Singapore's Courts Eyes Expansion Despite Retail Downturn
Jakarta. Courts Retail Indonesia, the local unit of the Singapore's retailer Courts Asia, plans to open seven more stores here by the end of 2017 as it bids to take top spot in the electronics, furniture and household appliances retail market.
"In the year since our entry into Indonesia in 2014, Courts has opened three stores and will add one more at the end of the year," Roy Santoso, chief executive of Courts Retail Indonesia, said on Thursday. "Our target is to add three stores next year and another three in 2017."
"And, just like Courts in Singapore and Malaysia, we want to become the market leader in Indonesia," Roy added.
Courts' new stores, like the three existing ones, will be located in the Greater Jakarta area, with an estimated $3 million in investment for each one, Roy said.
"Once that's done, maybe we will expand the store [network] to other areas. Currently we are exploring several potential cities, such as Surabaya, Medan and Bali," Roy said.
Indonesia retailers are going through a rough patch this year, with the country's economy growing at its slowest pace in six years, clocking 4.67 percent growth year-on-year in the second quarter. Weakening consumer purchasing power has forced some company to scale back their expansion plans and revenue targets, while the government expects full-year GDP growth of 5 percent this year, from its previous projection of 5.2 percent.
But Roy said Courts was in Indonesia for the long term. It has two stores in Bekasi, on the eastern outskirts of Jakarta, and one in Bogor, to the south of the capital. Its outlet in the Harapan Indah Bekasi area is its biggest in Southeast Asia – with 12,000 square meters of retail space – but will soon be eclipsed by the planned 13,000-square-meter Courts store in the BSD township west of the capital.
The densely populated residential area is home to competitors such as Ace Hardware and Informa, as well as a hugely popular Ikea store.
Roy said Courts was confident about taking on its rivals, citing what he called a wider range of products carried by Courts.
"At present, our stores sell 13,000 to 14,000 items, and will continue to grow in the future. More than 85 percent of the products that we sell are also locally made," he said.
Investor Daily
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