End Of July 2021, Get Ready To Say Goodbye To Giant Supermarket In Indonesia

Giant Supermarket outlets. (Photo: Doc. HappyFresh)

JAKARTA - Retailer PT Hero Supermarket Tbk decided to close all giant outlets by the end of July 2021. The company said it would focus more on other trademarks such as IKEA and the Guardian.

Quoted from HERO's written statement published on the Indonesia Stock Exchange (IDX) page, Tuesday, May 25, Hero Supermarket President Director Patrik Lindvall said it was following up on the strategy of all business lines of the company.

"Ikea, Guardian, and Hero Supermarket brands have higher growth potential than Giant. Like other qualified businesses, we are constantly adapting to changing market dynamics and customer trends, including the declining popularity of hypermarket formats in recent years in Indonesia; a trend that is also seen in the global market," explained Patrik.

Even so, Patrik believes that the sales of household appliances, health and beauty, and daily necessities for the upper class still have the potential to grow high.

HERO management also targets to increase IKEA outlets by four times the number of outlets by 2020 in the next two years. In addition, 100 new Guardian outlets will be opened by the end of 2022.

For the old Giant outlets, HERO plans to turn five Giant outlets into IKEA stores. Furthermore, some other Giant outlets are also considered to be converted into Hero Supermarket outlets.

Patrik added that there are currently negotiations regarding the potential transfer of ownership of a number of Giant outlets to third parties.

"We are very grateful to our employees, our customers, and our business partners who have supported Giant's business all along," patrik said.

HERO ensures that communication with all employees affected by this change will take place with empathy and respect. Not only that, Patrik ensures that the process will be fair for all business partners.

"Big decisions like this are not easy, but we believe this decision needs to be taken for the long-term interests of PT Hero Supermarket Tbk. and our employees under the auspices of the company," patrik concluded.