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A retailer bets on booming growth in smaller cities with bold expansion
MR.DIY, which entered Indonesia in 2017, has opened more than 850 stores in the country, focusing on satellite cities of Jakarta and towns across the country, where it is often the pioneering national retailer.
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A MR.DIY store opens in Soreang, West Java, on July 26, 2024. (MR. DIY/-)
W
hile chain stores in Indonesia typically concentrate on major cities where demand is strongest, MR.DIY is taking a different approach by opening outlets outside of urban centers and expanding to smaller cities across the country.
Coming from Malaysia and entering Indonesia in 2017 under PT Duta Intiguna Yasa, the home improvement and convenience retailer opened its first store in the Jakarta satellite city of Bekasi, West Java.
The company, which focuses on offering affordable products with a wide range of over 18,000 stock keeping units (SKUs), is betting on fast consumer spending growth in the country’s regions to overcome the challenges of lower spending power and logistical hurdles.
MR.DIY Indonesia commissioner Cyril Noerhadi says the firm selects locations that offer both “value and convenience” to customers.
“Our stores are strategically located to ensure that every family can find what they need easily, regardless of where they are,” he told The Jakarta Post on Sept. 24. “The expansion strategy focuses on being close to our customers, not just in terms of location but by providing products at affordable prices, whether in large cities or smaller towns.”
Since entering the Indonesian market, MR.DIY has opened an average of 100 stores a year, even maintaining this pace during the pandemic in 2020. Today, the company operates more than 850 stores across the country, all directly managed to ensure consistent service quality.
In comparison, major retailer ACE Hardware, which opened shop in Indonesia back in 1996, only operated 239 stores as of July 31. This year, the company plans to open just 15 to 20 new locations.
