, Indonesia

Indonesia to see retail sales recovery in Q2

The country’s consumer confidence saw a slight month-on-month uptick in February.

Indonesia’s retail sales are expected to see a recovery in Q2 after the numbers fell to their lowest levels in February. This is expected to be driven by the government's compulsatry vaccination drive, whcih started in mid-Janurary, according to a report from Fitch Solutions.

The country’s consumer confidence fell 27% YoY in February amidst the soaring number of daily COVID-19 cases recorded in the country during the first two months of the year. However, it saw a slight uptick to 85.8 during the month, compared to 84.9 January.

“The consumers felt more confident in February 2021 due to their perception of current economic conditions, and expectations of economic conditions moving forward, remaining positive and relatively stable, which is bolstered by expectations of incomes over the next six months,” the report stated.

At the same time, household spending in Indonesia is expected to begin to recover in 2021, growing by 5.8% YoY, amidst the rollout of vaccines after the pandemic led to an estimated contraction of 1.0% in 2020.

All main consumer spending categories are projected to return to positive growth in 2021. Food and non-alcoholic drink spending were prioritised in household budgets in 2020, and so growth in spending on these items, while remaining positive, will be slightly lower during the year.

Meanwhile, spending within other categories are estimated to have recorded significant contractions over 2020, as households cut spending on non-essential items. As such, these categories will grow from a relatively lower base over 2021.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Retail Asia in your inbox

Customers take center stage: Using innovation to grow your business

This exclusive Retail Asia virtual round table on 28 May will guide retailers on how to meet their customer's needs and sustain their business during the pandemic.

How NTUC FairPrice's consumer centric mindset became its golden goose

The "FairPrice on Wheels" community initiative brings daily essentials to mature estates with higher concentration of low-income seniors.

US-based Sam’s Club launches first Huizhou store

The store offers sampling activities, free eye and hearing tests, and wine tasting.

Hongkong Land launches shopping mall in Chongqing

It features a seven-storey botanical garden and sports and cultural interactive offerings.

Revenge spending boosts South Korea’s luxury retail

Both women’s and men’s clothing stores saw a rise in sales this year.

How South Korea’s supermarkets lure in neighborhood customers

Customers have been shopping more through local shops and online platforms.

Shinsegae’s Emart offers ‘e-money’ to customers

Shoppers can save up to 3,000 points by finding products sold cheaper elsewhere.

South Korea’s department stores scramble for better products

The rapid rise of online shopping has weakened their status amongst SMEs.

Alibaba's Taobao Deals to roll out more direct-from-producer products

The app saw 100 million users during its first year.

JD’s Seven Fresh launches first Shenzhen store

Customers can get imported produce as well as local fruits from Guangdong.