Alfa and Indomaret Continue to Expand Their Number of Outlets

Several retail stores have been forced to close due to unprofitability. One example is 7-Eleven, which closed all its stores at the end of June. Ramayana also closed some of its stores, including one in the Blok M area, and Hypermart was forced to close several stores, resulting in employee layoffs (PHK).

However, Alfamart, Alfa Midi, and Indomaret have continued to expand their store networks. By focusing on greater proximity to consumers, Alfamart and Indomaret have managed to dominate the minimarket sector. Data from Nielsen Retail Audit, presented by PT Sumber Alfaria Trijaya Tbk, shows that Alfamart's stores increased to 12,710 units in March 2017 from 12,456 units in January 2017. Similarly, Alfa Midi and Indomaret also saw an increase in the number of stores in March 2017 compared to January 2017.

Conversely, Circle K, Hypermart, Giant Ekspres, Ramayana, and others saw a decrease in the number of stores in March 2017 compared to January 2017. Intense competition and changing consumer shopping habits, along with the rise of online shopping, are forcing retailers to innovate in order to survive in the retail market.