JAKARTA – PT Hero Supermarket Tbk decided to close all Giant outlets in Indonesia starting July 2021. The company focuses its business on the IKEA, Guardian, and Hero Supermarket trademarks.
President Director of PT Hero Supermarket Tbk Patrik Lindvall said, as part of this new focus, PT Hero Supermarket Tbk. will convert up to five Giant outlets into IKEA, which is expected to increase accessibility for customers.
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Other Giant outlets will be reluctantly closed at the end of July 2021, although negotiations regarding the potential transfer of ownership of a number of Giant outlets to third parties are still ongoing.
“In addition, PT Hero Supermarket Tbk. Is also considering converting a number of Giant outlets into Hero Supermarket outlets,” he said through his statement, Tuesday (25/5/2021).
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He said his gratitude to employees and customers, as well as business partners who have supported Giant’s business so far. Patrick also ensures that the communication process with all employees affected by this change will run well, and ensures a fair process for all business partners.
“Big decisions like this are not easy, but we believe this decision needs to be taken for the long-term interests of PT Hero Supermarket Tbk. And our employees who are under the auspices of the company,” he said.
Furthermore, in the future HERO Group will focus on developing the IKEA, Guardian, and Hero Supermarket trademarks. The three brands are considered to have higher growth potential than Giant.
“Like any capable business, we continue to adapt to changing market dynamics and customer trends, including the declining popularity of the hypermarket format in recent years in Indonesia, a trend that is also evident in the global market,” he said.
Patrick believes that in the future the household appliances, health and beauty sectors, as well as daily necessities for the upper class, have high growth potential.
“Within two years, we are targeting to quadruple the number of our IKEA outlets compared to 2020, as well as open up to 100 new Guardian outlets by the end of 2022,” he explained.
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