The Jakarta Post
Fetty Kwartati, MAP's head of corporation said the millennial generation's shopping trends have shifted from department stores to specialty outlets. The change was apparently followed by consumers in Indonesia. (Shutterstock/Martin Good / Shutterstock.com)
Lotus Department Store and Debenhams in Indonesia are set to close down by year's end, as announced by overseeing lifestyle retail giant PT Mitra Adiperkasa (MAP).
In a statement, MAP said the closure of the outlets responded to global retail trend changes, as reported by tempo.co, with Lotus slated to shut down this month and Debenhams at the end of the year.
Currently, MAP is consolidating the company's department store business and focusing on the development of the SOGO, SEIBU and Galeries Lafayette outlets, the statement added.
MAP head of corporation Fetty Kwartati said the millennial generation's shopping trends have shifted from department stores to specialty outlets. The change had been apparently followed by consumers in Indonesia. "In line with market trends, MAP will continue to invest in active business, fashion, and food and beverage," Fetty said on Wednesday.
She added that Indonesia also saw significant growth in the e-commerce industry, which affected offline stores. Last year, MAP launched an online store, MAP E-MALL, a platform where the company would expand its online-to-offline business as part of its aim to become a leading multichannel retailer in Asia, she added.
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Performance results were positive in the first half of this year, followed by strong financial performance in the third quarter, she said. "We believe this strategic initiative will support the company's growth in the long term and increase shareholder value."
The news that Lotus Department Store, located on Jl. Thamrin in Central Jakarta, will close had reportedly made employees anxious. Speaking to tempo.co, one of the clerks said they felt hopeless after hearing the news about the store's expected closure at the end of the month.
The employee, who chose to remain anonymous, had been informed that the closure would result in a termination of employment. "The employees at Lotus would most definitely be fired. Where would we be reassigned? All the stores would be closed." (liz/kes)