Jurnal Ekonomi, Vol 14, No 1 (2009)

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THE EVOLUTION OF RETAIL STRUCTURE IN INDONESIA

Rizal Edy Halim

Abstract


Retail concept starts from marketing discipline which formulates how process and mechanism of goods and services’ flow to end customers. The retail sector and its environment have experienced radical changes in the last decade. Most of the challenges are due to changing demographic, social, politic, business climate, and absolutely the rapid growing of world-class retailer such as Wall Mart, Carrefour, K-Mart, etc. The market of retail industry in Indonesia recently dominated by a numbers of large-scale retailer or category killer such as Carrefour, Hypermart, Giant, Macro. For purpose to understanding the growing retail sector in Indonesia, the academics and practices need to know he evolution of retail structure in Indonesia which has not describe yet. This study empirically explore the evolution of retail structure in Indonesia by include the growing population from year 2000-2007 using the Central Place Theory. The result shows that the modern retail grew faster and expansively than traditional retail. The study also shows that the traditional retail growth slow down since global retailer entry the market.


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