Abstract

Indonesia is a potential market for modern retail business, supported by the shifting behavior of Indonesians from shopping in traditional markets to modern retailers. The main objective of this research is to find modern retail management model to improve the competitiveness of traditional retails in customer service field. Research method using descriptive research method and policy research. The unit analysis is traditional Retail Traders and Modern retail traders in Blitar District. Data analysis techniques use descriptive analysis to describe findings and policies that involve interested parties to get the right model. The research results show there are 248 modern retail and 2,401 traditional retailers. To be able to compete with modern retail, traditional retail should be cleaned up by doing service plus plus with aim to sustainable maintenance of customer to remain faithful as customer. Service plus plus which is intended is the customer to buy goods do not have to come directly to the store, but can be done with Purchase Order by WhatsApp or SMS, Delivery Service, and Pay After the goods delivered. Keywords: Traditional RetailS, Service Plus Plus and Sustainable Maintenance Model

Highlights

  • The word retail comes from the French ritellier which means to cut or break something

  • The results of this study indicate that in order to compete with modern retailers, the traditional retailers have to increase the service to the consumers in order to have competence to survive in the retail business in accordance with retail mix theory from Utami (2006) from the five elements of Place, People, Product, Price, Promotion

  • The number of modern retail traders in Blitar district threatens the existence of traditional retail, based on Perda No 17/2011 franchise distance with traditional market at least 1 kilometer but this rule has not been implemented

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Summary

Introduction

The word retail comes from the French ritellier which means to cut or break something. The management of the retail business is not just about opening a store and preparing complete items, but a retail business should see and follow the development of marketing technology to succeed and have competitive advantage. The development of retail business in Indonesia today is very rapid, especially modern retailers in all variations of its type. Several factors supporting the development of modern retail business include the opening of market opportunities, the development of manufacturing business that will supply its products to the retailer, and the government's efforts to boost economic growth by one of them developing the retail business. Based on data from the Association of Indonesian Retail Companies from 2007-2012, the number of modern retail outlets in Indonesia an average growth of 17.57% per year. In 2007, the number of retail business in Indonesia is still

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