Some shopping centers fail amid tight battle<\/p>\n
JAKARTA (JP): Many shopping centers have lagged behind the
\nrapid growth in the Indonesian retail industry because they lack
\nproper strategy and creativity.<\/p>\n
Some shopping centers, like Ratu Plaza and Aldiron Plaza in
\nSouth Jakarta, and Menteng Plaza and Atrium Plaza in Central
\nJakarta, now struggle to draw tenants let alone shoppers.<\/p>\n
In the l980s, Ratu Plaza was a prestigious shopping center
\nwhere Jakarta's most affluent customers spent their money. It was
\nalso a popular place for expatriates who lived and worked nearby
\nthe shopping center.<\/p>\n
Ratu Plaza, managed by PT Ratu Sayang International, consists
\nof an office block, a luxurious apartment building, a cinema and
\nentertainment complex, and a shopping center.<\/p>\n
In the past, Ratu Plaza's tenants ranged from exclusive
\nboutiques selling brand-name fashion items, watches and jewelry
\nto local retailers Matahari Department Store and later Hero
\nsupermarket. Ratu Plaza's other attractions were electronic,
\nsports and hobby stores.<\/p>\n
But Ratu Plaza has now lost its previous charm. Many shops are
\nempty and its anchor tenants Matahari Department store, Benetton
\nfashion house and Gunung Agung bookstore have also left.<\/p>\n
Suryadharma Ali, secretary general of the Indonesian Retail
\nMerchants Association, said that Ratu Plaza's management was late
\nin anticipating the rapid growth in the retail industry.<\/p>\n
The opening of two major shopping complexes, Plaza Indonesia
\non Jl. Thamrin in Central Jakarta and Blok M Plaza in Kebayoran
\nBaru affected Ratu Plaza's activities. The new shopping complexes
\noffered different shopping concepts and better atmosphere. Their
\nbuildings are more impressive and luxurious, attracting larger
\ncrowds as well as potential tenants from Ratu Plaza and other old
\nshopping centers.<\/p>\n
Another mall that has failed is Atrium Plaza in Senen, Central
\nJakarta. The shopping center was designed for the middle and
\nupper class bracket and it tenants included the Japanese-
\nfranchise Yaohan department store and several international brand
\nboutiques. After only a year of operation, however, the mall has
\nfailed to attract shoppers.<\/p>\n
Location<\/p>\n
Kafi Kurnia, a retail business expert, was quoted by Prospek
\nmagazine as saying that the management of Atrium Plaza did not
\nconsider location an important factor. Senen has an image as a
\ncrowded place plagued by traffic jams and a high crime rate. Many
\npeople are therefore reluctant to visit. The lack of visitors has
\nforced many tenants, including anchor tenant Yaohan, to close
\ntheir outlets.<\/p>\n
\"Operating a shopping center is very difficult. It requires
\ninnovation and creativity in order to meet changing customer
\ndemand,\" Suryadharma said.<\/p>\n
Shopping center owners must have bold strategies to keep up
\nwith current business trends in both Indonesia and the world, he
\npointed out.<\/p>\n
Suryadharma said that the trends set by Western countries will
\nspread worldwide, including Indonesia. The shopping mall concept
\nis derived from the United States, Japan and Europe, was his
\nexample.<\/p>\n
\"The growing number of shopping malls in the city has forced
\nlocal entrepreneurs to change their business concept, otherwise
\nthey could hardly survive,\" he assured.<\/p>\n
Th Antonius, a property observer, added that a number of
\nfactors influence the retail industry. The factors include
\nlocation, business orientation, building design, tenant mix and
\nmanagement.<\/p>\n
Location, he said, plays an important role in determining the
\nsuccess of a shopping center. Nobody will come to a shopping
\ncenter if it is located in a crowded area, he said.<\/p>\n
He also said that business orientation will help shopping
\ncenter owners decide their target markets. Appropriate building
\ndesign and tenant mix is also significant in attracting potential
\ncustomers.<\/p>\n
\"But the most important thing lies in the management. Poor
\nmanagement will ruin a shopping center,\" he said. (raw)<\/p>",
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