SPAR International enters Indonesia

Date : 04 March 2015

SPAR International has opened three stores in Jakarta in conjunction with PT Ramayana Lestari Sentosa marking its entry into the country. SPAR and Ramayana said that the three stores were part of plans to be operating 15 in Indonesia by the end of 2015.

Stores are conversions of existing Ramayana-owned outlets

Ramayana is a leading retailer in Indonesia operating 116 stores in the country, under the Ramayana, Robinson and Cahaya fascia, with the three SPAR outlets being conversions of existing outlets. SPAR International and Ramayana said that €1 million had been invested in the refurbishment and relaunch of the three stores, which all measure approximately 1,500 sq. m in size. The stores’ modernisation, the companies said, had seen the introduction of large fresh sections including an in-store bakery, fresh fish and a hot food-to-go offer, amongst other elements, and is expected by the two organisations to lead to a 30% increase in turnover.

Combination of skill sets aimed to drive offer at SPAR

Indonesia is a very large-scale and attractive country, but retailers in the market are facing headwinds as costs are rising strongly, with steep yearly increases in the minimum wage and rising energy costs encouraging retailers to focus on labour and operational efficiency. It is likely that Ramayana will be hoping to adopt key learnings from SPAR International around supply chain and logistics to help improve profitability, while in-store processes could potentially benefit as well from the tie-up.

For SPAR International Indonesia provides a long term growth opportunity. With traditional channels, such as “warung” wet markets, the primary channel for many shoppers, there is a large section of the market for it to gain share from by encouraging shoppers to move from traditional channels into its stores.