Defined by traditional, cost-effective mom-and-pop stores, this sub-sector posted an impressive USD 77.55 billion in sales in 2022.
Encompassing chain stores offering a vast product range, including groceries, fashion, electronics, and more. Indomaret and Alfamart dominate the grocery sector.
Offers a wide range of products and services online, covering everything from electronics and fashion to home goods, valued at USD 52.93 billion in 2022, is set to reach USD 86.81 billion by 2028.
The surging E-commerce sector poses a significant challenge to traditional retailers, demanding swift adaptation to technological advancements.
The retail industry's well-being is closely tethered to consumer purchasing power, rendering it vulnerable to economic fluctuations.
The sector is subject to regulatory complexities, including the burden of registration and licensing regulations, which often weigh heavily on small and medium-sized retail businesses.
Driving demand for a more extensive range of products and services, particularly from Modern Trade retailers.
Projected market value of USD 86.81 billion by 2028, is propelled by a surge in internet and mobile phone penetration.
Limited M&A activity has been observed due to the fragmented nature of the industry. Despite challenges, Indonesia's retail sector remains resilient, with government support and evolving consumer behavior shaping its future.
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