JAKARTA (TheInsiderStories) – Bank Indonesia reported the Retail Sales Index (RSI) accelerated to 3.6 percent in October compared to year ago. The growth is the fastest face in five months and picking up from last month at 0.7 percent.
It said, the retail sales growth was supported by sales of food, beverage, tobacco, spare parts and accessories. Looking ahead, said the central bank, retailers are forecast continue to grow positively, albeit with a slightly lower growth in November 2019.
This is indicated with the November’ RSI grow 3.4 percent in annual basis driven by the sales of spare parts and accessories, other household equipment, also food, beverage, and tobacco.
The survey also pointed to milder inflationary pressures at the retail level in the next three months, as reflected by a decline in the 3-month Price Expectations Index to 149.2 from 153.1 the month earlier.
The retail market in Indonesia is expected close to 6 percent during the period 2019 – 2023, according to the latest market research report by Technavio. Expansion of the retail landscape is one of the key factors anticipated to trigger the retail market in Indonesia during the next few years.
The report said, the organized retail market in Indonesia is growing significantly across the country with companies expanding their stores and evaluating their business potential in new areas. Most of the unorganized retail outlets are increasingly being replaced with big retail hypermarkets, supermarkets, and other retail chains, which will lead to market growth of the Indonesian retail sector.
Technavio rated the growth in e-commerce will have a positive impact on the market and contribute to its growth significantly over the forecast period. The cable tray market research report also analyzes other important trends and market drivers that will affect the market growth over 2019 – 2023.
Its reported, many small and established Indonesian retail brands are going online, resulting in a significant boom in Internet shopping in the region. With internet connectivity becoming more and more robust and affordable, consumers are beginning to feel secure and comfortable while purchasing online.
The online channel will present immense opportunities for retailers in Indonesia during the forecast period. Moreover, the growth of m-commerce is expected to support the growth of the online retail segment in Indonesia during the next five years.
“Apart from the growth in the e-commerce marketplace, other factors such as the growing preference for local brands, rise in tourism, and the rising marketing activities by retailers will have a significant impact on the growth of the Indonesian retail market during the forecast period,” says a senior analyst at Technavio.
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