PT Hero Supermarket Tbk
FormerlyPT Hero Mini Supermarket (1971-1991)
TypePublic PT
IDX: HERO
IndustryRetail
Founded5 October 1971 (1971-10-05) in Jakarta, Indonesia
Founders
  • Muhammad Saleh Kurnia
  • Nurhayati
HeadquartersGraha Hero, Bintaro Jaya Sector 7,
South Tangerang, Banten
,
Indonesia
Number of locations
341 stores (2022)
Key people
Patrik Lindvall
Ipung Kurnia
Brands
Number of employees
4,481 (2023) Edit this on Wikidata
ParentDFI Retail Group (88.6%)[lower-alpha 1] (1998—present)
Websitewww.herosupermarket.co.id
www.hero.co.id

PT Hero Supermarket Tbk, commonly known as Hero, is one of Indonesia's largest retailers group,[1] which operates Hero hypermarkets and supermarkets, Guardian Healthy & Beauty Stores and IKEA.[2][3] It is a subsidiary of DFI Retail Group,[4] and is indirectly owned by Jardine Matheson.[1]

Focusing on middle income segment customers, the company's first store opened in 1971. As per 2022, the company operates 341 stores throughout the country.[5]

History

1954 - 1971: The Roots

The roots of Hero Supermarket could be traced back to 1954, where a 19 year old Muhammad Saleh Kurnia started "CV Hero" with his brother, Wuo Guo Chang. 5 years later, his brother quit and Kurnia had to continue the business himself.[6]

In the 1960's, Kurnia realized that many Indonesians and expatriates often go to Singapore just to purchase western imported food and beverages. He realized an opportunity where he could just import the goods for the locals and expats to purchase locally in Indonesia.[6] After an advice from a Canadian friend Charles Turton, Kurnia and his wife (Nurhayati), went to Singapore, to try imitate the way Singaporean stores selling the products. Then in 1971, the couple opened the first Hero store in Kebayoran Baru, Jakarta.[6]

1971-1989: Hero Supermarket

During the Indonesia's New Order period, Hero and it's competitor Gelael stores, are the only major supermarkets in Jakarta, with Hero having 9 stores in Jakarta alone.[6] Most of Indonesians purchased their groceries in the wet markets, while supermarkets are considered prestigious shopping place for the upper class.[6]

1989-2010: Initial Public Offering and Expansions

The company then went public in 1989,[6] where the founders retain 50.1% shares, and the remains were owned by MPPA Retail Group (part of Lippo Group) for 10.42%, Mulgrave (DFI Retail Group) for 7.63%, SSV Netherland BV for 10.20%, and public for 21.65%.[7]

In 1990, Hero started its Guardian Pharmacy operation, and the minimarket "Starmart" in the following year.[8]

In 1992, the founder MS Kurnia passed away in 1992, the business is continued by his son, Ipung Kurnia.[9]

In 2002, the group started its Giant hypermarket operation.[9]

2010-2019: DFI Retail Group as the New Majority Shareholder

In 1998, the founders issued a convertible bond for US$ 36.4 million, which purhased by Mulgrave.[7] In 2010, the Mulgrave exercised the convertible bonds for 24.54% stake in the company, making DFI Retail Group the new majority shareholder of PT Hero Supermarket Tbk.[7] MPPA protested the action, and went separate to build their own store "Hypermart".

In 2014, Hero acquired a license to operate IKEA stores in Indonesia.

In 2016, the company sold their minimarket "Starmart" operation to PT Fajar Mitra Indah (part of Wings Group[10][11]), where the stores will be operating as FamilyMart under the new ownership.[12][10]

2019-2021: Retirement of "Giant" hypermarket stores

The rapid growth of convenience stores and e-commerce in Indonesia, shifted the consumer behaviors, where the consumers tends to shop online and minimize trips to offline stores.[13] This shift impacted the company, where the company responded by downsizing its Giant outlet starting from 2019.[14][15] In 2021, the CEO of the company, Patrik Lindvall, said that the management has closely seen the trends of global hypermarket industry, with Walmart, Carrefour, and Tesco moving away from the hypermarket industry, where the consumers prefer to shop in smaller and nearby stores.[15]

The company decided to retire the Giant brand effective in 31 July 2021.[16] The management said that the decision is not only due to the COVID-19 pandemic, but also the changes in consumer behavior.[15]

2021-Present: Focus on Hero, Guardian, and IKEA.

With the closure of Giant brands, the management will focus on the operation of Hero, Guardian, and IKEA.[16] The trend for Hero Supermarket as the upper-class supermarket segment, is still promising and less fragile.[15] The management believes that the new brand portfolio focus, mainly Guardian and IKEA, is diverse and will not only serve the upper-class segment.[15]

The management will convert the previously Giant stores to IKEA or Hero Supermarket.[17]

Brands

Currently Operating

  • Hero (1971 - present), supermarket
  • Guardian (1990 - present), a pharmacy and health & beauty stores
  • IKEA (2014 - present), exclusive license to operate in Indonesian market

Previous Brands / Not Operating

  • Giant (2002 - 2021), branded as "Giant Extra" for hypermarkets and "Giant Express" for supermarkets
  • Starmart (1991 - 2016), divested minimarket operation, now operating as FamilyMart

Slogan

  • Rumah Belanja Keluarga (Family Shopping House, 1987–1992)
  • Memberi lebih dari yang Anda bayarkan (Give more than you pay for, 1992–1997)
  • Kejutan Segar Setiap Hari (Fresh Surprise Every Day, 1997–2000)
  • Think Fresh. Shop Hero (2000–2005)
  • always my hero! (2005–2009)
  • The fresh food people (2009–present)

References

  1. ↑ As of 31 December 2019, 63.59% of all shares outstanding are owned by Mulgrave Corporation BV, and another 24.91% are owned by The Dairy Farm Company Limited. Both are wholly owned indirect subsidiaries of DFI Retail Group Holdings Limited.
  1. 1 2 "PT Hero Supermarket Tbk". Nikkei Asia. Retrieved 2024-01-15.
  2. ↑ Desan, Jayanthi (17 December 2015). "CR Talk - Looking back and ahead". The Sun Daily. Retrieved 25 December 2015.
  3. ↑ "Hero to open more stores". The Jakarta Post. 19 June 2015. Retrieved 25 December 2015.
  4. ↑ Lindvall, Patrik (17 March 2023). "Announcement: PT Hero Supermarket Tbk Full Year 2022 Results" (PDF). DFI Retail Group. pp. 3–5. Retrieved 15 January 2024.{{cite news}}: CS1 maint: url-status (link)
  5. ↑ "2022: Annual Report & Sustainability Report" (PDF). PT Hero Supermarket Tbk. 2022. p. 8.
  6. 1 2 3 4 5 6 Ahsan, Ivan Aulia. "Sejarah Supermarket Hero: Agar Bule Tak Perlu Belanja ke Singapura". tirto.id (in Indonesian). Retrieved 2024-01-15.
  7. 1 2 3 "Pendiri Hero Lepas 24,54% Saham ke Dairy Farm Rp 255,268 Miliar". detikfinance (in Indonesian). Retrieved 2024-01-15.
  8. ↑ "Hero - Sejarah Perusahaan". www.hero.co.id. Retrieved 2024-01-15.
  9. 1 2 saleh, tahir. "Kisah HERO: Dari Kebayoran, Lippo, hingga Dicaplok Jardine". CNBC Indonesia (in Indonesian). Retrieved 2024-01-15.
  10. 1 2 Mediatama, Grahanusa (2016-02-24). "Hero lepas Starmart ke Family Mart". kontan.co.id (in Indonesian). Retrieved 2024-01-15.
  11. ↑ Mediatama, Grahanusa. "Anak Usaha Wings Group, Family Mart Ekspansi Gerai Kopi Pakai Robot". PT. Kontan Grahanusa Mediatama (in Indonesian). Retrieved 2024-01-15.
  12. ↑ "Hero - Press Release: Kesepakatan Bersama antara PT Hero Supermarket Tbk (HERO Group) dengan PT Fajar Mitra Indah (Family Mart) mengenai Peralihan Sebagian Besar Gerai Starmart kepada FamilyMart". www.hero.co.id. Retrieved 2024-01-15.
  13. ↑ "Navigating the shifts in consumer behavior in Indonesia". NIQ. 2023-05-22. Retrieved 2024-01-15.
  14. ↑ Sandi, Ferry. "2021 Banyak Ritel Bertumbangan: Giant Tutup Selamanya di RI!". CNBC Indonesia (in Indonesian). Retrieved 2024-01-15.
  15. 1 2 3 4 5 Indonesia, Bisnis. "CEO HERO Patrik Lindvall : Ini Adalah Jalan Terbaik - Bisnis Indonesia". Bisnisindonesia.id (in Indonesian). Retrieved 2024-01-15.
  16. 1 2 Timorria, Iim Fathimah (2022-12-05). "Usai Tutup Giant, Ini Bocoran Ekspansi Pengelola HERO dan IKEA pada 2023". Bisnis.com (in Indonesian). Retrieved 2024-01-15.
  17. ↑ Sandi, Ferry. "2021 Banyak Ritel Bertumbangan: Giant Tutup Selamanya di RI!". CNBC Indonesia (in Indonesian). Retrieved 2024-01-15.
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