Indonesian food and clothing retailers are gearing up for expansion to capture a greater share of the middle class and its higher income. “Expansion is crucial for the retail industry to boost sales turnover, other than renovating old branches,” said Tutum Rahanta, executive at Indonesian Retailers Association (Apri
Indonesian food and clothing retailers are gearing up for expansion to capture a greater share of the middle class and its higher income.
“Expansion is crucial for the retail industry to boost sales turnover, other than renovating old branches,” said Tutum Rahanta, executive at Indonesian Retailers Association (Aprindo).
He said if expansion is delayed, a retailer may lose its market share.
One retailer eager to expand is Hypermarket operator Matahari Putra Prima (MPP), which plans to open 20 new branches this year.
The company, controlled by the Lippo Group, has set aside $59 million for capital expenditure this year, an increase of 7% from 2013, most of which will be used for financing expansion of outlets in eastern Indonesia.
Danny Kanjongian, corporate communication director at MPP said the company plans to open up to 22 outlets this year, mostly in the eastern islands of the country.
Other retailers including supermarket chain operator Indomarco Prismatama, department store Ramayana Lestari Sentosa, fashion retailer Mitra Adi Perkasa and electronic retailer Ace Hardware are also in expansion mode.
Indomarco, controlled by Salim Group through Indoritel Makmur Internasional, the operator of Indomaret, plans to spend $110 miillion adding 1,300 new outlets.
Ramayana plans to spend $30 million adding 6 branches this year.