Spring Season for Local Retail Stores in Padang

Like flowers that bloom in the spring season, local modern retail businesses have been thriving in Padang city over the last few years. The business activity of local entrepreneurs has set the regional economy in motion.

KOMPAS/YOLA SASTRA

Front view of Aciak Mart Proclamation branch, Padang City, West Sumatra (West Sumatra), Monday (20/3/2023). Aciak Mart is one of the modern retailers owned by local entrepreneurs which has grown rapidly in recent years.

A dark blue, white and red supermarket stands on a corner of a bridge. The glass panes dominate the building’s walls, with a fresh coating of its eaves and name board. Several motorcycles and cars are parked in its relatively spacious front yard.

The store on Jl. Proklamasi, Padang city, is none other than the 12^th branch of Aciak Mart, a modern supermarket owned by local entrepreneur Amril Amin, called Aciak, in Padang. The store supplies the daily needs of consumers from a hospital and offices around its location, officially opened on 11 March.

The Proklamasi branch of Aciak Mart was not the only one opened by Aciak in the past few months. Previously, two other stores were opened, which were Aciak Mart, Belimbing branch, and Grand Aciak Mart, Aia Pacah branch, on 1 Feb. 2023 and 11 Sept. 2022.

“Our stores have only spread over Padang city. Next month [April 2023], we will try to open one in Pariaman city,” said Amril, the owner and director of Aciak Mart, concurrently deputy speaker of the Padang Legislative Council, on Sunday (19/3/2023).

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Aciak Mart’s expansion reflects the growth of local modern retail businesses in Padang and its vicinity, in the form of supermarkets and large department stores. Besides Aciak, stores of the same types owned by other local entrepreneurs are also flourishing, including those of Budiman group, Citra group and Dalas-Smile group.

Budiman group, owned by Bukittinggi entrepreneur Haji Yasmar, now has 16 stores. The two newest stores in Padang opened last year are Budiman Supermarket, Ulak Karang and Anduring branches. In Padang the group has nine stores, four in Bukittinggi, two in Payakumbuh and one in Agam.

Citra group opened three stores in Padang last year, which were Citra Supermarket, Siteba branch; Citramart, Cengkeh branch; and Grand Citra Supermarket, Sutomo branch. The retail network owned by Guspardi Gaus has 20 stores: 16 in Padang, 2 in Sijunjung, 1 in Pasaman and 1 in Jakarta.

KOMPAS/YOLA SASTRA

A female buyer is selecting products at Dalas Supermarket, Jalan Andalas, Padang City, West Sumatra (West Sumatra), Saturday (18/3/2023). Dalas Swalayan is one of the modern retail owned by local entrepreneurs which has developed in recent years.

Dalas-Smile group, owned by Irawati Meuraksa, opened its new store, Dalas Supermarket, Bandar Buat branch, on 30 Dec. last year. In total, this group has four stores in Padang at present.

“After the pandemic was under control, especially last year, major retail stores, such as Aciak Mart, Citra, Budiman and Dalas, emerged. In [almost] every district, new stores appeared,” said Nengsih, head of the business development division of the Padang Trade Office.

Nengsih cannot yet provide data on the number of newly opened local modern retail stores in Padang. However, data from the Padang Trade Office in February 2022 recorded that at least 297 stores of the supermarket category in the capital of West Sumatra were dominated by those selling daily necessities.

After the pandemic was under control, especially last year, major retail stores, such as Aciak Mart, Citra, Budiman and Dalas, emerged.

The thriving local modern retail stores in Padang are inseparable from the changing shopping practice of the public. The supermarket concept of complete products, relatively low prices, neatly-arranged, clean and cool places coupled with the digital system and noncash transactions, has been a demand of urban residents.

“For my monthly needs like shampoos and soap I go shopping at the supermarket because it is more convenient and offers complete goods. The merchandise is also well arranged, which makes it easier for me to find the items I want to buy,” said Titi, 38, a resident of North Padang district.

KOMPAS/YOLA SASTRA

View in front of Budiman Swalayan branch of Ulak Karang, Padang City, West Sumatra (West Sumatra), Thursday (16/3/2023). Budiman is one of the modern retailers owned by local entrepreneurs which has grown rapidly in recent years.

Government protection

The absence of modern retail competitors with national networks also becomes a determining factor. This is closely related to the regional administration’s protection for local modern retail businesses.

The West Sumatra regional government does not prohibit the presence of national-network retail stores, but the local regulation makes the expansion of external retailers difficult. The Padang Mayor’s Regulation No.53/2021, for instance, obligates supermarkets to make available 30 percent space to the marketing of micro, small and medium enterprises (MSMEs) products.

Amril said the protective policy of the regional administration in West Sumatra supported local retail entrepreneurs. The regional administration provides opportunities for local business players to embark on the undertakings. He expressed gratitude for the policy adopted by the Padang city administration and the West Sumatra provincial government. “If possible, this tradition should be maintained so there will be an even development between local and national entrepreneurs,” said Amril.

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Andalas University’s Development Economics Professor Syafruddin Karimi said the growth of local supermarkets had a positive impact on the regional economy. The presence of new stores has created job opportunities so that unemployment is reduced and the income of the local people is raised.

Aciak Mart, Budiman, Citra and Dalas employ dozens of people per store according to their categories. Dalas Supermarket, Bandar Buat branch, for example, employs 50-60 people, mostly local residents.

In addition, continued Syafruddin, local supermarkets frequently cooperate with local MSMEs as partners. This assists in the growth of MSMEs and increases their turnover. “Local minimarkets are more likely to use local products and services so that transaction proceeds circulate more in the local economy and help the growth of the region’s economy,” added Syafruddin.

This article was translated by Aris Prawira.