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Lifestyle
KONTAN/Carolus Agus Waluyo
Food And Lifestyle Stores Occupie 80% Of Mall Occupancy
Thursday, 07 Nov 2024
The occupancy rate of shopping centers for the third quarter of 2024 is seeing a boost thanks to the growth in the food and beverage (F&B) sector and lifestyle demands, according to retail entrepreneurs and tenants.
"Right now, 80% of tenants, both local and international, looking to join Hippindo are mainly focused on opening fast food and coffee shop outlets, which shows a big increase in F&B interest," said Budihardo Iduansjah, Chairman of the Indonesian Retailers and Shopping Center Tenants Association (Hippindo), during a chat with Kontan on Friday, November 1.
Besides the F&B sector, the rise of lifestyle businesses is also playing a role in increasing occupancy rates as the year wraps up. "Lifestyle isn't just about clothing stores; it covers a wide range of needs, like those provided by Miniso. So, we need to think about a broader spectrum of lifestyle demands," he added.
Budi also pointed out that while the growth in the F&B sector brings in revenue for retailers, it comes with its own set of challenges. Retailers need to implement different operational strategies compared to other tenants. "In big cities, setting up locations now requires careful planning for water and gas supply, along with facilities for dishwashing and waste disposal. This is quite different from non-F&B tenants, who might only need electricity," he explained.
Budi from Hippindo has pointed out that while there's been growth in some areas, the big supermarket sector is actually seeing a drop. He believes this is due to increased competition, with shoppers now looking for more innovative options from their grocery stores. Nowadays, people prefer supermarkets that come with extra features like food courts or entertainment spots.
"They really need to start thinking outside the box. Being big isn’t a bad thing, but they have to figure out what their unique concept is. For example, adding a food court inside the supermarket could be a game changer," Budi mentioned. "If they stick to the same old ideas and don’t innovate, they’re going to fall behind," he added.
Alphonzus Widjaja, who heads the Indonesian Shopping Center Entrepreneurs Association (APPBI), echoed these thoughts. He pointed out that occupancy rates in Hypermarkets and Department Stores are on the decline. "The growth we’re seeing doesn’t apply to Hypermarkets and Department Stores, which are still facing challenges," he told Kontan.
He also shared that shopping centers are expected to have an average occupancy rate of 85% to 90% in 2024. As for new malls, APPBI predicts that by mid to late 2024, four new shopping centers will be opening in the Jabodetabek area: Agora Thamrin, Menara Jakarta Kemayoran, Living World Grand Wisata, and Pakuwon Mall Bekasi.
