Even though PSBB is transitioning, economic recession keeps malls quiet

JAKARTA, KOMPAS.com – Governor of DKI Jakarta Anies Baswedan has changed the status of Phase II or Large-Scale Social Restrictions (PSBB) PSBB Tightening Becomes Transitional PSBB.

The PSBB for this transitional period will last for two weeks, starting Monday (12/10/2020) to Sunday (25/10/2020).

Even though the restrictions were relaxed, it did not immediately restore traffic activity and shopping transactions in shopping centers.

This is because the Indonesian economy is experiencing a recess in the third quarter of 2020 which was triggered by the Covid-19 pandemic.

Also read: Jakarta PSBB, Visitors Run to the Edge Mall

Senior Associate Director Retail Services Colliers International Indonesia Sander Halsema said, recession very clearly influences trust consumer.

” Consumer tends to set stricter priorities and reduce their overall spending, “Sander said in his received report Kompas.com, Tuesday (13/10/2020).

Thus, this has a negative impact on the sector retail.

Sander continued, the Covid-19 pandemic has threatened retail sector so deep which is marked by sales that have decreased very dramatically.

However, it cannot be denied that not all consumers have the same responses and spending habits during this difficult time.

Therefore, retailer need to understand in depth what their shopping experience is.

Also read: Mall Visits Dropped by 10 Percent, This is the Cause

Sander said that the efforts of the DKI Jakarta Provincial Government to change the status of PSBB Phase II to Transition aims to help the National Economic Recovery (PEN) and retail operate again as long as they adhere to the rules and regulations.

According to him, re-opening shopping center, restaurants and shops for the public are a positive development even though they are only at 50 percent capacity.

From the last APPBI records at the commencement of PSBB tightening, visit rates times is already at an alarming point, which is only 10 percent.

So, even though it was allowed to operate, he saw, the level mall visit will not experience a significant increase.

“Even though people can now go to shopping centers, they are still hesitant to go out and remain cautious about the situation (Covid-19 Pandemic),” continued Sanders.

Sander saw that there was only a slight increase in community visits to malls or the same as the first Transitional PSBB.

However, he hoped, mall visit rate can continue to experience gradual improvement over time.

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