Scribd
Upload
24 views2 pages

Critial Thingking

Hero Group plans to close all 75 of its Giant supermarket outlets by the end of July due to a 34% drop in revenue from the pandemic's impact on retail sales. The company aims to focus on expanding its IKEA, Guardian, and Hero supermarket stores instead by converting some Giant locations. Hero saw a 33% decline in expenses but still reported a net loss for the first quarter of 2021 as supermarkets decline in popularity worldwide and more consumers shop online.

Uploaded by

Lizaa Amalia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
24 views2 pages

Critial Thingking

Hero Group plans to close all 75 of its Giant supermarket outlets by the end of July due to a 34% drop in revenue from the pandemic's impact on retail sales. The company aims to focus on expanding its IKEA, Guardian, and Hero supermarket stores instead by converting some Giant locations. Hero saw a 33% decline in expenses but still reported a net loss for the first quarter of 2021 as supermarkets decline in popularity worldwide and more consumers shop online.

Uploaded by

Lizaa Amalia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Name: Liza amalia

Path: CC-35
ILT SS-Critical Thingking
Resume
Class Exercise – Using 5 Whys

Hero Group to close all Giant supermarkets by August


Publicly listed retail group PT Hero Supermarket plans to close all of its Giant supermarket
outlets by the end of July to improve its finances after the pandemic whammed Indonesia’s
retail industry. The group, which operates 75 Giant outlets according to its website, saw its
revenue drop 34 percent year-on-year (yoy) to Rp 1.7 trillion (US$118 million) in this year’s
first quarter as mobility restrictions limit shop operating hours and shifted more consumption
online.

“This decision was not easy, but we believe this is the best decision in Hero’s long-term
interest and for employees under the company,” said PT Hero Supermarket president director
Patrik Lindvall in a statement on Tuesday.

Hero aims to focus on expanding its IKEA furniture retail, Guardian pharmacy and Hero
supermarkets outlets. In its statement, the group explained that it planned to convert five of
the Giant outlets into IKEA stores and several others into. Lindvall acknowledged that
supermarkets were declining in popularity worldwide, but he also expressed confidence that
demand for household appliances, beauty products and daily needs for upper -class
Indonesians had strong growth potential.

Hero’s revenue drop was almost matched by a 33.2 percent year-on-year decline in expenses,
such that the company booked a Rp 1.64 billion ($114.470) net loss in the first quarter of
2021, the company’s financial report shows. Bank Indonesia’s retail sales index dropped
below a reading of 200 in April last year when the country began implementing large -scale
social restrictions (PSBB) and has remained below that level ever since, settling at 187.9 in
March this year. In a sign of improvement for the industry, retailers surveyed by the central
bank said they expected the figure to return to above 200.

Source: The Jakarta Post 26/05/2021,

Who: Hero Grub, Consumen, Central Bank


Situation:
 group PT Hero Supermarket plans to close all of its Giant supermarket outlets by the
end of July
 planned to convert five of the Giant outlets into IKEA stores and several others into
Complication:
 Hero’s revenue drop was almost matched by a 33.2 percent year-on-year
 supermarkets were declining in popularity worldwide
Problem Statement:
 why shoppers lose interest in Hero supermarket?
why A: because they prefer instant ones like online retail
 Why Shoppers don't just visit offline stores?
Why B: because the distance of the hero supermarket is far from their home
 Why Hero supermarket doesn’t have online service?
Why C: because supermarkets were declining in popularity worldwide
 Why supermarket declining popularity?
Why D: Because items in the supermarket are incomplete
 Why the items doesn’t complete?
Why E: because many items are expired and not sold so they are thrown away

You might also like