...Growth at Slower Rate: Fitch Ratings believes the revenue of Indonesia's modern grocery- retailers will rise at a slower pace of nearly 20% in 2016, compared with 2014-2015. This will be due to fewer stores openings and lower same-store sales growth (SSSG) from a confluence of weaker consumer confidence, reduced purchasing power and fiercer competition. Convenience stores will continue to be the best-performing channel in terms of growth and revenue size, given their flexibility to penetrate areas with relatively low traffic, and generate over IDR100bn in revenue by 2016, compared with approximately IDR80bn in 2014. Solid Long-Term Fundamentals: Fitch, however, believes that the long-term growth outlook of modern retailing in Indonesia remains solid due to its relatively low penetration rate of 15%, compared with other emerging markets in the region such as Thailand (63%) and the Philippines (28%). In addition, growth in income will shift consumer preference towards the better shopping...
