lifestyle

80% Of Mall Occupancy Filled By Food And Lifestyle Sector

The occupancy rate of shopping centers, as reported by retail entrepreneurs and tenants for the third quarter of 2024, is bolstered by the expansion of the food and beverage (F&B) sector and lifestyle needs.

"Currently, 80% of tenants, both domestic and international, seeking to join Hippindo are primarily interested in opening stores in the fast food and coffee shop sectors, indicating a significant rise in F&B," stated Budihardo Iduansjah, Chairman of the Indonesian Retailers and Shopping Center Tenants Association (Hippindo), during a conversation with Kontan on Friday, November 1.

In addition to the food and beverage sector, the expansion of lifestyle-related businesses is also contributing to occupancy rates as the year comes to a close. "Lifestyle encompasses more than just clothing stores; it includes various lifestyle needs, such as those offered by Miniso. Therefore, it is essential to consider a broader range of lifestyle requirements," he added.

Budi further noted that while the expansion in the F&B sector provides revenue for retailers, it also presents challenges. Retailers must adopt different operational strategies compared to other types of tenants. "In major cities, preparing locations now requires careful consideration of water and gas supply, as well as facilities for dishwashing and waste disposal. This is in contrast to non-food and beverage tenants, who may only need electricity," he explained.

Despite the increase, Hippindo's Budi has also noted a decline in the large-scale supermarket sector. He attributes this trend to heightened business competition, where consumers are demanding more innovation from supermarket chains. Currently, shoppers are more inclined towards supermarkets that offer a wider range of amenities, such as food courts or entertainment areas.

"They must begin to develop new concepts. It does not mean that being large is not good, but they need to consider what the concept is. For instance, incorporating a food court within the supermarket," Budi stated. "If there is no new concept and they rely solely on existing products, they will be left behind," he added.

A similar sentiment was expressed by Alphonzus Widjaja, the Chairman of the Indonesian Shopping Center Entrepreneurs Association (APPBI). He noted a decline in occupancy rates within the Hypermarket and Department Store sectors. "The increase is except for the Hypermarket and Department Store categories, which are still under pressure," he remarked to Kontan.

He further mentioned that the average occupancy rate for shopping centers in 2024 is expected to range between 85% and 90%. Regarding mall expansions this year, APPBI anticipates that by mid to late 2024, four new shopping centers will open in the Jabodetabek area: Agora Thamrin, Menara Jakarta Kemayoran, Living World Grand Wisata, and Pakuwon Mall Bekasi.

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Tag: Food And Beverage Hippindo Lifestyle Sector