PT Hero Supermarket, owned by Dairy Farm International, is to retire its hypermarket chain banner Giant in Indonesia as the company restructures.
According to an announcement, Hero will close most of Giant stores and convert them into new outlets for its Ikea, Guardian and Hero brands.
“Like any capable business, we are constantly adapting to changing market dynamics and customer trends,” said Patrik Lindvall, president director of PT Hero Supermarket. “The declining popularity of the hypermarket format in recent years in Indonesia is also seen in global markets.”
Currently, Hero operates 75 Giant hypermarkets across Indonesia. Five large-size Giant stores will be converted into Ikea outlets, while other outlets will be closed by the end of July.
“Within two years, we are targeting to quadruple the number of our Ikea outlets compared to last year, as well as open up to 100 new Guardian outlets by the end of next year,” Lindvall said.
The company said it believed the household appliances, health and beauty sectors, and daily necessities for the upper class have higher growth potential.
“Big decisions like this are not easy,” Lindvall added. “We believe this decision needs to be made in the long-term interests of PT Hero Supermarket and our employees who are under the auspices of the company. “