TEMPO.CO, Jakarta - Indonesia's Trade Minister Budi Santoso announced on Thursday, May 8, that shifts in consumer shopping habits have resulted in the closure of some retail stores in Indonesia. His statement came in response to the news that South Korean GS Supermarket and Lulu Hypermarket from the United Arab Emirates would be closing their doors.
As reported by Xinhuanet.com on Friday, May 9, Santoso identified two main reasons for this trend. Firstly, traditional stores are struggling to compete with online shopping platforms. Secondly, changes in consumer lifestyles; where people once shopped for their basic needs every one or two weeks, they now tend to shop more frequently, even daily.
"Retailers can only succeed if they adapt to customers' preferences," Santoso said at an event held at his office in Jakarta.
He further explained that modern shopping centers will thrive if they offer more than just shopping, providing experiences for dining and socializing with family or friends. "Retailers or shopping centers that only serve as places to shop will not be successful," he added.
The Minister also emphasized that these closures are not due to a decrease in the purchasing power of Indonesian consumers. "The issue is the change in shopping patterns, not a decline in purchasing power. Consumers are simply choosing different ways to shop," Santoso clarified.
In a post on their Instagram account @gssupermarketid, GS Supermarket informed customers to quickly use their membership points, as these points would expire on May 31, 2025.
"Special call for members, don't forget to use your membership points when shopping at GS The Fresh! as the points will expire soon on May 31, 2025," they wrote.
The comments section of the post was filled with farewell messages and expressions of sadness from customers. Some even expressed surprise at GS Supermarket's decision to close. An account named @antoniusdarwin commented, "Yahhh.. Thank you GS Supermarket.. Hopefully, you can reopen with a new concept suitable for Indonesia," they wrote.
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