Traditional Retail Dominates Indonesia's Retail Sales Sector

Economics & Macro

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Reza Pahlevi 12/07/2022 15:20 WIB

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In 2021, there were 3.57 million traditional retail outlets in Indonesia. This number is significantly larger than the 38,000 minimarkets.

Number of Retail Outlets in Indonesia by Type (2021)

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Traditional Retail Dominates Indonesia's Retail Sales Sector

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Number of Retail Outlets in Indonesia by Type (2021)

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Retail sales in Indonesia are still dominated by traditional retail. This is evident from the number of outlets and their sales value, which are significantly higher than those of modern retail outlets.

According to Euromonitor data compiled by the United States Department of Agriculture (USDA), in 2021 there were 3.57 million traditional retail outlets in Indonesia.

In that year, the total sales value of traditional outlets reached US$53.6 billion, while total sales of modern retail outlets were only US$18.05 billion.

Despite its dominance, the number of traditional retail outlets has decreased by approximately 1 million units compared to four years ago. In 2017, the number of traditional retail outlets in Indonesia was still around 4.57 million.

On the other hand, the number of minimarkets has increased, although not significantly. Euromonitor recorded 31,488 minimarkets in Indonesia in 2017, and this number increased to 38,323 outlets in 2021.

Meanwhile, in 2021, there were 1,411 supermarket outlets, 358 gas station retail outlets, and 285 hypermarket outlets. The total number of these three types of outlets has decreased since 2019.

Overall, Indonesian retail sales have also declined in recent years, especially after the pandemic.

In 2019, the total value of national retail sales was still US$115.01 billion, but in 2021 it decreased to US$71.64 billion.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Traditional Retail Dominates Indonesia's Retail Sales Sector

Traditional Retail Dominates Indonesia's Retail Sales Sector

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