Turnover of Indonesian minimarkets has grown sharply. In 2014, the value of sales is expected to jump 13.5 percent to IDR 94 trillion (USD $8.3 billion) compared to this year's projection of IDR 82.9 trillion (USD $7.3 billion). Indonesia's large population (over 240 million) and rapidly urbanizing society gives rise to high demand for nearby shops where people can find their daily needs. In recent years, outlets of minimarkets have been mushrooming in Indonesian cities, particularly on Java. Outside the island of Java, there is still ample room for growth.
In the last five years minimarkets have grown rapidly at the expense of supermarkets and hypermarkets. Based on data from the Indonesia Retail Employers Association, the number of supermarkets fell from 1,477 stores in 2008 to 1,229 stores in 2011, while the number of minimarkets jumped from 10,289 to 16,720 in the same period. Indonesia's expanding middle class increasingly opts to do grocery shopping in minimarkets as these stores are everywhere in the cities on Java and Bali (thus easier access from one's residence) and some products are cheaper than in the supermarket or hypermarket.
The value of sales in minimarkets has grown an average of 26 percent per year in the last five years. This growth is expected to slow to 13 percent this year and in 2014. The largest minimarket chains in Indonesia - Alfamart, Indomaret and 7-Eleven - all have ambitious plans to expand their businesses through increasing the number of outlets.
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