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18 March 2004

 
Makro To Launch Four New Outlets in 2004

 

Dutch ‘cash and carry’ wholesaler Makro is adding four new outlets to its 13-store operations in Indonesia this year, and will also refurbish its current stores to accommodate a wider variety of fresh foods.

Speaking to reporters at the opening of Makro’s refurbished fresh food area in Makro Pasar Rebo, East Jakarta in last month, Simon Collins, president of PT Makro Indonesia said a new store is under construction in Palembang and would start business in April. While Makro had not decided on the locations of the other three stores, both its new and current outlets would adopt the same new image with bigger fresh food areas.

Makro Pasar Rebo would be Makro’s pilot project to cater to its hotel, restaurant and catering customers with bigger fresh food areas at its stores. The refurbishment, which entails a 35% increase in store space from 815 sqm to 1100 sqm, incurs a cost of 7 billion rupiahs (US$828,402).

Although fresh foods still constitute less than 25% of total sales, Kuswanto Gunadi, commercial director of food, said fresh food is likely to contribute more than 25% of total sales with the remodeling process.

The company’s Makro’s expansionist move is line with the current trend by retailers, supermarkets and hypermarkets in Indonesia to expand their networks, in view of the rising domestic consumption driven by the country’s 4.1% economic growth last year.

Both retailers Matahari and Carrefour for instance are already making plans to establish eight and four stores respectively this year.



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