The current retailers’ expansion to Surabaya is generally in line with the developers’ view on the improving consumption level and purchasing power, especially for middle-upper class malls. For the past few years, we still witnessed retailers continuously penetrating Surabaya. Nonetheless, the retail market will become more challenging for landlords because of the anticipated supply pipeline, which might create unbalanced situation for supply and demand.
The retail market in Surabaya was increasingly driven by the transformation of the mall concept, as it impacts and changes one’s lifestyle. Landlords are required to be creative in selecting tenants that can meet the current market needs, and if necessary, replace them with products and concepts that meet current market trends.