Some shopping centers fail amid tight battle
Some shopping centers fail amid tight battle
JAKARTA (JP): Many shopping centers have lagged behind the
rapid growth in the Indonesian retail industry because they lack
proper strategy and creativity.
Some shopping centers, like Ratu Plaza and Aldiron Plaza in
South Jakarta, and Menteng Plaza and Atrium Plaza in Central
Jakarta, now struggle to draw tenants let alone shoppers.
In the l980s, Ratu Plaza was a prestigious shopping center
where Jakarta's most affluent customers spent their money. It was
also a popular place for expatriates who lived and worked nearby
the shopping center.
Ratu Plaza, managed by PT Ratu Sayang International, consists
of an office block, a luxurious apartment building, a cinema and
entertainment complex, and a shopping center.
In the past, Ratu Plaza's tenants ranged from exclusive
boutiques selling brand-name fashion items, watches and jewelry
to local retailers Matahari Department Store and later Hero
supermarket. Ratu Plaza's other attractions were electronic,
sports and hobby stores.
But Ratu Plaza has now lost its previous charm. Many shops are
empty and its anchor tenants Matahari Department store, Benetton
fashion house and Gunung Agung bookstore have also left.
Suryadharma Ali, secretary general of the Indonesian Retail
Merchants Association, said that Ratu Plaza's management was late
in anticipating the rapid growth in the retail industry.
The opening of two major shopping complexes, Plaza Indonesia
on Jl. Thamrin in Central Jakarta and Blok M Plaza in Kebayoran
Baru affected Ratu Plaza's activities. The new shopping complexes
offered different shopping concepts and better atmosphere. Their
buildings are more impressive and luxurious, attracting larger
crowds as well as potential tenants from Ratu Plaza and other old
shopping centers.
Another mall that has failed is Atrium Plaza in Senen, Central
Jakarta. The shopping center was designed for the middle and
upper class bracket and it tenants included the Japanese-
franchise Yaohan department store and several international brand
boutiques. After only a year of operation, however, the mall has
failed to attract shoppers.
Location
Kafi Kurnia, a retail business expert, was quoted by Prospek
magazine as saying that the management of Atrium Plaza did not
consider location an important factor. Senen has an image as a
crowded place plagued by traffic jams and a high crime rate. Many
people are therefore reluctant to visit. The lack of visitors has
forced many tenants, including anchor tenant Yaohan, to close
their outlets.
"Operating a shopping center is very difficult. It requires
innovation and creativity in order to meet changing customer
demand," Suryadharma said.
Shopping center owners must have bold strategies to keep up
with current business trends in both Indonesia and the world, he
pointed out.
Suryadharma said that the trends set by Western countries will
spread worldwide, including Indonesia. The shopping mall concept
is derived from the United States, Japan and Europe, was his
example.
"The growing number of shopping malls in the city has forced
local entrepreneurs to change their business concept, otherwise
they could hardly survive," he assured.
Th Antonius, a property observer, added that a number of
factors influence the retail industry. The factors include
location, business orientation, building design, tenant mix and
management.
Location, he said, plays an important role in determining the
success of a shopping center. Nobody will come to a shopping
center if it is located in a crowded area, he said.
He also said that business orientation will help shopping
center owners decide their target markets. Appropriate building
design and tenant mix is also significant in attracting potential
customers.
"But the most important thing lies in the management. Poor
management will ruin a shopping center," he said. (raw)