Anton Hermansyah, Jakarta – Retailers expect to have sales growth between only 15 and 20 percent month-on-month (mom) during the year-end holidays – Christmas and New Year – compared to about 25 to 30 percent sales growth in the previous years.
The outlook is based on sluggish growth during the Idul Fitri holiday in June, in which sales grew only 5 percent instead of the usual 15 to 20 percent, said Indonesian Retailers Association (Aprindo) chairman Roy Nicholas Mandey in Jakarta on Monday.
"We are being realistic for the holidays this Christmas and New Year," he said, adding that retail businesses had been seriously affected by low spending from lower middle-consumers, who preferred to hold onto their money for secondary needs due to increasing living costs and stagnant salaries.
On the other hand, higher middle-consumers have changed their consumption habits toward more "lifestyle" purchases, such traveling, eating in restaurants and hanging out in coffee shops, he added.
He estimated this year's total sales growth would reach only about 7.8 to 8 percent due to slow growth in the first half, which was at 3.8 percent. (bbn)