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Surviving and Competing in Medan’s Challenging Mall Industry Amidst Pandemic

While – Malls in Kota Medan are currently still under pressure after the COVID-19 pandemic. Some of them even went bankrupt in the last two or three years due to being closed during the pandemic.

For example, there is Hermes Place Medan which ‘collapsed’ during the pandemic. In fact, Hermes will carry out the renovation process in 2019.

Most recently, there is Ramayana Pringgan which was officially permanently closed in May 2023. It is known, this shopping center building has been transferred to the Medan City Government because the owner cannot afford to pay the rent.

“Indeed it belongs to the Pemko Medan which has expired for 25 years. Then the manager cannot afford to pay the rent to the Pemko Medan, per year it may be as expensive as Medan Mall. On the other hand, sales of Ramayana are also not very uplifting with so many online prices also cheap,” said North Sumatra Indonesian Shopping Center Management Association (APPBI) Advisor Herri Zulkarnain to detikSumatraMonday (10/7/2023).

Herri said, the shopping center business currently has big challenges to survive. He said conditions after the pandemic had not changed much compared to during the pandemic.

“It really feels like it’s not like before to take high profits. Now what’s important is profit, you can pay rent and electricity and then pay employees. It’s not like before, you have a lot of income, be happy first. With that in mind, we have to face this. This is Consumers are satisfied with business circulation, they can choose low prices, quality goods,” he said.

There are several malls that are currently in suspended animation because of the lack of visitors, such as Hermes, Paladium, Lippo Plaza, and Focal Point. He said the sales of several malls in Medan were still under pressure.

“Many also died like Hermes, Palladium died too. Palladium is actually still operating because the main door is always open, only each shop has been sold. Who wants to come there, the air conditioning is turned off, that’s a pity for those shops “They may have online, offline at Palladium. Medan Mall is also not that good as well as sales, we can see that Lippo Plaza is also not selling too well, only food is selling, where else to go,” he said.

Seeing this, Herry said that business people in malls need to set a strategy to be able to survive and compete both offline and online. Among them are giving attractive promos to lure buyers to shop for each tenant.

“Here is the name of the modern market, you have to think about the strategy to bring in consumers in the midst of quite tough competition plus online. We can react to this, if you go online, the goods are often not the same as what you want, but if you are offline, you can try and see. But make it attractive. such as discounts and promos. That is the competition that must be faced,” said Herri.

Watch Video “Backflow via Medan Train Predicted to Start April 25, 2023”

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2023-07-10 15:30:46
#Longer #Big #Profits #Mall #Business #Medan #Survival

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