Makro to open four new stores this year

Leony Aurora, The Jakarta Post, Jakarta

Dutch giant wholesaler Makro plans to open four new outlets this year and will remodel all of its existing stores to accommodate a wider range of fresh foods.

President of PT Makro Indonesia Simon Collins said at the opening of the remodeled fresh food area in Makro Pasar Rebo, East Jakarta, on Tuesday that a new store, located in Palembang, was already under construction and would open in April.

"We are still considering the locations of the other three," he said.

Retailers, supermarkets and hypermarkets have announced plans to expand their networks to capitalize on rising domestic consumption, the major driver of Indonesia's economic growth of 4.1 percent last year.

Matahari, the biggest retailer by sales, plans to open eight hypermarkets, while French giant Carrefour intends to add four stores to its chain this year.

Aside from building new stores, Makro -- with 13 outlets spread across greater Jakarta and other major cities in Indonesia -- also plans to expand its stores' fresh food areas.

This move is aimed at satisfying its hotel, restaurant and catering customers.

Makro Pasar Rebo's fresh food area -- which serves as a pilot project -- has been stretched by 35 percent from 815 square meters to 1,100 square meters, while its collection has been expanded from 1,000 articles to about 1,700 articles. The remodeling cost the company Rp 7 billion (US$828,402).

In the following three or four months, more articles would be added based on the requests of customers, said Simon.

Commercial director of food Kuswanto Gunadi said that hotel, restaurant, and catering businesses required quality and continuity. "To ensure that, we cannot depend on one supplier for one item," he said.

"For Jakarta stores alone, we have three suppliers (for each item)," he added.

At present, the portion of fresh foods from total sales was slightly less than 25 percent. "(With the remodeling) fresh food is expected to contribute more than 25 percent of the total sales," he added, although he declined to provide a specific target.

All existing outlets will be redesigned, although this year the other five stores in greater Jakarta and the store in Denpasar are priorities. New stores will be constructed using the new design.

Simon said that sales and profits last year increased and were also expected to increase this year. He declined to provide any figures.

Makro launched its first store, located in Pasar Rebo, in September 1992. It has maintained its concept as a "cash and carry" wholesaler open only to members, which have amounted to approximately 500,000 people.