Jakarta, CNBC Indonesia – All Giant outlets will be closed in July. This was conveyed directly by the Management of PT Hero Supermarket Tbk (HERO).
This week, through the disclosure of information published by HERO through information disclosure, the company explained that it would convert up to five Giant outlets into IKEA. The Company is also considering converting a number of Giant outlets into Hero Supermarket outlets.
In an official statement, Director of HERO Hardianus Wahyu Trikusumo, said the company’s reason was as a quick and appropriate response from companies that needed to adapt to changes in market dynamics, especially regarding the shift of Indonesian consumers from hypermarket formats in recent years, a phenomenon that has also occurred in the market. global.
“This plan is expected to have a positive impact on the company’s operational activities, financial condition or business continuity,” he said in an information disclosure on the Indonesia Stock Exchange (IDX), Tuesday (25/5/2021).
As is known, the impact of the pandemic has caused the company to close several Giant outlets in the Jakarta and Depok areas.
Hadrianus explained that the closing of these stores is a process of transforming the company’s business to ensure that we can compete effectively in the food retail business in Indonesia.
This is because food retail has experienced increased competition in recent years. In addition, the overall business performance is also greatly affected by the ongoing pandemic.
Up to the first 3 months of this year, HERO still recorded a loss attributable to owners of the parent company of Rp 1.64 billion, lower than the loss in the first quarter of 2020 of Rp 43.55 billion.
This loss can be reduced considering that the company managed to reduce its operating expenses to Rp 514.89 billion from the previous Rp 774.48 billion. Meanwhile, in terms of revenue, it was still corrected by 32% to Rp 1.76 trillion from the previous year of Rp 2.60 trillion.
Patrik Lindvall, President Director of HERO, in an explanation on April 30, emphasized that the financial performance of HERO’s grocery retail business continues to be significantly affected by the pandemic.
Strict social restrictions, domestic travel bans and in particular, the closing or imposition of strict restrictions on shopping centers/malls have changed customer spending patterns substantially and reduced the number of customer visits to these locations.
“As a result, this materially affects the performance of hypermarkets as large format shopping destinations which are the main tenants in shopping centers/malls and are where the majority of Giant’s store areas are located,” he said.
Giant Employee Crying Viral Video
The news of the closure of all Giant retail outlets has also become a hot topic of conversation on social media, including Twitter, TikTok, and Instagram and Facebook.
On TikTok, a video uploaded by an employee of Giant @shinta84.66 was circulating, on Tuesday (25/5/2021).
“Finally it’s all over… GIANT has fallen #giantclosing #giant # Tutuptoko #closingstore,” wrote @shinta84.66 in the video caption. finally it’s all over… GIANT is falling #giantclosing #giant # Tutuptoko #closingstore ? There are a lot of strong people in this sound – MILKAAAA.
This video was re-uploaded on the Instagram account @lambepelakor_
– .
