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Jakarta Post

Analysis: Does spending more and visiting less make retail sense?

  • Debnath Guharoy

    Consultant

Jakarta   /   Tue, June 8 2010   /  10:49 am

An occasional walk through some of Jakarta’s high-end shopping malls always makes me wonder how some of the shop-owners pay their bills. You can see the bored staff, you can hear the air-conditioner humming, you can almost feel the losses mounting because there isn’t a shopper around. It’s a business I don’t understand. When I look at the information produced by the Roy Morgan Single Source survey, I wonder who’s paying the bills for all those glossy designer-label stores.In 2006, 21 percent of the population had visited a shopping mall in the “last four weeks”. This year, it’s down to 14 percent. In 2006, 15 percent of the population had actually bought something at a shopping mall. This year, it’s down to 10 percent. Even though the country’s population is growing each year, the number of visitors as well as buyers, are actually declining. Despite that trend, some m...