Gerai Ritel Berguguran! Terhimpit Biaya Operasional yang Besar dan Sulit Bersaing | KONTAN News

Summary

The retail sector in Indonesia faces a wave of store closures, with GS Supermarket, a chain selling Korean food products, announcing the closure of all its outlets by May 2025. High operational costs and competition from online stores are major factors in these closures, alongside geopolitical issues and weaker consumer purchasing power. Despite the struggles, the retail industry isn't collapsing, with new stores opening in smaller cities. Experts suggest government stimulus to support consumer spending, as retail sales during Ramadan and Lebaran 2025 have fallen short of expectations.

Takeaways

• 😀 GS Supermarket, a retail chain selling Korean food products, announced the closure of all its stores by the end of May 2025.
• 😀 High operational costs are one of the main reasons behind the closure of several retail stores, making it difficult for businesses to sustain their operations.
• 😀 Competition with online stores is contributing to the decline in physical retail businesses as consumers prefer shopping online.
• 😀 People are becoming bored with in-store shopping and are increasingly turning to online platforms (ICAMERS) for their shopping needs.
• 😀 Geopolitical conditions and trade wars are weakening consumer purchasing power, which has further impacted retail sales.
• 😀 Despite the closure of many retail outlets, the retail industry is not entirely dead, as new retail stores are opening outside major cities.
• 😀 Economic growth is expected to slow down in the second quarter of 2025, affecting consumer behavior and retail performance.
• 😀 The chairman of the Indonesian Retail and Shopping Center Association (Himpunan Peritel dan Penyewa Pusat Perbelanjaan Indonesia) calls for government stimulus to support consumer spending.
• 😀 Recent months have seen a wave of retail store closures, including prominent retailers like Lulu Hypermarket, Matahari Department Store, and Alfamart.
• 😀 Retail sales during the Ramadan and Lebaran period of 2025 have underperformed compared to the previous year, with fast-moving consumer goods sales falling short of expectations.

Q & A

What is the main reason behind the closure of GS Supermarket's stores?

GS Supermarket is closing its stores due to high operational costs, which made it difficult for management to continue business. The competition from online stores is also a contributing factor.

What impact has the shift to online shopping had on physical retail stores?

The shift to online shopping has led to a decline in foot traffic to physical stores. Consumers have become more inclined to shop online rather than visiting physical retail locations.

How does the current geopolitical situation contribute to the weakening of consumer purchasing power?

The ongoing trade wars and geopolitical conditions are impacting economic stability, which in turn weakens consumer purchasing power, making people less likely to spend on retail products.

What does Budiharjo Idwanah suggest as a possible solution to support consumer purchasing power?

Budiharjo Idwanah urges the government to provide stimulus measures to help improve consumer purchasing power and support the retail sector during challenging times.

Which retail stores have recently closed, as mentioned in the script?

Recent closures include GS Supermarket, Lulu Hypermarket, Matahari Department Store, and some Alfamart outlets.

What does the retail association say about the sales performance during Ramadan and Lebaran 2025?

The retail association, Asosiasi Pengusaha Retil Indonesia, reports that sales during Ramadan and Lebaran in 2025 were lower than expected, especially in fast-moving and summer goods.

What is the outlook for retail growth in the second quarter of 2025?

The retail growth is expected to remain slow in the second quarter of 2025, as economic growth is predicted to continue its sluggish pace.

How is competition from online stores affecting the retail industry?

Competition from online stores has intensified, causing more customers to shop online instead of in physical stores, which has been a significant challenge for traditional retailers.

What is the general state of the retail industry despite store closures?

Although many stores are closing, the retail industry is not entirely dead. New retail outlets continue to open in smaller cities, showing signs of growth in certain areas.

How does the retail industry's performance during Ramadan 2025 compare to previous years?

The performance of the retail industry during Ramadan 2025 has been weaker compared to the previous year, with sales falling below expectations.