Matahari Department Store, one of the largest shopping centers in Indonesia, has reportedly closed its outlets again. Matahari closing its stores is no longer new news, because over the past 4 years many of its stores have started to close in various locations. It seems that the closure of the Matahari outlet does not stop here, because in the future plans will also carry out further closures. Meanwhile, those that have just closed include WTC Serpong and Mal Balekota Tangerang.
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Reasons why Matahari is closing its stores
The cause of the closing of Matahari outlets cannot be separated from the rise of digitalization in the retail industry sector, the number of online shops popping up is a phenomenon in recent years. Moreover, since Covid hit Indonesia and also in various other parts of the world, people’s mobility has reduced during the pandemic, they have chosen to carry out shopping activities online. This causes shopping centers to tend to become quieter, which of course also has an impact on Matahari.
Apart from that, the cause of the closure of Matahari outlets was a change in management, which automatically had different policies and approaches in managing company performance, one of which was the store closure policy. Apart from that, retail business trends are also a consideration so that companies can continue to keep up with current developments. The big store format is now starting to shift to a smaller retail form.
Another factor that caused Matahari to close its outlets was its difficulty in competing with other businesses which were now mushrooming, including the presence of cheap imported clothes. Sales of imported goods are generally carried out through online shopping, which is now a trend in society.
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Take advantage of the Discount Party during the Stock Clearance Period
Following the closure of Matahari outlets, of course this also has an impact on the remaining stock of goods. For this reason, accompanying the closing of the Matahari outlet, a stock clearance program and warehouse clearance program will also be held which can be used by the public to obtain remaining goods at competitive prices. Discount parties are held and of course this is an attraction for people to take advantage of.
After the impact of Covid and the pandemic that many have felt, the economy has begun to recover and develop again, for example in the food and beverage sector, but for fashion goods and shoes it seems that they still have to struggle again because of the competitive factors of these businesses which are now also rapidly developing following the times and need. Here, government support is needed, so that local industry can continue to compete. The complexity of import governance is something that needs attention and requires improvement to make it better.
The phenomenon of Matahari closing its outlets in future developments is not impossible that the same thing will happen with other outlets, especially those running similar businesses. Moreover, if conditions like this continue continuously, of course it is very likely to have an impact because of the strong onslaught and business trends which of course follow the desires and needs of society.
