Wholesale Space Streamlined from 2,000 to 500 Pyeong
1,500 Pyeong Retail Area Reorganized Around K-Food
Enhancing Competitiveness in the Indonesian Market
On August 24, Lotte Mart announced that it has renovated its Bali store, located in Denpasar, Bali, Indonesia, into a "hybrid store" that combines the strengths of both wholesale and retail.
Indonesia, with its unique geography of over 12,000 islands, has developed modern retail formats such as online shopping, large discount stores, and supermarkets in major cities. However, outside these urban centers, wholesale distribution is dominated by small retailers due to logistical infrastructure limitations.
In response to this market environment, Lotte Mart became the first Korean distributor to enter Indonesia in 2008. Since then, it has operated 36 wholesale stores centered around transportation hubs and 12 retail stores in major cities. Since January 2024, retail stores have been converted into grocery specialty stores with a focus on K-food, starting with the Gandaria City location, providing local consumers with a differentiated experience. Wholesale stores primarily target HoReCa (hotel, restaurant, cafe) businesses and small retailers, focusing on bulk products. As a result, their ability to attract new customers and general consumers is relatively lower compared to retail stores.
Lotte Mart is transforming its Bali store, which previously operated as a 2,000-pyeong wholesale store, into a hybrid model that combines the strengths of both wholesale and retail. The strategy is to efficiently provide popular wholesale products to business customers, while offering general consumers a differentiated grocery selection centered on K-food, thereby ensuring both profitability and growth potential. The Bali store was selected as the first hybrid location due to its excellent access to key logistics lines, a catchment area of approximately 120,000 residents within a 3km radius, and more than 1.2 million tourists visiting each month, making it an ideal site for the new format.
The Bali store now features a newly launched grocery specialty section focused on K-food and fresh produce, covering about 1,500 pyeong. The wholesale section has been reduced to 500 pyeong, focusing on popular items. Spaces have been separated by customer type to reduce congestion and enhance shopping convenience.
Notably, 90% of the store's floor space is dedicated to food. In particular, the "Long Deli Road" area features specialized spaces such as "Yorihada Kitchen" for freshly prepared foods, Lotte Mart's own pizza brand "Cheese and Dough," and "Coffea Cafe and Bakery," expanding the customer experience within the store.
"Yorihada Kitchen" is Lotte Mart's deli-specialized store representing globally recognized K-food culture, and has recorded over one million cumulative visitors in Jakarta, demonstrating its popularity in the local market. The store offers a variety of signature Korean dishes such as tteokbokki, gimbap, dakgangjeong, K-pizza, as well as desserts like bungeoppang and sipwonppang, all in one place. To meet the demand for convenient meals among tourists, the store has expanded its range of small-sized, value-for-money lunch boxes.
Coffea Cafe and Bakery introduces an authentic European-style bakery culture rarely seen in Bali. It is expected to increase visitor dwell time and serve as a landmark within the store. The bakery offers a wide lineup, including specialty coffee made with Kintamani beans, sandwiches, pastries, and Korean-style snack breads.
Additionally, the Bali store targets a diverse customer base by operating a "Salad Zone" reflecting the local vegan food culture, a "Fruit Specialty Zone" for middle-class customers and tourists, and an "International Zone" tailored to the area's many long-term Australian residents. In particular, the new "Must Have of Bali" store offers souvenirs and local specialties for tourists, providing a convenient one-stop shopping experience.
The wholesale section has been streamlined to focus on top-selling products, while further evolving its offerings and services for professional customers. For HoReCa clients, bulk items such as pork belly and sashimi-grade fish have been introduced for the first time, and a "Bakery Factory" has been established to meet large-scale bakery demand, setting the store apart from competitors. Processed foods are selected based on proven sales data, ensuring competitive pricing at the lowest levels. Essential consumables for business and facility use-such as bedding, slippers, hygiene kits, and bulk detergents-have also been significantly strengthened.
In the "Retailer Zone" for store owners, Lotte Mart has expanded its range of popular brands and bulk products in high local demand, and has established the largest "Sachet Product Zone" in the Bali region. Sachet products, which are daily necessities packaged in small units, are key resale items for small-scale distributors. This renewal has expanded the product lineup to include snacks, broadening the options available to local retailers.
Lotte Mart has also formed dedicated sales teams for each professional customer segment to strengthen tailored sales efforts and provide services optimized to customer needs. Various support systems have been introduced, such as free delivery and an easy reorder system, to enhance convenience for professional customers. By reducing the hassle of repeat purchases and supporting stable business operations for professional clients, the company aims to achieve both higher customer satisfaction and expanded business networks.
Starting with the Bali store, Lotte Mart plans to gradually expand hybrid stores that combine the strengths of wholesale and retail, based on precise analysis of market characteristics and customer demand. Through this strategy, the company aims to continue its growth in the Indonesian retail market, provide new shopping experiences to both local customers and global tourists, and lead the evolution of the local retail culture.
Kim Taehoon, CEO of Lotte Mart and Super Indonesia, stated, "Bali is an international tourist destination where diverse customer groups coexist, making it the ideal location to implement an innovative model that combines wholesale and retail. Through this renewal, we aim to provide convenient shopping, differentiated gourmet offerings, and specialized experiences to local residents, tourists, and professional customers, serving as a catalyst for the next stage of our business growth in Indonesia."
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