Modern Retail Collapses, Trade Minister Budi: People's Shopping Patterns Change

JAKARTA - The Minister of Trade (Mendag) Budi Santoso revealed the causes of modern retailers such as supermarkets and many store departments who died.

One of them is due to people's spending patterns that have changed.

This was conveyed by Budi after discussing with the Indonesian Shopping Center Management Association (APPBI) regarding the causes of modern retail, many have fallen or went out of business.

Budi said that usually consumers, especially mothers, can reply every two weeks or once a month.

Now, he continued, they are shopping daily at modern retailers located near their settlements.

According to him, this changing shopping pattern affects modern retail income. He said consumers today tend to prefer shopping at small retailers or grocery stalls.

"Now it's just spending for a day's needs, just two days. Finally what? Finally, shopping for the closest modern retail," he said at the Ministry of Trade office, Jakarta, Wednesday, June 4.

In addition, Budi said, it was also found that consumers prefer shopping places that offer other experiences, such as entertainment venues.

"It turns out that modern retail is just selling, yes, there is no experience there, there is no journey there. Yes, he will definitely lose to MSMEs," said Budi.

Budi said, as well as the department store which is closed because they only sell and do not provide a place to gather.

This makes the department store no longer attractive to consumers.

Therefore, continued Budi, modern retailers need to improve by making transformations following the trend that is happening in the industry.

"If a mall, the department store is just a place to shop, there is no place, for example to eat, hang out, collect, it will be empty of visitors. It might be a picture that we should also be able to follow the existing trends," he said.