Retailers see holiday sales boom

Retailers see holiday sales boom

Leony Aurora , The Jakarta Post, Jakarta

It's that time of year again, not only for employees to receive
their holiday bonuses, but also for retailers to reap hefty
profits from the shopping spree that is set to occur over the
next few weeks.

The aisles in the Jakarta outlets of French-based hypermarket
Carrefour started to get noticeably more crowded last weekend,
public and customer relations manager Dekaryono Wiranto said on
Monday.

"Seasonal products like foodstuffs and textiles -- Muslim
attire and prayer rugs -- are the most sought after items," he
told The Jakarta Post.

Based on experience in previous years, Carrefour outlets have
increased their stock by 30 percent over the last month.

"Last year, our sales went up by approximately 20 percent
around Idul Fitri," he said, referring to the Islamic holiday
that falls in mid-November this year.

While during the first days of the fasting month many people
came to buy items to make parcels to sell for Lebaran (local name
for Idul Fitri), more people are now out shopping for their
personal needs.

"The peak will come between a week and one day before
Lebaran," said Dekaryono.

Giant Dutch wholesaler Makro is also looking forward to sharp
increases in customers and sales. "Sales are currently still
normal," said Basuki Ismael, the company's senior industrial
relations manager.

During the peak, sales could shoot up by more than 40 percent,
he said.

As suppliers usually stop deliveries a week before the
holiday, Makro is carrying 50 percent more stock than usual.

Economists have said that inflationary pressures from now
until the end of the year will be stronger due to the higher
demand for goods during the Idul Fitri holiday, and Christmas and
New Year celebrations, creating concern among some that the
government's full-year inflation target of 7 percent might be
surpassed.

Retailers have largely enjoyed solid sales over the past
couple of years thanks to strong domestic consumption, the main
engine of economic growth, made possible by relatively low
interest rates and a mild inflationary environment.

To make sure that all customers have time to shop to their
hearts' content, Carrefour plans to extend its opening hours in
the run-up to the holidays. "We plan to open until midnight on
the three days up to the eve of Idul Fitri," said Dekaryono.

The Jakarta administration has announced that supermarkets
will be allowed to open until the stroke of midnight for 15 days
prior to Idul Fitri and for two days afterwards.

Vice executive director of Super Indo, Melanie Dharmosetio,
said that most of its 41 branches across the country would extend
their opening hours.

"We will be carrying additional stock for seven days after
Lebaran," she added.