JC Penney's final sale attract bargain hunters

JAKARTA (JP): Hundreds of bargain hunters have flocked to JC Penney outlets in Jakarta and Tangerang to take advantage of huge discounts following the company's decision to close down its Indonesian operation.

The huge discounts at JC Penney's three remaining stores -- Mal Taman Anggrek in West Jakarta, Mal Pluit in North Jakarta and Lippo Karawaci, Tangerang -- began last month.

"The shopping spree is scheduled to end on Dec. 31, the last day of JC Penney's operation in Indonesia. We will no longer operate here and these are the last discounts we can give our customers," Minfu, the store manager at Karawaci, told The Jakarta Post yesterday.

All items, including jeans, shirts, overcoats, jackets and tuxedos, are being sold at huge discounts, ranging from 50 percent to 70 percent,

For local, non-JC Penney merchandise, the discounts are between 20 percent and 50 percent.

"To date we've sold 60 percent of our merchandise which was originally priced between Rp 30,000 (US$5) and Rp 900,000. During this sale we intend to 'give it away' to buyers," Minfu said.

Since the sale was announced, the three outlets have been inundated with frenzied buyers and some even shopped until they dropped.

"The shops are open from 10 a.m. to 10 p.m. so I think the shoppers have a lot of time to buy stuff."

Rika Sumampow, a customer at the Mal Taman Anggrek store, said that she had spent up to Rp 1.7 million in the past 10 days.

"Since I heard about the sale, I've come back and forth four times."

When interviewed, she was still trying to find a jacket for herself and another for her husband.

"This sale falls at the right time (because of the festive season). The price, for me, is incredibly low. Almost the same price as we see in Matahari department stores," the 28-year-old woman said.

Another buyer, 19-year-old Reza, said that he never thought he could afford to buy a jacket -- with an original price tag of Rp 750,000 -- in a fancy store.

"Only because of the sale can I afford to buy one. Next time I don't know. I don't think I could afford it." Reza got a 70 percent discount on the jacket.

JC Penney -- a giant retail chain -- decided to pull out of Indonesia due to the impact of the monetary crisis, which has affected most businesses here.

"We started this business two years ago, targeting middle- to upper-class buyers as our customers. But maybe because of the saturated market -- due to the mushrooming of retail chains here coupled with the impact of the currency crisis -- the owner chose to close them down," Minfu said.

Most JC Penney outlets, such as those in Plaza Senayan in Central Jakarta, Pondok Indah in South Jakarta and Kelapa Gading in East Jakarta, were closed down months ago, he said.

A customer assistant at the JC Penney store in Mal Anggrek expressed his concern over the decision to shut up shops in Indonesia

"Many of us probably have to go. The management's representative has announced that we are to be transferred to other jobs but, until now, nothing is certain," Sukiman said.

Reports said that some 400 workers have been hired since JC Penney opened up stores here.

Minfu said that he will be transferred to Multipolar, the local partner of JC Penney, which established the chain in Indonesia with foreign partners Wal-Mart and JC Penney, in 1995.

"I was lucky to be able to keep my job. The most important thing now is to help the workers by transferring them to Multipolar's subsidiaries."

"Right now we are concentrating on having a successful closing down sale. So we hope that at least people really can see the quality of the products, despite the enormous discounts we are giving." (edt)