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Carrefour Eyes Wealthy Shoppers With Plan to Transform Alfa Retailindo Stores
Shirley Christie | September 02, 2011

Carrefour Indonesia plans to go up market in Jakarta in a bid to attract high-income customers. (Photo courtesy of indocashregister.com) Carrefour Indonesia plans to go up market in Jakarta in a bid to attract high-income customers. (Photo courtesy of indocashregister.com)
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Mike.Jkt
7:39am Sep 4, 2011

OK..go for it but please try to stock the shelves with more imported products than local products. If you do that I'll shop there more often.

jetset24
5:01am Sep 4, 2011

While Carrefour in France attracts more the lower and middle class shoppers, you would also rub shoulder to shoulder with a few upper class folks. Nonetheless, Carrefour in Indonesia opt to have French products to attract upper class Indonesians who have a palate for it.


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Carrefour Indonesia, the nation’s largest retailer, is planning to transform up to four Alfa Retailindo outlets into upscale supermarkets next year to cater to the premium market in the capital.

“Alfa will continue to penetrate the market according to its core business and based on more thematic concepts,” Satria Hamid Ahmadi, senior public affairs manager at Carrefour Indonesia, said last week.

“We are planning to develop a premium concept, and currently still looking for suitable locations.”

Carrefour is planning to open the premium outlets early next year and wants to turn between two and four Alfa outlets into premium outlets each year.

Satria said that Carrefour had already turned several Alfa outlets into Carrefour Markets — a hypermarket concept with a focus on fresh products, food and beverages — and Carrefour Express, a supermarket sized at less than 3,500 square meters.

He also said the company was for now only planning to develop the premium outlets in Jakarta, because of demand for premium products in the capital.

“There will be more fresh products, such as organic variants,” Satria said, adding that the supermarket would also sell unique handicrafts.

According to the retail service director of Nielsen Indonesia, Yongky Susilo, Indonesia’s gross domestic product is heading towards $4,000 per person and the upper-middle-class sector is growing. Last year’s per capita income was $3,000.

Yongky estimated that 40 percent of Jakarta’s 10 million residents can be considered upper or middle class, spending more than Rp 3.5 million ($410) per month.

“There are not many competitors in the premium supermarket sector, so there is plenty of room to grow,” Yongky said.

He added that Carrefour should aim for residential areas in South Jakarta to reach its target, as many upper-class families live in that part of the city.

“With this premium sector, they surely could reach a higher [profit] margin,” he said, adding that the retail business should innovate and trying new marketing and service strategies to lure customers.

“Retailers should build loyalty, therefore they must focus on developing a more personalized service,” Yongky said.

Alfa Retailindo reported a profit of Rp 9.9 billion in the first half, compared with a loss of Rp 2.2 billion a year earlier.

Established in 1989, the company listed on the Indonesia Stock Exchange (IDX) in January 2000.

In 2008, Carrefour Indonesia bought a 79.9 percent stake in Alfa Retailindo, making it the company’s majority stakeholder. Last year, Carrefour Indonesia bought the remaining shares owned by Sigmantara Alfindo, lifting its ownership to 99.54 percent.