From left to right, Ishak Chandra, Managing Director of Corporate Strategy and Services at Sinar Mas Land; Michael Widjaja, Grup CEO at Sinar Mas Land; Terence Donald O’Connor, Executive Director and Grup CEO from Courts Asia and Roy Santoso, Country CEO of Courts Retail Indonesia. They were at the ground breaking of Courts Megastore at BSD City. (Photo courtesy of Sinar Mas Land).
Second Courts Store Begins Construction
JANUARY 29, 2015
Courts Asia, the operator of retailer Courts Megastore, began with construction of its second outlet in Indonesia on Thursday, as the company races to tap into the country’s growing middle-income group.
The three-storey structure will boast 20,400 square meters of retail space in Bumi Serpong Damai, a satellite city located south of Jakarta, said Terence Donald O’Connor, Courts Asia’s executive director and group chief executive.
That would dwarf Court’s first store in Bekasi, which offers 12,000 square meters of soft retail space and is currently the biggest Courts Megastore in Southeast Asia.
The retailer said it maintains a minimum standard store size of 5,000 squares meters in order to benefit from the economies of scale through sales volume.
Courts Asia staged an event to symbolically mark the beginning of construction on Thursday, along with its developer, Sinar Mas Land.
“We are looking forward to having a substantial presence in the heart of BSD City, with its bustling and vibrant residential and business environment, accessible location and high population density,” O’Connor said in his opening speech.
Courts expects the BSD City store could start operation by the end of this year.
The outlet will receive an additional 6,610 square meters in space for a support office and regional distribution center, O’Connor added.
The executive director declined to elaborate on the company’s investment in the new store, revealing only that the company spent some $15 million in initial investment for the Bekasi outlet.
Since it first entered the Indonesian market last year, Courts Megastore has been competing to attract the nation’s middle-class consumers against heavyweight rivals such as Ace Hardware and Electronic City.
The company said in October that it plans to open up to 12 more outlets in the Greater Jakarta area, including the BSD City store.