Aprindo: Buying and selling online is not a major factor in the retail business being closed

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Chairman of the Indonesian Retail Entrepreneurs Association (Aprindo) Roy Nicolas Mandey explained, business online not the main factor closing the retail business offline in Indonesia. According to him, business online just crushed retail offline 1,4 percent.

"In the USA, business online "It already took 11,8 percent and in China it took 9,8 percent, while in Indonesia it has not crushed a physical store," he said when contacted. Time, Monday, October 24, 2017.

Roy's claim is data from global management consulting firm AT Kearney. According to data from the company, with a total market potential in Indonesia of 8,9 million people and a retail business of US $ 320 billion, business online only contributed US $ 4,89 billion.

Until now, Roy claimed to know the plan to close Lotus Department Store owned by PT Mitra Adiperksa Tbk (MAP) from the media. Until this news was circulated, he admitted that he had not received an official statement from MAP.

Although dismissing business online as one of the factors weakening the physical retail industry, he admitted that the current condition of the retail industry is indeed in a period of recovery after the low growth of the retail industry in the first half of this year. Roy claims that growth has not reached four percent, which is only around 3,75 percent.

Furthermore, he said that retail entrepreneurs are still struggling to be able to generate performance from the first semester yesterday. One of them is by redefining the retail industry anomaly.

What Roy meant was to redefine it like reviewing the location of sales. "This location is the main thing to consider when first opening a retail location," he said.

According to him, the review is related to the availability of consumers and the market at the location department store. He explained, if consumers around the mall location were saturated and insignificant, relocation would be carried out.

Industry Minister Airlangga Hartarto also acknowledged that one of the main requirements for retail businesses to survive is location. When meeting with reporters yesterday, he explained, if a retail business wants to compete, its outlets must be in the right location.

However, according to Airlangga, it sometimes happens shifting (shifting consumers and markets from the previous location) at the location of the outlets are. This shift, he said, had occurred in the case of the closure of the Matahari Department Store store.

Previously, rumors were circulating about the closure of PT MAP's Lotus Department Store. The number of outlets that will close is 100 outlets. If Lotus is really closed, department store This is a retail outlet after Seven Eleven, Ramayana, and Matahari, which closed several outlets this year. As the business fades department store, business online continued to show transaction growth.

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