Indonesian retail sector continues to thrive

In Indonesia, minimarkets have grown rapidly at the expense of supermarkets and hypermarkets in the last five years. The volume of sales in Indonesian minimarkets is expected to jump 13.5% to US$8.3 billion (IDR 94 trillion) in 2014, compared to this year’s $7.3 billion. The large population of more than 240 million and rapid urbanization translate to high demand for nearby shops where people can fulfill their daily needs; this is particularly evident on the island of Java.

Based on data from the Indonesia Retail Employers Association, transactions in minimarkets have grown at an average of 26% per year in the last five years. Even though the growth is expected to slow to 13% this year and in 2014, the largest minimarket chains in Indonesia, such as Alfamart, Indomaret and 7-Eleven, all have ambitious plans to expand.