Sunday, December 3, 2023

Outlets shut down: Are retailers facing doomsday?

Reading Time: 3 minutes
Journalist IBP





The closing down of Transmart’s 12 outlets has affirmed the tight competition among retailers and the shifting of consumers behavior. Transmart is not the first player in the retail industry that had to close down its outlets. Giant, a hypermarket chain originated from Malaysia, permanently closed down its business in 2021.

Economist at the Center of Economic and Law Studies (Celios) Bhima Yudhistira said the public currently have a variety of shopping options. They can shop at modern retail stores in their neighborhood to online shopping where goods are delivered directly to their houses.

“This convenience and efficiency make people less interested to go shopping at hypermarkets,” he said, as quoted by on February 2, 2023. “With more choices, the more competitive and fiercer the competition.”

The digitalization in banking and financing sector has helped consumers at ease to shop online. Meanwhile, retail industry has yet to rebound from the impact of the COVID-19 pandemic. Those two factors contributed to the closure of retailers.

Fierce competition from online shopping

Despite closing down its 12 outlets, Transmart, which is owned by conglomerate Chairul Tanjung, still operates its remaining 83 stores across Indonesia. Additionally, the company reduced the number of employees to help it survive.

According to Transmart Carrefour Vice President of Corporate Communication Satria Hamid, it was the impact of the pandemic. The outlet closing was common in the retail industry, which also affected most hotels and restaurants nationwide, he added.

“Since 2020, people have become more comfortable by shopping online. This is also our challenge to attract people to visit our outlets again,” Hamid said as quoted by Kontan on February 5, 2023. The company has provided an online shopping option for its consumers through

Transmart Carreour was one of the largest retail outlets in Indonesia with dozens of branches and thousands of workers. In 2010, PT Trans Retail Indonesia acquired 40% shares of PT Carrefour Indonesia worth US$ 300 million. The remaining shares were owned by Carrefour SA at 39%, Carrefour Nederland BV at 9.5% and Onesia BC at 11.5%.

In 2013, CT Corp took over the whole shares of Carrefour Indonesia, making it the sole shareholder. The acquisition of the remaining 60% shares cost US$ 750 million. The company then rebranded into Transmart and in 2018, it gradually expanded and had a total of 95 outlets.

Giant’s permanent closure

Before Transmart, Giant Indonesia, which is owned by PT Hero Supermarket Tbk, already suffered from the tough competition among retailers and closed down all 75 outlets by July 2021.

Hero took a drastic change by focusing more on the expansion of Swedish furniture brand IKEA.

“The company is also considering converting a number of Giant outlets into Hero Supermarket outlets,” said Director Hardianus Wahyu Trikusumo on May 25, 2023.

He said this was the company’s response to the dynamics of market changes to adapt and switch consumers behavior from hypermarkets to supermarkets or minimarkets. The business closure prompted the company to lay off its 15,000 employees.

“All Giant employees were affected by this decision. We are still considering the number of outlets that will be converted into IKEA or Hero Supermarket outlets,” Diky Risbianto, Hero Head of Corporate and Consumer Affairs, told CNBC Indonesia on May 26, 2021.

Other retailers face similar fate

Apart from Transmart and Giant, there are other retailers who were forced to close down some or all their outlets.

  • PT Matahari Department Store Tbk

The country’s largest retail company closed down 25 of its 148 outlets, which are spread in 79 cities. Matahari has tried to cope with the shift in the consumers’ shopping patterns by allowing them to shop online through channel.

  • PT Tozy Sentosa

The company, which ran Centro Department Store, was declared bankrupt by the Central Jakarta District Court on May 17, 2021. However, Centro still operates its 12 outlets in the Greater Jakarta, West Java, Central Java, East Java, Yogyakarta, Bali and North Sulawesi. The company also goes online at to fulfill its consumers’ needs.

  • PT Golden Anugerah Sejahtera and PT Golden Prima Retailindo

Golden Truly department store was once a hype place for Jakartans in the 1980s and 1990s. However, lack of shoppers forced the company to close down its business in December 2020. The management decided to shift into marketplaces of Shopee and Tokopedia to meet their consumers’ demands.

Journalist IBP






We will provide you with an invoice for your reimbursable expenses.


New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.


$550 USD/Year


$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.


The government is advised to exercise caution in developing nuclear power plants (NPPs) as their development poses various risks that require careful consideration.
Presidential and vice-presidential candidate Prabowo Subianto and Gibran Rakabuming Raka have outlined their vision to construct 10 innovation cities across Indonesia if they emerge victorious in the 2024 Presidential Election.
The government plans to encourage larger exports to non-traditional markets such as India, Pakistan, and Mexico. Indonesia’s exports have traditionally been dominated by China, the United States, and European countries. 
The Corruption Eradication Commission (KPK) is currently investigating three cases of alleged corruption in the Ministry of Agriculture (Kementan), involving the procurement of cattle, horticulture, and extortion.
PT PGN Tbk, a Subholding Gas under Pertamina, is committed to enhancing its responsiveness to customer complaints by implementing various initiatives.
The official establishment of the Comprehensive Investment and Policy Plan (CIPP) within the Just Energy Transition Partnership (JETP) marked a significant milestone in Indonesia’s move towards achieving net-zero emission.