ocal retail firm PT Matahari Department Store has announced that it will close two of its outlets in Mangarai and Blok M -- both in South Jakarta – because of declining sales.
“The sales performance of the two outlets has missed the target,” said corporate secretary and legal director Miranti Hadisusilo over the weekend as reported by kompas.com.
He said the closure would take place late this month and unsold items would be sold at discounted prices of up to 75 percent.
Read also: No improvement in demand, retail giant Matahari says
Miranti stressed that her company would consider opening other outlets – in Java and outside Java.
Meanwhile, Indonesian Shopping Centers Tenant Association (Hippindo) chairman Budihardjo Iduansjah said offline outlets had to face unfair competition from online shops.
“We sell goods and pay taxes but so far online shops are not regulated. There is no control over them,” Budihardjo said, adding that consumers knew that buying through online shops was cheaper.
He said online shops expended less money on costs because they did not pay taxes on the goods they sold and also employed fewer people.
He wants the government to immediately regulate online shopping.
Meanwhile, National Development Planning Board (Bappenas) head Bambang Brodjonegoro said the emergence of online shopping outlets should be accepted by businesspeople.
“The change has happened and businesspeople have to face it. You have adjust yourselves,” he added. (bbn)
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