Reshaping Business

At the height of COVID-19 pandemic, Hero Supermarket executes a major decision to divest Giant. Now, it is recalibrating business to regain profitability.

- Sonya Angraini

About five months ago, PT Hero Supermarket made the surprising announcement that it would stop operating Giant supermarket and closed all of Giant outlets by the end of July. The company cited the change in market dynamics and consumer behaviours as the reasons behind the closure. “We have done strategic review of all of our businesses. In particular the food business and the market format, especially in areas where we have struggled,” says President Director Patrik Lindvall. He adds that the closure of Giant was a well-thought through process, but the COVID-19 pandemic forced the company to accelerate the plan’s execution.

With Giant’s closure, Patrik says the company will have better opportunities and resources to develop its three remaining business brands, namely Hero Supermarket, Guardian, and IKEA. The company has laid out various plans for each business as they are currently at different maturity stages. “If you want to be successful, regardless what business you are in, you need to be very clear on your purpose and whom you are serving, and do that consistently,” he notes.

Hero Supermarket is now in a consolidation stage, and the company’s focus will be more on improving the shopping experience at existing stores. “You always attempt to grow, but at the same time, the first thing you do is to keep your promise. Hero (Supermarket) already has presence in terms of location,” says Patrik. Over the past six months, the company has opened six new Hero stores across four provinces, bringing the total number to 27. He adds that the company is looking into converting some Giant stores into Hero Supermarkets, but the plan does not necessarily have to happen this year.