On the 24th, Lotte Mart announced that it has transformed its Bali store located in the Denpasar area of Indonesia into a 'hybrid store' that combines the strengths of wholesale and retail.
This store serves as a new store format that encompasses both business customers and general consumers, and it is expected to set a new standard in the local retail market.
Due to its geographical characteristics made up of over 12,000 islands, modern retail formats such as online, large discount stores, and supermarkets have developed in major cities in Indonesia, while other regions have a wholesale distribution structure centered around small retailers due to logistics infrastructure constraints.
Since entering Indonesia as the first domestic retailer in 2008, Lotte Mart has been operating 36 wholesale stores and 12 retail stores focused on major cities, all centered around transportation hubs.
In particular, as retail stores begin transforming into grocery specialty stores that prominently feature K-food, starting with the Gandaria City store in January 2024, the company aims to provide differentiated experiences to local consumers and drive growth.
Existing wholesale stores primarily serve business operators in the Horeca (hotel, restaurant, café) sector and retailers, focusing on large-volume products, which has resulted in relatively lower customer attraction compared to retail stores.
In this regard, Lotte Mart presented a new growth model through the renovation of the Bali store by combining the strengths of wholesale and retail into a hybrid store. The strategy is to efficiently provide popular wholesale products to business customers while presenting differentiated grocery content focused on K-food to general consumers, thereby securing both revenue and growth.
The Bali store was selected as the first hybrid store due to its excellent access to key logistics lines and its optimal location, which has about 120,000 behind-demand customers within a 3 km radius and more than 1.2 million tourists monthly.
Lotte Mart has renovated the Bali store, previously operated as a 2,000 pyeong wholesale store, into a new grocery specialty store approximately 1,500 pyeong in size, centered around K-food and fresh products, while reducing the wholesale section to 500 pyeong, focusing on popular items.
The newly opened Bali store has filled 90% of its floor area with food items. In particular, it has expanded the customer experience by placing F&B content such as 'Cook Kitchen,' a specialized space for ready-to-eat food centered around Long Deli Road, its own pizza brand 'Cheese and Dough,' and 'Kopea Café and Bakery.'
The core content of this renewal, 'Kopea Café and Bakery,' is expected to serve as a landmark for the store, showcasing the rare authentic European-style bakery culture in Bali, thereby extending the dwell time of visitors. The store offers a variety of bakery items, including specialty coffee made with Kali Kintamani beans, sandwiches, pastries, and Korean-style snacks.
The wholesale space has evolved to focus primarily on best-selling products while offering products and services tailored for professional customers. It has introduced large-volume pork belly and sushi-grade fish for Horeca customers and established a 'Bakery Factory' to meet the demand for large-volume bakery items, aiming for differentiation.
Processed foods are composed mainly of verified popular items based on existing sales data, securing price competitiveness at a low level, and the selection of essential consumables for business and facilities, such as bedding, slippers, hygiene kits, and large-volume detergents has also been significantly enhanced.
In the retailer zone for wholesalers, popular brands and large-volume products in high local demand have been expanded, and the largest 'sachet product zone' in the Bali region has been established. Sachet products are produced in small package units for daily necessities, which are key resale items for small retailers.
Starting with this Bali store, Lotte Mart plans to gradually expand hybrid stores that combine the strengths of wholesale and retail by precisely analyzing the characteristics of the commercial district and customer demand. Through this, it aims to continue its growth in the Indonesian retail market while providing new shopping experiences to both local customers and global tourists and leading the local retail culture.
Kim Tae-hoon, the head of Lotte Mart Super Indonesia, noted, 'Bali is an international tourist destination where diverse customer segments coexist, making it the ideal place to apply an innovative model that combines wholesale and retail.' He added, 'This renewal will serve as an opportunity for our business in Indonesia to take a step up by providing convenient shopping, differentiated culinary experiences, and specialized services to local residents, tourists, and professional customers.'