TEMPO.CO, Jakarta – General Chairman The Indonesian Retail Entrepreneurs Association (Aprindo) Roy N Mandey spoke up in response to rplans to close all stalls Giant at the end of next July. He stated the decision of PT Hero Supermarket Tbk. it becomes reflection of the depressed retail business situation.
“As an association of modern retailers, we are deeply saddened by this situation. After all, Giant is our member,” said Roy, Tuesday, May 25, 2021. “This also shows that modern retail, especially the hypermarket format, is already at a pulse.”
Roy explained, the decision to close shops are usually taken as the company’s last resort after taking a number of steps, from efficiency to use of reserve funds.
It estimates pThe massive closure of Giant stores will have some repercussions. Not only for employees who work in that sector, but also reduce investment because the hypermarket format includes product circulation in large quantities.
The sluggish hypermarket business, according to Roy, also risks holding back the emergence of new players or investors in this segment.
Meanwhile, on the other hand, the company’s efforts to divert five Giant outlets for the presence of the IKEA store and several other outlets for the Hero Supermarket are considered quite reasonable. This is because the trend of shopping at supermarkets and specialty stores tends to be good.
This step, according to him, can be followed by other hypermarket managers to reduce the burden during the pandemic. “The downgrade to smaller-scale stores could be even more widespread, not only in the hypermarket format, but also for supermarkets and specialty stores. Because the performance is still good on a small scale such as minimarkets,” said Roy.
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