TEMPO.CO, Jakarta - Indonesian Retailers Association (Aprindo) deputy chairman Tutum Rahanta stated that there will be more retail shops to close down.
“Some of my colleagues have confirmed that they will close down or cut their growth,” Tutum said in Central Jakarta on Saturday (28/10).
Tutum explained that businessmen will take efficiency measures if the trend of conventional retail begins to significantly decline. Tutum added that one of the efficiency measures is closing stores and reducing company expenses.
Tutum mentioned that closing down conventional stores is not solely caused by the emergence of e-commerce. Tutumexpressed that the changes to consumer behavior cause the decrease of returns of conventional stores.
Indonesia University Dean and Professor of Economy and Business Faculty Ari Kuncoro stated that there is a change of preferences of middle class income in shopping. Ari claimed that people are not more interested in purchasing recreational experience such as vacation compared to purchasing goods.
With such tendency, people save up money for recreational needs. As a result, their expenses on goods are limited.
ALFAN HILMI
