TEMPO.CO, Jakarta - Lulu Hypermarket retail is reportedly closing down its outlets. Managing Director of Commercial Real Estate and Shopping Center Studies (CRSC) Yongky Susilo stated that the retail business has been in decline for a long time, since 2011.
"Retail growth has been in decline for a long time," said Yongky when contacted by Tempo on Monday, April 7, 2025.
He mentioned that the retail industry's growth has worsened due to being trapped in the middle-income trap condition. Moreover, he attributed it to the reduced number of middle-class citizens, aggravated by the COVID-19 crisis.
"So the sales volume is not growing. Competition is very fierce. Minimarkets are still driving growth, but only through expansion," he stated.
He stated that hypermarkets have long failed to evolve to follow the changes in consumer behavior seeking new shopping experiences. He said Hypermarkets still focus on price wars with their rivals. "There are no new innovations, so it gets boring. Shopping in large formats takes a lot of time," he said.
Previously, the Lulu Hypermarket retail chain was reported to close down soon. Several Lulu Hypermarket outlets are selling products at massive discounts.
Former President Joko Widodo inaugurated the first Lulu Hypermarket in Indonesia, which opened in Cakung on May 31, 2016. At that time, Jokowi wanted Lulu Hypermarket to be the gateway for Indonesian products to various countries. Lulu Hypermarket has an extensive network in the Middle East and Asia.
The Lulu Group International is one of the companies with a retail marketing network spread across the entire Middle East region, and had 218 outlets worldwide in 2022. During 2019-2020, Indonesia's exports to the United Arab Emirates through Lulu Hypermarket reached US$7.5 million. Some Indonesian export products included in the Lulu Hypermarket retail network are clothing, fresh fruits, paper, tableware, kitchen utensils, shrimp, and chocolate.
Eka Yudha Saputra contributed to the writing of this article.
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