INDONESIA'S RETAIL BUSINESS DEVELOPMENT STRATEGY WITH THE AHP (ANALYTICAL HIERARCHY PROCESS) METHOD

Abstract

Retail growth in Indonesia in the last 5 years has decreased, whereas the daily consumption needs of a country with a population of 265 people certainly require supplies from the retail business. The Retail Sales Index reported by Bank Indonesia in 2019 only grew 3.98%, this decline has occurred since 2014 at 14.63%, continues to fall to the lowest level of 2.93% in 2017. The Global Retail Development Index (GRDI) places Indonesia is in 5th place. up 3 ranks compared to 2017, and Indonesia's economic growth is stable at around 5%, Indonesia's economic growth in 2019 reached 5.02%, a slight decrease compared to 2018 which was 5.17%. This study aims to find alternative strategies needed to improve the performance of the hypermarket format retail business in Indonesia. The Analytical Hierarchy Process (AHP) method is used to get strategic priority for retail business development. Retail experts asked to assess are; Retail practitioners, Aprindo (Indonesian Retail Association), Academics, Ministry of Trade experts, Deputy of the Coordinating Ministry for Economic Affairs. Various references and input from resource persons compiled 14 strategies that will be assessed by experts; (1) Determination of Product Variation and Quality, (2) Low Prices, (3) Convenient and Easy to Reach Location, (4) Mixed use, (5) Store Transformation, (6) Resizing Outlet, (7) Automation, (8) Distribution System, (9) Omni-Channel, (10) Combination of offline and online outlets, (11) Perpu / Legal Review, (12) Loyalty Program, (13) HR Competence, (14) Delivery. The findings of this study are to get six priority strategies; retail automation, selection of good product range and quality, combination of offline and online outlets, omni channels, low prices and store transformation.