Indonesian Minimarkets: The New Kings of Retail

According to a report from the United States Department of Agriculture (USDA) titled “Indonesia: Retail Foods” in the July 2023 edition, three minimarkets dominated the modern retail market in 2022. The sales of these three minimarkets - Alfamart, Indomaret, and Alfamidi - surpassed those of hypermarkets and supermarkets such as Super Indo, Transmart, Carrefour, and Hypermart.

The report stated that Alfamart generated sales revenue of US$7.62 billion in 2022, up 40 percent from 2021. This achievement put Alfamart ahead of Indomaret, which had been in the top position for four consecutive years.

Indomaret was in second place with sales revenue of US$7.6 billion, growing 22.7 percent year-on-year (YoY). Meanwhile, Alfamidi recorded sales of US$1.1 billion.

The report also stated that the total value of food retail sales in Indonesia reached US$100 billion, up nine percent YoY. Traditional markets still dominated the food and beverage retail sector with a market share of 77 percent, although they continued to lose ground to modern shops and e-commerce.

The convenience store was the largest segment in the modern retail range and was expected to continue to increase the number of outlets.