Indonesian trade minister attributes retail outlet closures to shifting consumer habits

Xinhua
08 May 2025, 18:45 GMT+10

JAKARTA, May 8 (Xinhua) -- Indonesian Trade Minister Budi Santoso said Thursday that changing consumer shopping patterns have led to the closure of several retail outlets in the country.

Santoso was responding to recent shutdowns of retail stores in Indonesia, including South Korea-based GS Supermarket and Lulu Hypermarket based in the United Arab Emirates.

He cited two key factors behind the trend. First, traditional retail stores struggled to compete with online platforms. Second, consumer lifestyles have evolved. While people once shopped for groceries every one to two weeks, they now tend to make daily purchases.

"Retailers can only survive if they adapt to customer preferences," Santoso said during an event at his Jakarta office. "Malls, department stores, and modern shopping centers thrive when they offer an experience where people can shop, dine, and socialize with family and friends."

"Retailers or shopping centers that merely serve as shopping venues will not succeed," he added.

The minister emphasized that the closures were unrelated to Indonesians' purchasing power.

"The issue lies in shifting shopping patterns, not reduced spending capacity. Consumers are simply turning to other alternatives," Santoso said.

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