Deputy Chairman of the Indonesian Retail Entrepreneurs Association (Aprindo) Tutum Rahanta said there would be several retail shops closed.
"Some friends have confirmed to me, they will close or reduce their growth," Tutum said at Warung Daun, Central Jakarta, Saturday, October 28, 2017.
Tutum said businesspeople will make efficiency if conventional retail trends begin to look fade. According to Tutum, one of the forms of efficiency is the closure of stores, as well as cutting company expenses.
Tutum said the closing of the conventional shop was not solely due to the emergence E-commerce. Tutum said the change in consumer behavior caused conventional store income to decline.
The Dean and Professor of the University of Indonesia Faculty of Economics and Business, Ari Kuncoro, said there was a change in the preferences of the middle class in shopping. According to Ari, people are now more interested in buying recreational experiences such as vacations rather than goods.
With this tendency, people save more for holiday needs. As a result, their expenditure on goods is restrained.
"So when they want to travel, they are saving and downsize. As a result, their expenditure was put to a brake first, "Ari said.