Promodes opens retail operation despite crisis<\/p>\n
JAKARTA (JP): France's Promodes Group will push forward with
\nexpansion plans in the country despite the ongoing economic and
\npolitical crises, its country representative said on Monday.<\/p>\n
Jean-Luc Montembault said it would open its third US$5 million
\nhypermarket retail operation in Jakarta at the end of July.<\/p>\n
\"Indonesia is among a few countries where this kind of
\nbusiness will develop in the future,\" he announced at a news
\nconference following the grand opening of the firm's second
\nhypermarket operation at Pluit Megamal in North Jakarta.<\/p>\n
He was convinced the hypermarket retail business would survive
\nthe economic crisis because it provided quality products at
\ndiscounted prices.<\/p>\n
\"During a crisis, customers want a discount system.\"
\nConcerning political uncertainty, Montembault said: \"We have
\nalready calculated the risk.\"<\/p>\n
Indonesia is scheduled to hold a general election on June 7,
\ntouted as the first fair and free polls after 30 years under the
\nauthoritarian rule of Soeharto. The prospect of elections has
\nraised jitters among many citizens in the wake of bloody unrest
\nand rioting in many areas nationwide. Disturbances have often
\nbeen marked by looting and arson of retail outlets.<\/p>\n
The 19-month-old economic crisis has catapulted about half of
\nthe country's more than 200 million population into poverty and
\nled to massive layoffs in major cities like Jakarta, with both
\nthe banking and manufacturing sectors in serious trouble.<\/p>\n
The French retail giant, established in 1961, now has various
\nretail operations in Europe, South America and Asia, particularly
\nIndonesia and South Korea.<\/p>\n
The group opened its first retail operation in Indonesia last
\nyear by forming a joint venture with PT Sinar Kilat Buana, a
\nretail unit of the giant Sinar Mas Group, called PT Contimas
\nUtama Indonesia. The French firm owns 51 percent.<\/p>\n
Promodes, the second French retail chain to operate in
\nIndonesia after Carrefour, provides more than 15,000 different
\nproducts at discounted prices in a shopping area covering about
\n8,000 square meters.<\/p>\n
Its first hypermarket operation outlet, called Continent,
\nopened in South Jakarta last October.<\/p>\n
Several supermarket operations have criticized its presence in
\nthe country, alleging Continent operated on a dumping strategy by
\nselling its products below manufacturer prices.<\/p>\n
Montembault denied the allegation and said the company was
\nmerely slashing profit margins in the hope it would be
\ncompensated by large sales volume.<\/p>\n
\"We'll keep our low margin strategy,\" he said. (rei)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/promodes-opens-retail-operation-despite-crisis-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }