Modern Retail Business Projected to Grow 10% in 2019

Modern retail sales are estimated to reach Rp256 trillion in 2019, or grow around 10% from last year’s realization.

Deputy Chairperson of the Indonesian Retail Entrepreneurs Association (Aprindo) Tutum Rahanta said, the projection was fairly moderate but still better compared to the achievement of the growth of modern retail business in 2017 which was only 3.7%.

“However, we remain optimistic and will continue to grow 10% this year, but we will remain cautious. So, this 10% growth is more conservative, “he told, recently.

Based on Aprindo data, the value of modern retail sales in 2016, 2017 and 2018 reached Rp205 trillion, Rp212 trillion and Rp233 trillion respectively.

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.

“So, electronic commerce is strong enough to influence people’s shopping patterns. [Transactions with offline] will be a bit of a barrier to growth, “he said.

Quoting McKinsey data, the value of RI electronic trade transactions is predicted to touch US $ 55 billion — US $ 65 billion in 2022, aka eight times the realization of 2017 which reached US $ 8 billion.

Corporate Affair Director of PT Sumber Alfaria Trijaya Tbk. (Alfamart) 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.

Meanwhile, Vice President of Corporate Communications Transmart Carrefour Satria Hamid said that the company will add 22 new stores by 2019.

“So, revenue growth will run with the addition of our outlets,” he said.

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 retailers.

Related Articles

Leave a Reply