to customers' daily lives, carrying the values of Friendly, Fresh, and Fun. The store offers various fresh products while prioritizing a friendly, fast, comfortable, and enjoyable shopping experience, and focuses on more friendly customer service.

By greeting customers through its new identity, GS THE FRESH is ready to start a new chapter in the shopping experience, bringing new happiness and promising higher satisfaction for its consumers.

GS THE FRESH asserts its position as a leader in the Korean retail market with a commitment to the quality of fresh products, taste, and customer service. The company only presents the best selected products from various outstanding regions in South Korea, and ensures product safety through internal inspection management.

In its efforts to provide the best shopping experience, GS THE FRESH has ranked first in the Korean Service Quality Index (KS-SQI) for seven consecutive years, thanks to its customer-focused and innovative service approach.

As a differentiator from its competitors, GS THE FRESH offers various exclusive content and products. One is the Real Price program, which brings quality SME products at more affordable prices. There is also a leading line of fresh products called Fresh Special City, which offers the best harvests with curated taste quality.

GS THE FRESH also expands its services through an online platform with a pre-order system for premium products that are hard to find in physical stores. Customers can enjoy various attractive offers, such as special discounts and additional points, through the GS Pay digital payment system.

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