Thai retailer ventures into Indonesia
Indonesia’s rapidly expanding economy and increasingly sophisticated retail market has drawn the attention of Thailand’s Central Retail Corporation (CRC), which plans to add the country to its regional network by opening its first branch of department stores in Jakarta in 2014.
The Indonesian outlet will bring the total amount of department stores in the company’s portfolio to 18, including 14 in Thailand, two in China and another in Europe.
Part of Thailand-based Central Group of Companies, the retail company has reserved $19.5 million for its new Central Department Store, CRC Chief Executive Officer Tos Chirathivat said according to a press release on July 25.
“We recently signed a leasing agreement with PT Grand Indonesia to open our first Indonesia Central Department Store at Grand Indonesia Mall. The store will trade on 21,000 square meters,” he said.
“The regional expansion conforms to the company’s main strategy by tapping into opportunities from the ASEAN Economic Community (AEC) coming into effect in 2015,” Chirathivat added.
A recent economic development report released by the Indonesian government forecast growth in the third quarter of 2012 to reach 6.3 per cent, making the vast island nation the fastest growing in the region.
Increased economic prosperity to this tune will continue to feed into higher wages, stimulating the rising middle class to seek out modern retail outlets.
Last December, consumer confidence hit a six-month high, according to the Danareksa Research Institute, a Jakarta-based organisation, as reported by the Jakarta Post. This led the index to rise 0.2 points to 91.6, suggesting an optimistic consumer culture.
Recent years have sown the seeds for sophisticated retail in Indonesia, with five projects being completed in 2011. Analysts predict that Indonesia’s growing middle class – expanding 10 to 20 per cent annually – will offer potential to transform the country into a shopping tourism destination.
Success, however, is only seen as becoming achievable after accessing the correct segment. Furthermore, last year traffic congestion and already existing vacant retail space lead Jakarta authorities to enact a moratorium on issuing construction permits for shopping centres larger than 5,000 square metres.
Competition will prove to be palpable for new entrants as Japan’s Sogo, Japan’s Seibu, United Kingdom’s Debenhams and Singapore’s Metro have already established a presence.
Indonesia’s rapidly expanding economy and increasingly sophisticated retail market has drawn the attention of Thailand’s Central Retail Corporation (CRC), which plans to add the country to its regional network by opening its first branch of department stores in Jakarta in 2014. The Indonesian outlet will bring the total amount of department stores in the company’s portfolio to 18, including 14 in Thailand, two in China and another in Europe. Part of Thailand-based Central Group of Companies, the retail company has reserved $19.5 million for its new Central Department Store, CRC Chief Executive Officer Tos Chirathivat said according to a press...
Indonesia’s rapidly expanding economy and increasingly sophisticated retail market has drawn the attention of Thailand’s Central Retail Corporation (CRC), which plans to add the country to its regional network by opening its first branch of department stores in Jakarta in 2014.
The Indonesian outlet will bring the total amount of department stores in the company’s portfolio to 18, including 14 in Thailand, two in China and another in Europe.
Part of Thailand-based Central Group of Companies, the retail company has reserved $19.5 million for its new Central Department Store, CRC Chief Executive Officer Tos Chirathivat said according to a press release on July 25.
“We recently signed a leasing agreement with PT Grand Indonesia to open our first Indonesia Central Department Store at Grand Indonesia Mall. The store will trade on 21,000 square meters,” he said.
“The regional expansion conforms to the company’s main strategy by tapping into opportunities from the ASEAN Economic Community (AEC) coming into effect in 2015,” Chirathivat added.
A recent economic development report released by the Indonesian government forecast growth in the third quarter of 2012 to reach 6.3 per cent, making the vast island nation the fastest growing in the region.
Increased economic prosperity to this tune will continue to feed into higher wages, stimulating the rising middle class to seek out modern retail outlets.
Last December, consumer confidence hit a six-month high, according to the Danareksa Research Institute, a Jakarta-based organisation, as reported by the Jakarta Post. This led the index to rise 0.2 points to 91.6, suggesting an optimistic consumer culture.
Recent years have sown the seeds for sophisticated retail in Indonesia, with five projects being completed in 2011. Analysts predict that Indonesia’s growing middle class – expanding 10 to 20 per cent annually – will offer potential to transform the country into a shopping tourism destination.
Success, however, is only seen as becoming achievable after accessing the correct segment. Furthermore, last year traffic congestion and already existing vacant retail space lead Jakarta authorities to enact a moratorium on issuing construction permits for shopping centres larger than 5,000 square metres.
Competition will prove to be palpable for new entrants as Japan’s Sogo, Japan’s Seibu, United Kingdom’s Debenhams and Singapore’s Metro have already established a presence.
