The Surge in Shop Openings at Shopping Malls Ahead of Ramadan: A Strategic Business Move
A phenomenon of retailers hastily opening new shops and stalls in shopping malls ahead of Ramadan is not an impulsive move. Behind this timing lies a deliberate business strategy designed to capitalise on the surge in consumer spending during Ramadan and through to Eid al-Fitr.
Budihardjo Iduansjah, head of the Indonesian Retailers and Shopping Centre Tenants Association (Hippindo), explained that the Ramadan and Eid period represents the largest sales momentum for the retail industry. For this reason, many business operators intentionally position the opening of outlets just before this period begins.
“When tenants appear suddenly, it’s actually not really about spontaneity. Rather, there is space to open stores specifically at the largest and most crowded event, which is Eid. So the openings are deliberately positioned before Eid,” Budihardjo told CNBC Indonesia on Monday, 2 March 2026.
According to him, tenant openings that often coincide with Ramadan frequently create the impression of being sudden. However, the process has been planned well in advance, from securing location contracts, planning stock levels, to developing promotional strategies.
Ramadan and Eid are considered crucial periods because nearly all retail categories experience increased demand. Consumers not only purchase essentials but also fashion, gift hampers, food and beverages, and various lifestyle products.
Previously, monitoring by CNBC Indonesia at shopping centres in Bekasi over the weekend (28 February-1 March 2026) showed malls packed with visitors. Observably, fashion outlets were crowded with shoppers. Shopping mall corridors that previously had only a few fashion tenants appeared increasingly crowded, with the number of clothing and fashion products for sale also expanding. They were dominated by Muslim-themed clothing.
Budihardjo noted that besides permanent stores, there are also business operators who capitalise on this momentum through bazaar or pop-up store concepts. This model is widely used for short-term promotions, particularly by online-based businesses seeking to reach consumers offline when visitor traffic increases.
“So it appears spontaneous. But there are also bazaar or pop-up stores used for promotion, and typically online operators promote offline during major events like Christmas and New Year or Eid. But Eid is the biggest,” he explained.
He described Eid as the ideal starting point or “kick off” for new stores to immediately record sales. By opening outlets approximately a month before Eid, business operators can leverage the shopping surge that begins in early Ramadan.
“So Eid is indeed a kick-off momentum. Usually they open about a month before Eid, and they can promote or clear stock. And for new stores, it’s better to position store contracts to open during the Eid momentum. Because they immediately start generating sales,” Budihardjo concluded.
This strategy is considered effective because new stores can immediately generate cash flow from their opening day. Additionally, high visitor traffic helps accelerate brand awareness among consumers without requiring excessive promotional expenditure during slower retail periods.
With this pattern, the flurry of tenant openings ahead of Ramadan is not merely a calculated seasonal trend. For retail operators, this momentum is a golden window to commence operations, accelerate inventory turnover, and optimise sales from the store’s first day of opening.