INTRODUCTION

Until the end of 2014, Alfamart has operated 9,800 stores, 39% was in Jabodetabek, 43% in Java
and Bali, and 18% was in Sumatra, Sulawesi and Kalimantan. Alfamart rapid growth give
positive and negative impacts for customers, other modern retail, and traditional retail. Alfamart
positive impacts for customers are the convenience in shopping (neat, clean, and practical), can
shop using the ATM, and some stores are open 24 hours. Alfamart negative impact for traditional
retailer is they hard to compete because of location distance, even some traditional retailers go
bankrupt. Competition between Alfamart and other modern retailers were increasingly tight, due
to large store number in the same area. Local investors easier to invest in franchise minimarket
because the capital required is not too large, so it's not surprising the number of store is
increasing. The report used secondary data (news and research). An analysis of various data
sources was conducted to provide solutions to problems.
BODY
Founded under the name of PT Sumber Alfaria Trijaya Tbk (Alfamart/The Company), which
began the business in trading and distribution, the Company then entered the minimarket sector
in 1999. Exponential expansions began in 2002 by acquiring 141 Alfaminimart stores that
brought the new name Alfamart. Today Alfamart is one of the leaders in retail business,
serving more than 3.0 million customers every day in more than 9,800 stores that spread in areas
of Indonesia. Alfamart provides affordable prices, high quality basic daily needs with friendly
services, clean and comfortable shopping atmosphere which is easily accessible. The Company
in 2014 implemented a product mix policy with composition of 70% food & beverage and 30%
non-food (health care, skin care, kitchen utensils, and other daily needs) in every store. The value
added service that was provided by Alfamart consist of electric pulse, token PLN, tax payment,
telephone bill payment, motorcycle credit, plane ticket, train ticket, online game voucher,
remittance, Alfaonline, etc. Supported by more than 70,000 employees, Alfamart is one of the
largest employers in Indonesia.
Until the end of 2014, Alfamart had operated 9,800 stores. Of the total number, 39% was located
in the area of Jabodetabek, 43% on Jawa and Bali Island, and 18% in Sumatera (North Sumatera,
Riau, Jambi, South Sumatera, and Lampung), Sulawesi (South and North Sulawesi) and

Kalimantan (West and South Kalimantan). All of the stores are located in strategic locations near
the centers of business, activities, residential areas, offices, etc, hence demanding a sufficient
system of distribution to guarantee the availability of supplies anytime for the respective stores.
The function of the warehouses as the supporting pillar for the 9,800 stores has been central in
the formation of the store network that becomes the Companys front guard. Modern retail which
is in head to head competition with Alfamart is Indomaret. Indomaret is also located in the
centers of business, activities, residential areas, offices that nearby with Alfamart. The traditional
retailers which located nearby will be hard to compete with these modern retailers, that offer
more products and services with competitive price and comfortable buying condition.
Badan Pusat Statistik recorded the growth of Alfamart increases by 6.1% annually, while
according to the Federasi Organisasi Pedagang Pasar Indonesia (Foppi), the traditional retail
decreased by 8% annually. Based on revenue in 2014, Alfamart recorded Rp 41.77 trillion, or
about 40.8% of total minimarket revenue in Indonesia, but still smaller than Indomaret that gain
43.2% of total minimarket revenue in Indonesia.
The culture and commitment of Alfamart is always improving service quality and focusing on
efforts of improvement toward the advancement. The Company is confident that the strategy,
which focuses on the service for all stakeholders, will create a more reliable community store.
Benefit that Alfamart as a modern retail offers to its customers are: customer is more comfortable
in the shop, transparent price, can use an ATM card, some mart is open 24 hours, promotion and
discount, customer loyalty card, etc. Because brand of the products provided by Alfamart is
limited, customers sometimes find difficulty in finding specific brand in the store.
The growth of modern retail has threatened the traditional retail to growth. Alfamart offers
opportunity for traditional retail to join by converting its store to modern retail. This condition
made the competition among other modern retails more virulent. Other modern retails are
hypermarket and supermarket. Hypermarket as the Modern Market gain the biggest revenue
since it offers more variety choice of products compare to supermarket and minimarket. While
the price offered by hypermarket relatively the same, even some goods can be cheaper compare
to supermarket and minimarket. According to Pandin (2009) biggest market share owned by

hypermarket has occurred since 2005. Supermarket is now become an unfavorable modern retail
format, due to its continuously decreasing gross margin and hard to compete with minimarket.
Minimarkets like Alfamart continuously increase its store by franchise system.
In Article 3 of Presidential Decree 112/2007, mentioned that the building area for minimarket is
less than 400m2. Modern Store Locations establishment compulsory refers to the Spatial
Planning District/Municipality and Detailed Spatial Plan Regency/City. Provisions that call for
attention to the distance set for modern stores Hypermarkets categories only, while setting the
location for the minimarket is not mentioned. Minimarket location settings in Article 5 (4) of
Presidential Decree 112/2007 states that the minimarket may be located on any road system,
including road network system environment on a regional environmental services (housing)
within cities/urban areas. That is, minimarket can open the outlet in the residential areas.
In DKI Jakarta region is arranged in Jakarta Governor Decree No. 44 of 2004 regarding
Implementation Guidelines for private sector marketing in the Province of Jakarta Special
Capital Region ("Kepgub 44/2004"), which is the implementing regulations of Jakarta Regional
Regulation No. 2 of 2002 on private sector marketing ("DKI Regulation 2/2002"). Under Article
8 Kepgub 44/2004 jo. Article 10 letter a Regulation of DKI 2/2002, mini supermarkets
(minimarket) with a floor space of 100 m2 to 200m2 must be within a radius of 0.5 km of the
market environment and located on the side of the road environment / collector / arterial.
CONCLUSION AND RECOMMENDATION
Alfamart give positive and impact for customers, traditional retailers and other modern retailers
simultaneously. Positive impacts for customers are the variety choice of shopping center and
convenience to shop, but the negative impact is customers become impulsive. The negative
impacts to traditional retailers are losing its market share but Alfamart offers opportunity for
traditional retail to join by converting its store to modern retail. Competitions among the modern
retailers give advantage for customers due to promotion and cheaper price. The government
should set clearer rules about the maximum store for modern retail in each area so that the
traditional retail can survive.

REFERENCES
Alfamart Annual Report 2014
Alfamat-menitikberatkan pada kualitas pelayanan
http://swa.co.id/business-strategy/management/alfamart-menitikberatkan-pada-kualitaspelayanan
Maria Magdalena Minarsih. Pedagang Kecil Warung Dalam Gempuran Ritel Modern
Litbangda Kabupaten Lamongan. Penelitian Pendirian Pasar Modern (Swalayan) Terhadap
Keberadaan Pasar Tradisional Di Kabupaten Lamongan
Kerja sama waralaba Alfamart
http://waralaba.alfamartku.com/post/read/id/103/item/121
Ketentuan tentang jarak minimarket dari pasar tradisional
http://www.hukumonline.com/klinik/detail/lt4fceff7b57828/ketentuan-tentang-jarakminimarket-dari-pasar-tradisional