Growth Of Minimarkets Poses Threat To Supermarkets

The proliferation of minimarts is gradually eating into the supermarket retailers' consumer base. Due to the rapid spread of minimarts, the number of supermarkets fell by 17% in 2011 to 1,229 stores from 1,477 stores in 2008, according to data from the Indonesia retail employers' association, Aprindo. In comparison, the number of minimarts increased by 63% to 16,720 in 2011, from 10,289 in 2008. Given the competitive advantages of minimarkets such as cheaper product prices, greater accessibility and the format's increasing popularity among the younger generation, minimarts are likely to remain a major threat to the sales opportunities of supermarket retailers.

Source: http://goo.gl/X2PIK