Hippindo 80% Of Mall Occupancy Dominated By The Food And Lifestyle Sector

Friday, 08 Nov 2024

By deriz@insightinnews.com The occupancy rates of shopping centers, as highlighted by retail entrepreneurs and tenants for the third quarter of 2024, are significantly enhanced by the flourishing food and beverage (F&B) sector alongside evolving lifestyle demands. "At present, 80% of tenants, both local and international, expressing interest in joining Hippindo are predominantly focused on establishing outlets in the fast food and coffee shop domains, reflecting a remarkable surge in the F&B industry," Budihardo Iduansjah, Chairman of the Indonesian Retailers and Shopping Center Tenants Association (Hippindo) said on Friday, November 1. Beyond the F&B sector, the growth of lifestyle-oriented businesses is also playing a pivotal role in boosting occupancy rates as the year draws to a close. "Lifestyle extends beyond mere apparel; it encompasses a wide array of lifestyle necessities, including those provided by Miniso. Thus, it is crucial to acknowledge a more comprehensive spectrum of lifestyle demands," he elaborated. Budi further emphasized that while the growth in the F&B sector generates revenue for retailers, it also introduces certain complexities. Retailers are required to implement distinct operational strategies compared to their non-F&B counterparts. "In metropolitan areas, the preparation of locations now necessitates meticulous planning regarding water and gas supply, as well as facilities for dishwashing and waste management. This stands in stark contrast to non-food and beverage tenants, who typically require only electrical provisions," he clarified. Budi from Hippindo has observed a notable shift in the large-scale supermarket landscape, despite an overall increase in the market. He attributes this decline to intensified competition, as consumers increasingly seek innovative offerings from supermarket chains. Presently, shoppers are gravitating towards supermarkets that provide an array of amenities, including food courts and entertainment options. "They must embark on the journey of developing new concepts. While size can be advantageous, it is imperative to define the underlying concept. For example, integrating a food court within the supermarket is essential," Budi emphasized. "Without fresh concepts and relying solely on traditional products, they risk being left behind," he cautioned. Alphonzus Widjaja, Chairman of the Indonesian Shopping Center Entrepreneurs Association (APPBI), echoed this sentiment, highlighting a downturn in occupancy rates within the Hypermarket and Department Store sectors. "The increase is an exception for these categories, which continue to face challenges," he said. He further projected that the average occupancy rate for shopping centers in 2024 will hover between 85% and 90%. Regarding mall expansions this year, APPBI anticipates the unveiling of four new shopping centers in the Jabodetabek area by mid to late 2024: Agora Thamrin, Menara Jakarta Kemayoran, Living World Grand Wisata, and Pakuwon Mall Bekasi.

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