RETAIL SECTOR UPDATE (EP, OUTLOOK : NEUTRAL) Retail Wars: are The Stores Dead? Sales in Retail Sectors Remain Weak in 1H17 Bank Indonesia reported that the Real Retail Sales Index grew 6.3% YoY in June 2017, against June 2016's high point of 16.3% YoY. While data on retail sales growth in 2016 stayed in the double-digits, since early 2017 it has slipped to 10% or even below, into single digits. The momentum of a new school year, along with the Idul Fitri festive in 2Q17, distorts consumer priorities; ultimately, retail sales growth in this festive season was not as high as it was in 2016. Risk to Outlook Based on Nielsen Indonesia's research, overall retail sales growth during 1H17 was only 3.7%, while over the previous few years it had recorded double digits for the same period. The closing down of several retail outlets and stagnation of the shopping center occupancy rate is evidence of a slowdown in the industry. Decreasing budgets for consumption, turning to saving
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