Sarinah’s long-term growth strategy centres on a rejuvenation of its target customer profile to adapt to a domestic demographic structure in which more than half of the population is under the age of 30. To effectively expand its consumer base and capture the high potential youth segment of the market, the state-owned enterprise hosts innovative programmes demonstrative of one of its corporate mission of becoming a popular lifestyle centre in Indonesia. Events such as Young Muda Bazaar, a bazaar that works in partnership with young Indonesian entrepreneurs, and the Young Batik Fashion Show, an event catering to today’s fashion trendsetters, are but two examples of the company’s new strategy to strengthen its position as a trend-savvy lifestyle centre in Indonesia.
Supporting Sarinah’s offerings and events in leisure and lifestyle is a property management division set to carry out the development of existing landbanks surrounding the Sarinah Thamrin Department Store. The company’s property arm has extended its activities to the city of Bandung where Sarinah will undertake a renovation project in the historic Braga area that is renowned as a local tourist destination in West Java; the project is set to become the Hotel Sarinah Braga thus illustrating Sarinah’s unwavering mission of becoming a leading lifestyle centre in key cities throughout Indonesia. To ensure that Sarinah takes advantage of attractive market opportunities, the property management division will also undertake a similar project in Semarang as well as launch new specialty outlets in secondary cities as a means of establishing numerous lifestyle centres throughout the archipelago. Following on from the current consumer preference for malls providing a full range of shopping outlets, restaurants and recreational amenities, this development will culminate in one of Indonesia’s largest lifestyle centres.
In carrying out future plans to expand upon the number of sought-after lifestyle centres found in Indonesia, Sarinah will benefit from its ability to attract major brand name tenants that meet increasingly international preferences for food and beverages. Consistently posting occupancy rates at 90% and above, the company’s foremost tenants include Chilli’s, an American restaurant chain with global brand appeal, as well as fast food outlets McDonald’s and KFC; the company additionally offers a large variety of coffee which is demonstrative of Sarinah’s capacity to adapt to the rising consumption of coffee in Indonesia. Having already identified and acquired prime real estate in key centres of commercial activity, Sarinah is poised to make available even more advantageous lifestyle centres offering direct access to a local consumer base characterised by a spend-first mindset.