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.