The Debenhams Indonesia department store will close by the end of this year, according to local brand partner MAP.
And the Lotus department store will close by next week, the company said, revealing the results of a strategic review which commenced in June.
“The decision to close these stores was made after careful consideration of changing global retail trends,” MAP said in a statement.
“Going forward, MAP will consolidate its department store business and focus on its flagship Sogo, Seibu and Galeries Lafayette stores.”
Fetty Kwartati, head of corporate communication with MAP said the move would “build a stronger MAP”.
“Across the world, millennials are moving away from department stores, preferring to shop in specialty stores and Indonesia is no exception. In line with current market trends, MAP will also invest more in its Active, Fashion and Food and Beverage divisions.”
Kwartati said Indonesia is also experiencing significant growth in e-commerce which has impacting on traditional brick-and-mortar stores.
“In response to this disruption, MAP has already launched its flagship MAPeMall and we will intensify efforts to grow our O2O business as part of our vision to become the leading omni-channel retailer in the region.
“Significantly, we are seeing positive results from our various corporate actions. A strong first half was followed by robust performance in the third quarter – marked by strong revenue growth. We strongly believe that all these strategic initiatives will position MAP for long term growth and increase in shareholder value,” he concluded.
MAP (PT Mitra Adiperkasa Tbk) operates 1916 retail stores in 69 major cities across Indonesia.
Besides its department store businesses, it operates the local chains for Zara, Marks & Spencer, Topman, Topshop, Next, Kipling, Lacoste, Nautica, Massimo Dutti, Staccato, Crabtree & Evelyn, Swarovski, Zara Home, Sephora, Converse, Golf House, Payless ShoeSource, Oakley, Planet Sports, Reebok, Rockport, Skechers, Sports Station, The Athlete’s Foot, The Sports Warehouse, Starbucks, Burger King, Domino’s Pizza, Pizza Marzano, Krispy Kreme, Cold Stone Creamery Ice Cream, Godiva, Paul Bakery, Kidz Station, Oshkosh B’Gosh, Carter’s, Kinokuniya and Alun Alun Indonesia.
