To some extent, the pressure on the retail industry still remains. Some big stores continued to close, as a result of dwindling sales performance. On the brighter side, some retailers are actively expanding. According to Oxford Economics, private consumption is stabilising although the growth is expected to plateau at around 5.3% in 2019-2020. They also expect more accommodative monetary policy to support spending. The Bank Indonesia Consumer Survey in August 2019 also said consumer optimism has been maintained in the optimistic zone.
We recommend mall owners to consider reconfiguring their existing spaces and optimising tenancy mix in order to improve rent. Incorporating co-working spaces within a mall may be a way to lure more people and improve the lifestyle concept.