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Category: General

Retail News Asia is committed to providing both local and global retailers with the latest General Retail news throughout the Asian market. This on a daily base.

  • Hong Kong Retail Sales Rise 4.5 per Cent to HK$31 Billion in July

    Hong Kong Retail Sales Rise 4.5 per Cent to HK$31 Billion in July

    Hong Kong retail sales climbed 4.5 per cent year-on-year in July to HK$31 billion ($3.95 billion), extending the city’s growth streak to 15 straight months.

    The result held steady against the revised 4.6 per cent increase recorded in June, bringing total retail sales expansion for the first seven months of the year to 8.9 per cent.

    Online purchases expanded faster than physical store traffic. E-commerce sales reached HK$2.8 billion in July, up 9.5 per cent from a year earlier, and represented 9.1 per cent of total retail turnover in the city.

    Jewellery and luxury goods lead gains

    High-value categories drove the bulk of the monthly expansion, according to figures released by the Census and Statistics Department. Sales of jewellery, watches and clocks jumped 19.7 per cent, while electrical appliances and consumer durables rose 11.5 per cent. Medicines and cosmetics gained 7.3 per cent.

    Everyday retail lines experienced much slower momentum. Department store commodities, optical shops, and alcoholic drinks and tobacco recorded uplifts ranging between 0.5 per cent and 1.8 per cent.

    Tourism events against external headwinds

    The sustained expansion points to firming domestic household incomes and stable employment across Hong Kong, even as store operators adjust to spending shifting online. The wide performance gap between luxury spikes and subdued department store receipts indicates local consumer sentiment remains selective outside tourist-heavy categories.

    City officials are counting on an upcoming lineup of mega-events to lift inbound visitor traffic through the rest of the year, while monitoring how evolving global economic headwinds affect local consumption.

  • Siem Reap Trade Fair Opens Commercial Pathways for Local Producers

    Siem Reap Trade Fair Opens Commercial Pathways for Local Producers

    A regional trade fair in Siem Reap opened commercial channels for provincial producers seeking access to wider consumer markets. The event connects makers of domestic goods directly with retailers, wholesalers and hospitality buyers across Cambodia.

    Producers presented packaged food, agricultural goods, textiles and handicrafts to commercial buyers seeking local inventory. Direct exhibition formats give regional enterprises access to store shelves and hospitality supply chains without intermediary distributor markups.

    Connecting Provincial Goods to Supermarket Shelves

    Organisers built the platform to address distribution bottlenecks that often keep provincial goods out of modern retail networks. Direct contact with procurement managers allows suppliers to negotiate order volumes, adjust packaging and meet quality standards required by national store chains.

    Similar trade exhibitions across secondary cities in Southeast Asia have helped regional craft and food producers secure stable supermarket listings. Modern grocery operators and hotel groups in Cambodia face persistent demand for verified local products from domestic shoppers and international visitors.

    Expanding Domestic Supply Chains

    Retail chains and hospitality buyers face higher logistics costs on imported packaged goods, accelerating demand for dependable domestic alternatives. Local suppliers use the exhibition platform to align barcoding, packaging durability and batch sizes with formal retail criteria.

    Participating vendors are now fulfilling wholesale orders secured during the event as provincial trade organisers prepare follow-up sourcing sessions for the coming retail quarters.

  • Alfamart Pushes Quick Commerce and Targets 100 Stores in Bangladesh

    Alfamart Pushes Quick Commerce and Targets 100 Stores in Bangladesh

    Indonesian minimart chain Alfamart is expanding its Alfagift delivery network and preparing a 100-store entry into Bangladesh to counter slowing domestic convenience store expansion.

    The Jakarta-based operator, PT Sumber Alfaria Trijaya, is turning to digital ordering and dedicated fulfillment hubs as traditional store density approaches saturation across its home market.

    Dark stores and digital ordering

    President Director Anggara Hans Prawira confirmed that the Alfagift mobile application and loyalty platform have become central to maintaining transaction volumes. Urban shoppers increasingly order household staples and groceries through the digital channel instead of visiting neighborhood brick-and-mortar checkouts.

    To support faster fulfillment, the company is integrating dark stores into its distribution setup. These dedicated micro-warehouses shorten delivery windows and relieve pressure on standard retail outlets in crowded metropolitan areas where finding viable new retail real estate has become harder.

    South Asian expansion

    Slowing domestic retail growth has also pushed Sumber Alfaria Trijaya to seek greenfield opportunities abroad, led by a planned 100-store rollout in Bangladesh. The move marks an aggressive geographic push outside Southeast Asia as domestic store growth tapers.

    Convenience operators across the Asia-Pacific region are confronting the same ceiling. Rapid physical rollouts that drove earnings for two decades across Indonesia, Thailand, and the Philippines now deliver tighter margins, forcing traditional grocers to fight app-based delivery services on speed while exporting their store models into emerging consumer markets.

    The retailer now faces the rollout of its initial 100 Bangladesh sites while testing how deeply quick commerce can defend its domestic basket sizes against dedicated delivery platforms.

  • FamilyMart Rolls Out T-Shirt Uniforms and Relaxes Hair Color Rules in Japan

    FamilyMart Rolls Out T-Shirt Uniforms and Relaxes Hair Color Rules in Japan

    FamilyMart introduced casual T-shirt uniforms and relaxed hair color restrictions for store clerks across Japan to widen its recruitment pool. The convenience store operator replaced its traditional buttoned jackets with casual wear to make daily shifts more practical during hot summer months.

    Store employees can now dye their hair freely, removing a long-standing guideline that required natural or strictly regulated dark tones. The policy applies to both full-time store staff and part-time workers across the chain’s franchised and company-owned network.

    New dress code for store staff

    The new uniform lineup features lightweight, breathable T-shirts designed for high-turnover shift work and stock handling. Staff can wear the shirts as their standard work attire rather than layering heavy branded vests or stiff aprons over personal clothing.

    Easing appearance rules directly targets younger job seekers and student workers who frequently cited grooming mandates as a barrier to working in convenience retail. Store managers also gain flexibility to recruit older part-timers and foreign workers who prefer less formal uniform requirements.

    Labor pressures in Japanese retail

    Convenience operators across Japan are adapting store operations to manage an acute shortage of frontline labor. Rival chains Lawson and Seven-Eleven Japan have rolled out self-checkout kiosks, automated ordering systems, and revised shift schedules over the past two years to keep stores staffed around the clock.

    Relaxing dress standards represents an inexpensive retention and hiring tactic compared to sharp wage increases. Japanese retailers historically enforced strict uniform and grooming standards to present an orderly, uniform brand image to local shoppers.

    FamilyMart franchisees will complete the uniform transition across regional store clusters as autumn inventory distribution schedules take effect.

  • Bangladesh Imports from India Hit $10.96 Billion Despite Port Limits

    Bangladesh Imports from India Hit $10.96 Billion Despite Port Limits

    Bangladesh increased its imports from India to $10.96 billion in fiscal 2025-26, defying land border curbs designed to restrict cross-border shipments between the two neighbours.

    The annual import bill rose 13.9 percent from $9.62 billion recorded in the previous fiscal year, according to National Board of Revenue data. Bangladeshi exports to India dipped slightly over the same period, slipping to $1.75 billion from $1.76 billion. The figures leave Dhaka with a bilateral trade deficit exceeding $9.2 billion, with India supplying more than six times what it buys in return.

    Shifting cargo from land to sea

    Bilateral trade friction escalated following political changes in Bangladesh in 2024. Dhaka restricted yarn imports across land borders in March 2025 to shield domestic spinning mills, redirecting all Indian yarn shipments exclusively through Chattogram seaport. New Delhi responded in April 2025 by halting airport transhipment facilities for Bangladeshi garments bound for third countries, later adding land port curbs on Bangladeshi processed food, jute, furniture, and apparel.

    The administrative barriers failed to dent demand for Indian textile inputs. Bangladesh Textile Mills Association president Showkat Aziz Russell said recorded yarn imports from India doubled to approximately 300 billion taka in fiscal 2026, up from 140 billion taka a year earlier. Channeling shipments entirely through seaports brought previously informal or unrecorded overland cargo onto customs registries, inflating formal totals while keeping factory order books supplied.

    Structural imbalance in regional apparel

    Textile mills and garment factories across Dhaka and Chattogram rely heavily on Indian cotton, yarn, and fabric because of shorter freight times and buyer-nominated fabric specifications. While India is Bangladesh’s second-largest overall trading partner after China, Dhaka’s outbound shipments remain heavily concentrated in ready-made garments, which face domestic competition and strict standard compliance inside India.

    Policy analysts and industry bodies note that despite duty-free access granted under the South Asian Free Trade Area framework in 2010, the two countries have yet to build integrated supply chain agreements. Bangladesh Garment Manufacturers and Exporters Association president Mahmud Hasan Khan and Knitwear Manufacturers president Mohammad Hatem have urged both governments to resolve transport frictions through high-level talks.

    Trade associations from both nations continue to push for formal negotiations on a Comprehensive Economic Partnership Agreement to clear land port bottlenecks and establish mutual certification standards.

  • Rakuten Doubles Tokyo Autonomous Delivery Fleet to 10 Robots

    Rakuten Doubles Tokyo Autonomous Delivery Fleet to 10 Robots

    Rakuten Group has expanded its autonomous sidewalk delivery fleet in eastern Tokyo, targeting 24,000 households across the Harumi, Tsukishima, and Kachidoki districts. The Japanese group is doubling its deployment of US-built Avride delivery robots to 10 units after launching the commercial run in November 2024.

    The service connects more than 90 drop-off points to local merchants, including Starbucks, FamilyMart, Yoshinoya, and Supermarket Bunkado. Each cart carries one order per trip inside a 54-liter cargo hold, twice the volume of earlier testing units. They run for up to 12 hours on a 3.5-hour charge, navigating at speeds capped by Japanese law at 6 kilometers per hour.

    Sidewalk Hardware and Route Rules

    Avride builds the hardware with light detection and ranging sensors alongside ultrasonic arrays, allowing navigation at night and in rainfall up to 20 millimeters per hour. Operations pause during heavier storms, snow, or high winds. Japanese transport regulations require off-site human overseers to monitor the machines remotely, though operators do not need to walk alongside them on the pavement.

    Integrating different property access points and door locks remains the main operational hurdle for sidewalk robotics in dense Asian cities. Rakuten uses custom unlocking instructions tailored to individual apartment complexes to let buyers retrieve parcels from the cargo bay.

    Expanding Beyond Food Orders

    Japan’s food delivery sector reached 800 billion yen ($5.41 billion) in 2024, but acute courier shortages and tightening overtime limits on drivers are forcing platform operators to automate ground transport. While automated carts still handle a sliver of Rakuten’s total volume, the group is setting up the software routing engine to support mixed fleets across commercial hubs.

    Rakuten plans to test the 10-robot fleet on business-to-business shipments and prescription pharmaceuticals once domestic retail operations stabilize across the initial three Tokyo neighborhoods.

  • Taiwan Convenience Chains Expand Southeast Asian Goods as Migrant Numbers Double

    Taiwan Convenience Chains Expand Southeast Asian Goods as Migrant Numbers Double

    Taiwan convenience operators FamilyMart and 7-Eleven are rewiring hundreds of store layouts to target more than 870,000 Southeast Asian migrant workers now living on the island. FamilyMart has installed dedicated import sections across 1,200 outlets, roughly 30 percent of its total network, after sales in the category jumped 70 percent last year.

    Government labour data shows the island’s migrant workforce expanded from 390,000 in 2011 to over 870,000 this year. When including international students, spouses, and undocumented workers, the consumer cohort reaches an estimated 1.2 million people. A study by non-profit group One-Forty found these residents visit convenience stores every two days on average, relying on them for food, parcel pick-ups, and cross-border remittances.

    Halal hot food and bilingual shelves

    FamilyMart began testing dedicated shelves in residential and manufacturing districts in 2020. Those sections stock roughly 100 packaged items from Indonesia, Vietnam, Thailand, and the Philippines, supported by dual-language Chinese and English labelling alongside halal marks. The chain introduced pork-free hot food stations across 220 locations near transport hubs, hospitals, and industrial zones in 2024, and now distributes halal-certified ready-to-eat meals to 700 stores.

    Rival operator 7-Eleven has rolled out Southeast Asian merchandise fixtures to 400 branches. Its inventory focuses on high-turnover staples such as Indonesian instant noodles and sambal, Philippine dried mangoes, Thai roasted peanuts, canned coconut water, and energy drinks placed near universities and factory zones.

    Supermarkets tailor fresh produce

    Supermarket chain PX Mart is adjusting its own assortments in response to heavy footfall around manufacturing clusters. At its branches near the Hukou Industrial Park in Hsinchu County, one quarter of migrant worker shoppers visit more than once a week. PX Mart has divided its foreign range into four core groups: packaged groceries, instant meals, household goods, and fresh produce tailored by nationality, adding specific herbs for Vietnamese cooks and personal care lines imported from Indonesia.

    Convenience retailers across East Asia frequently tweak shelf space to protect store yields as domestic populations age and shrink. In Taiwan, where convenience store density is among the highest in the world, shifting floor space toward Southeast Asian staples allows operators to extract higher basket sizes from a daily captive audience without adding physical square footage.

    Store planners are now watching whether 7-Eleven expands its 400 dedicated sections deeper into residential neighbourhoods, while FamilyMart continues rollouts of halal-certified hot food counters across remaining transit-hub locations.

  • 7-Eleven Singapore Adds 1,500 Products and Expands Digital App Across 460 Stores

    7-Eleven Singapore Adds 1,500 Products and Expands Digital App Across 460 Stores

    7-Eleven Singapore added more than 1,500 exclusive products over the past 24 months and linked its digital app across more than 460 outlets nationwide.

    The convenience chain expanded its footprint beyond traditional impulse snacks, shifting square footage toward hot meals, private-label beverages, and licensed merchandise to build daily basket values.

    Self-Checkout and Hospital Automation

    Operational upgrades centered on store throughput. The chain installed dual self-checkout systems in more than 300 stores, giving staff the ability to toggle cashier stations to automated mode during morning and evening rush hours. At Singapore General Hospital, the operator opened a fully unmanned location using overhead computer vision and frictionless exit gates to process payments without cashier intervention.

    Physical refits also introduced dedicated sit-down dining counters and modular food prep stations. These spaces support branded ready-to-eat partnerships, including baked goods, personal-sized pizzas, and regional food collaborations with local operators such as Old Chang Kee and Andes by Astons.

    Omnichannel Ordering and App Metrics

    Digital ordering operations scaled through the dedicated 7-Eleven Singapore mobile platform, which accumulated 300,000 downloads within ten months of its February 2025 rollout. The app integrates three core transactional functions: EasyCollect, which routes click-and-collect fulfillment to neighborhood branches within 15 minutes, a digital stamp loyalty tracker, and prepaid product bundles called ValuePacks.

    Convenience operators across Southeast Asia face intense competition from instant-delivery platforms and specialty coffee chains, forcing traditional corner shops to emulate the Japanese konbini model. By building out prepared food counters, private-label collaborations, and in-app pickup, 7-Eleven is defending store margins against rising labor costs and higher urban commercial rents.

    The retailer is now tracking pickup adoption rates and repeat transaction frequencies through the app as it evaluates further autonomous store deployments in transport and healthcare facilities.

  • Hundreds of Asian Corporate Heavyweights Report Earnings in Peak Week

    Hundreds of Asian Corporate Heavyweights Report Earnings in Peak Week

    About 370 constituents of the MSCI Asia Pacific Index will report financial results this week, testing consumer demand across China and the resilience of hardware supply chains.

    The reporting group represents roughly 30 percent of the benchmark’s more than 1,200 member companies. Corporate updates from heavyweights across transport, consumer retail, energy, and component manufacturing will land over five consecutive trading sessions.

    Consumer and Automotive Focus

    Automotive manufacturer BYD Co. Leads the consumer batch as price competition across the electric vehicle sector shapes domestic delivery numbers and regional export margins. At the high end of retail, heritage jewellery brand Laopu Gold Co. Presents numbers that reveal how affluent shoppers in mainland shopping hubs are allocating capital.

    For retail and brand operators across Greater China, performance figures from domestic leaders provide a direct gauge of discretionary spending power. Previous reporting cycles showed shoppers trading down in mass categories while allocating funds toward premium gold assets and domestic electric mobility brands.

    Hardware and Industrial Benchmarks

    Technology components and infrastructure suppliers also feature heavily in the schedule. Optical transceiver maker Eoptolink Technology Inc. Reports alongside energy group PetroChina Co., offering detail on corporate spending in artificial intelligence architecture and baseline energy consumption.

    Investor attention centres on operating margins and forward order guidance across both consumer platforms and hardware exporters as balance sheets post through Friday.

  • Da Nang Airport Sets $379 Million Terminal 1 Expansion for August 2027

    Da Nang Airport Sets $379 Million Terminal 1 Expansion for August 2027

    Airports Corporation of Vietnam will start construction on a VND9.9 trillion ($379 million) expansion of Da Nang International Airport Terminal 1 in August 2027.

    The project will raise the domestic terminal’s processing capacity to 14 million passengers annually, dividing volume between 10 million domestic and 4 million international travelers.

    State operator ACV and the Da Nang municipal People’s Committee confirmed the timeline during a formal project rollout that also includes the first phase of an expanded aircraft apron. Under the construction schedule, the newly built extension will open to passengers in January 2029. Crews will then finish renovating the existing terminal structure by August 2029.

    New Commercial Space and Road Access

    Engineering plans cover auxiliary facilities and airfield infrastructure alongside the main passenger building. Contractors will rebuild the elevated access road, install a wastewater treatment plant, and lay out revised traffic lanes, landscaping, and waste collection stations.

    Commercial real estate forms a central part of the footprint. The blueprint includes a dedicated technical facility and a multi-story car park designed with integrated commercial service floors for retail and food tenants.

    Central Vietnam Gateway Capacity

    Da Nang serves as the primary commercial and tourism conduit for central Vietnam, where air traffic growth has repeatedly outpaced terminal design limits over the past decade. Expanding T1 allows ACV to relieve pressure on domestic gates while capturing higher non-aeronautical revenue from travel retail concessions, passenger dining, and airport parking.

    Work on the apron expansion proceeds first, with full terminal construction tenders expected ahead of the August 2027 groundbreaking date.

  • Pakistan Plans Uniform Gas Tariff to End Cross Subsidies

    Pakistan Plans Uniform Gas Tariff to End Cross Subsidies

    Pakistan is replacing its tiered gas pricing system with a single uniform tariff across all consumer categories. Petroleum Minister Ali Pervaiz Malik outlined the plan to utility executives in Islamabad.

    The Oil and Gas Regulatory Authority sets the benchmark prescribed price near Rs1,700 per million British thermal units. Even so, end-users currently pay anywhere between Rs500 and Rs4,300 per mmBtu depending on consumption brackets.

    Aligning Rates with IMF Targets

    International lenders and domestic regulators have pressed Islamabad to dismantle cross-subsidies and recover actual distribution costs. Under the new model, vulnerable households will receive targeted welfare payouts instead of discounted bills. Businesses and heavy users will pay a standardized rate.

    Malik directed state-run distributor Sui Southern Gas Company to redesign its operational model around the single-rate baseline. The utility cut unaccounted-for gas losses by roughly 57 per cent in volumetric terms over the past year. Islamabad also held headline tariffs flat, trimming roughly Rs55 billion from the sector’s circular debt balance.

    Reforming Industrial Utility Models

    For commercial operators and factories across Pakistan, ending tiered subsidies removes pricing distortions that pushed manufacturers toward alternative fuels. The shift mirrors utility overhauls in Bangladesh and India. Both nations curtailed industrial discounts to secure multilateral loan tranches and stabilize sovereign balances.

    Technical advisers from the World Bank are helping Islamabad prepare the broader restructuring plan. The cabinet must review the pricing mechanism next, clearing the regulatory authority to calculate baseline consumer rates for the upcoming fiscal cycle.

  • 52TOYS Opens Hong Kong Airport Store to Expand Global Reach

    52TOYS Opens Hong Kong Airport Store to Expand Global Reach

    Chinese collectible toy maker 52TOYS has opened a retail store inside Hong Kong International Airport, targeting travelers passing through a hub connected to more than 200 global destinations. The shop sits in Terminal 1 at Shop 7E101A on Level 7 Departures East Hall, inside the airside restricted area.

    Its interior uses an industrial aesthetic with runway markings and turbine motifs, mirroring the travel-focused flagship design the brand first rolled out at Beijing Capital International Airport.

    Local exclusives and travel gear

    The shop layout puts practical travel items at the front, led by POUKAPOUKA neck pillows. Shelves deeper inside carry original intellectual property lines including NOOK and CiCiLu, alongside mechanical series such as BEASTBOX and Hyper-Activated display models.

    To appeal directly to outbound tourists, 52TOYS introduced several airport-exclusive goods. These feature local cultural motifs, including pineapple bun accessories, kung fu figurines, Cha Chaan Teng themed sets, and branded luggage tags.

    Transport hub rollout strategy

    Chinese pop toy brands are leaning heavily on transport retail to capture foreign shoppers without opening standalone city networks abroad. Pop Mart and 52TOYS both treat airport footprints as low-risk international shows, converting high footfall into brand recognition across Western and Southeast Asian markets.

    This launch follows earlier openings at Macau Studio City and Beijing Capital International Airport, completing the company’s network across key Greater Bay Area and mainland travel gateways. 52TOYS plans to secure additional high-traffic transit locations across regional airports in its next expansion round.

  • Indian Executive Coaching Faces Price War as New Entrants Cut Hourly Fees

    Indian Executive Coaching Faces Price War as New Entrants Cut Hourly Fees

    Indian executive coaching rates dropped to 8,000 rupees an hour as new entrants flooded corporate rosters and undercut established advisors who command up to 100,000 rupees.

    Corporate clients across Mumbai, Bengaluru, and New Delhi now demand bulk discounts on leadership training contracts while testing artificial intelligence bots for standard employee check-ins. The shift comes as businesses look for cheaper ways to retain senior executives amid moderating salary growth.

    Supply Spikes Across Training Platforms

    Senior corporate directors who left industry roles over the past five years created a sudden supply surge. New practitioners must log fixed coaching hours to earn International Coaching Federation credentials, prompting many to slash initial hourly fees to between 8,000 and 10,000 rupees ($95 to $120) to win corporate mandates.

    Specialized recruitment and training marketplaces expanded quickly to handle the volume. B2B coaching network Meeraq accumulated 3,000 coaches on commission over four years, while affiliated training arm Coach-To-Transformation expanded annual enrollment to 500 executives, up from 25 participants in 2016. Its three-to-four-month qualification course costs 165,000 rupees plus goods and services tax.

    Automated Agents Enter Corporate Retainers

    Enterprise buyers are also weaving automated software into long-term leadership contracts. Human resources departments deploy AI agents to handle early goal-setting, coach matching, and routine follow-ups during multi-month development programs.

    For enterprise employers in India, the coaching shakeout mirrors the rapid commoditization seen across corporate software and technical training. Retailers and consumer tech firms that previously reserved one-on-one executive development for board-level leadership can now distribute structured coaching to mid-level managers at a fraction of historic budgets.

    Enterprise procurement teams across India are now renegotiating annual leadership retainers ahead of the next fiscal budgeting cycle, with platforms competing to bundle human advisory sessions alongside automated tools.

  • South Korea Retail Sales Rose 6.4% in July on Summer Spending

    South Korea Retail Sales Rose 6.4% in July on Summer Spending

    South Korea’s major retailers increased combined sales by 6.4 percent year-on-year in July. Demand for vacation gear, imported fashion, and food delivery services drove the rise.

    Internet platforms handled the bulk of that growth. They captured 60.8 percent of total retail revenue during the month, according to data from the Ministry of Trade, Industry and Energy.

    Department Stores and Convenience Chains Expand

    Brick-and-mortar turnover climbed 3.2 percent from a year earlier. Both department stores and convenience chains extended their unbroken run of year-on-year growth to 13 consecutive months.

    Department stores posted the sharpest gains offline, with sales jumping 17.9 percent. Demand rose across every major category. Imported apparel, summer travel gear, and cooling appliances led the expansion.

    Convenience stores generated a 1.1 percent sales increase over the same period. Foot traffic slipped. Higher spending per transaction kept overall takings positive.

    Online Channels Take Larger Revenue Share

    Digital platforms posted an 8.5 percent revenue increase compared with July last year. Food delivery orders, packaged groceries, and home appliances recorded the fastest category gains across web storefronts.

    Consumer habits in the country continue to split. Digital channels dominate everyday replenishment, while physical stores rely on experiential shopping and premium apparel to draw spending.

    Trade ministry officials will publish the August retail index next month. That report will show whether back-to-school shopping and late-summer promotions sustained the sales momentum.

  • Indonesian Retailers Urge Easing of Import Rules to Hit 6% Target

    Indonesian Retailers Urge Easing of Import Rules to Hit 6% Target

    Indonesian store operators are lobbying the government to ease import barriers, arguing regulatory bottlenecks threaten national retail consumption and the state’s 6 per cent economic growth target.

    Household spending drives more than half of Southeast Asia’s largest economy, yet complex technical permits and shifting product approvals continue to choke supply lines for global brands.

    Speaking at the Indonesia Retail Summit in Jakarta, Indonesia Retail and Tenant Association Chairman Budihardjo Iduansjah pushed for administrative relief on compliant merchandise. He argued that businesses paying duties and taxes should not face arbitrary import caps on goods with no domestic substitutes.

    Diverging fortunes across store formats

    The supply friction hits different store models unevenly. While hypermarkets face sliding footfall and operational contraction, convenience stores and minimarkets continue to add locations.

    Demand across food and beverage, cosmetics, and mobile electronics expanded by more than 10 per cent this year. Chains are using warehouse automation and price promotions to protect margins against rising overheads.

    Retailers across Southeast Asia face similar dilemmas when domestic trade protection policies collide with consumer appetite for international product ranges. In Jakarta, the friction has prompted warnings from policymakers that depleted domestic shelves will simply push middle-class shoppers abroad.

    Stemming outbound tourist spending

    Chief Economic Affairs Minister Airlangga Hartarto acknowledged that thin store inventories push shoppers to spend outside the country. Indonesian citizens spend roughly $6.7 billion annually on overseas travel services.

    Government planners want to retain that cash by developing domestic shopping tourism and expanding inventory depth in major commercial hubs.

    Whether trade regulators shorten import licensing timelines will determine if mall operators can secure sufficient stock ahead of the next fiscal review.