Business School student says hypermarket outlets must expand to improve the retail sector
24 Apr 2013
BISNIS.COM, JAKARTA - A retail analyst remains optimistic about the prospects of the French hypermarket format in Indonesia's retail sector. This is due to the hypermarket's extensive range of products with additional offerings of fresh food and beverages all housed in a modern setting.
Georges Furone-Defforey, a Master of Commerce student at the University of Sydney Business School, who worked as consultant intern at PT Carrefour Indonesia, said the hypermarket businesses must continue to expand with additional outlets in order to improve the retail sector.
"Hypermarkets have a future in Indonesia, because they not only serve consumers' shopping needs, but also offer food and beverages sold in the stores," said Mr Furone-Defforey who visited the Bisnis Indonesia office on 3 April 2013.
Carrefour hypermarkets in Indonesia today, totalling 83 outlets, are expected to continue to grow and expand into a number of regions in the country.
According to Mr Furone-Defforey, while "hypermarket businesses continue to invest and plan, they should forecast whether they will be able to last for another 20 years".
"Investing in a hypermarket requires funds of millions of US dollars while the return of capital per year is only about three to four per cent," he added.
The leading hypermarket in Indonesia, Carrefour, has now changed ownership. The originally French hypermarket which was established with 100 per cent foreign capital is now wholly owned by CT Corp through Trans Retail, led by Indonesian businessman Chairul Tanjung.