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Retail Spaces MallsMatahari Department StoreMatahari Department Store at Java Supermall is a full-line department store, offering a good selection ofproducts in the core cosmetics, apparel and homewares categories.Matahari at Java Supermall is one of four Matahari Department Stores in Semarang. The subject site isfacing strong competition from other and department store operators at nearby centres such as MalCiputra (Robinsons) and local operators such as Sriratu.The subject store targets the middle to middle-upper income segment, while competing department storesin the region are primarily targeting the middle or low to middle income segments.Figure 5.1.2 Java supermall, Matahari department storeSource: Jones Lang LaSalle and ConsultingFuture revenue growth is expected to be supported by renovation to the store which are planned to beconducted in mid 2007. While there may be a short-term disruption to sales, it is expected that therenovation will bring the subject site up to the latest Matahari fitout standards and will cement thedepartment store as the most professionally presented in Semarang.Matahari SupermarketThe Matahari Supermarket is a single level supermarket. It is likely to face more intense competition asCarrefour is expected to enter the local market by late 2007.Figure 5.1.3 Java supermall, Matahari supermarketSource: Jones Lang LaSalle Research and Consulting5.1.3 Trade area analysisBased on discussions with the store managers of Matahari Department Store and Matahari Supermarket,the trade area for Java Supermall is considered to approximate the extent of the Semarang municipality.In terms of competition, Java Supermall competes with the major malls in Semarang, in particular PlazaSimpang Lima and Mal Ciputra (which are interconnected via a pedestrian bridge in the centre of town).Overall, Mal Ciputra is considered to be pitched to a slightly higher income segment than Java Supermalland Plaza Simpang Lima is considered to be targeting a lower income segment. However, as noted earlier,both centres’ anchor department stores are considered to be targeting a lower income segment thanMatahari at Java Supermall.F-108