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PT Hero Retail Nusantara

Formerly	PT Hero Mini Supermarket (1971–1991)
Company type	Private
Industry	Retail
Founded	5 October 1971; 53 years ago (1971-10-05)
Founders	Muhammad Saleh Kurnia Nurhayati
Headquarters	Graha Hero, Bintaro Jaya Sector 7, South Tangerang, Indonesia
Number of locations	341 stores (2022)
Key people	Ipung Kurnia
Brands	Hero Supermarket Mitra Diskon Swalayan
Owners	DFI Retail Group (1998–2024) Hero Intiputra (since 2024)
Number of employees	4,481 (2023)

PT Hero Retail Nusantara, commonly known as Hero, is one of Indonesia's largest supermarket operators. It is owned by Hero Intiputra and affiliated with DFI Nusantara, formerly known as Hero Group.

Focusing on middle-income segment customers, the company's first store opened in 1971. As of 2022, the company operates 341 stores throughout the country. It has a sister brand called Mitra Diskon Swalayan, which is the re-incarnation of Giant hypermarket that previously operated in Indonesia.

History

Establishment

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.

In the 1960's, Kurnia realized that many Indonesians and expatriates often travel to Singapore just to purchase western imported food and beverages. He saw an opportunity to import the goods directly to Indonesia. After receiving advice from his Canadian friend Charles Turton, Kurnia and his wife (Nurhayati) traveled to Singapore to learn how Singaporean stores were configured. Then in 1971, the couple opened the first Hero store in Kebayoran Baru, Jakarta.

Further developments

During Indonesia's New Order period, Hero and its competitor Gelael stores were the only major supermarkets in Jakarta, with Hero operating 9 stores in Jakarta alone. Most Indonesians purchased their groceries in the wet markets, while supermarkets were considered prestigious and restricted to the upper class.

The company went public in 1989 where the founders retaining 50.1% ownership. The remaining shares were held by MPPA Retail Group (part of Lippo Group) with 10.42%, Mulgrave (DFI Retail Group) with 7.63%, SSV Netherland BV with 10.20%, and retail public investors with 21.65%.

In 1990, Hero started its Guardian Pharmacy operation and the mini-market "Starmart" the following year. In 1992, the founder MS Kurnia passed away. His son Ipung Kurnia took control of the business In 2002, the group started its Giant hypermarket operation.

Acquisition by DFI

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

In 2014, Hero acquired a license to operate IKEA stores in Indonesia. In 2016, the company sold its mini-market "Starmart" operation to PT Fajar Mitra Indah (part of Wings Group), under which the stores would operate as FamilyMart with new ownership.

Decline of Giant

The rapid growth of convenience stores and e-commerce in Indonesia shifted consumer behavior to online shopping. This shift resulted in the company downsizing its Giant outlets starting 2019. In 2021, CEO Patrik Lindvall said that management has closely seen the trends of the global hypermarket industry, with Walmart, Carrefour, and Tesco moving away from the industry. Consumers preferred to shop in smaller nearby stores.

The company decided to close the Giant brand effective 31 July 2021. It blamed the COVID-19 pandemic and changes in consumer behavior.

Recent times and spin-off

With the closure of Giant brands, the company will focus on the operations of Hero, Guardian, and IKEA. The opportunities for Hero Supermarket in the upper-class supermarket segment appear promising and less fragile. The company believes the new brand portfolio focus, mainly Guardian and IKEA, offers sufficient diversity and will serve markets outside the upper-class segment.

The company converted the previous Giant stores to IKEAs or Hero Supermarkets.

PT Hero Supermarket Tbk (now DFI Nusantara) planned to divest its supermarket businesses along with the rights of the "Hero" brand on 19 April 2024 to the Kurnia family's new company PT Hero Retail Nusantara for 135 billion rupiahs.

Brands

Current

• Hero (1971–present), the flagship supermarket
• Mitra Diskon Swalayan (2024–present), operated as the re-incarnation of Giant

Former

• Guardian (1990–2024), a pharmacy and health & beauty stores, handled by DFI Nusantara
• IKEA (2014–2024), exclusive license to operate in Indonesian market, handled by DFI Nusantara
• Starmart (1991–2016)

Slogan history

• 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. Desan, Jayanthi (17 December 2015). "CR Talk - Looking back and ahead". The Sun Daily. Retrieved 25 December 2015.
2. "Hero to open more stores". The Jakarta Post. 19 June 2015. Retrieved 25 December 2015.
3. Burhan, Fahmi Ahmad (4 December 2024). "HERO Resmi Ganti Nama Jadi DFI Retail Nusantara, Fokus Garap Guardian & IKEA". Bisnis.com. Retrieved 1 January 2025.
4. "2022: Annual Report & Sustainability Report" (PDF). PT Hero Supermarket Tbk. 2022. p. 8.
5. ^ Ahsan, Ivan Aulia (15 January 2019). "Sejarah Supermarket Hero: Agar Bule Tak Perlu Belanja ke Singapura". tirto.id (in Indonesian). Retrieved 2024-01-15.
6. ^ "Pendiri Hero Lepas 24,54% Saham ke Dairy Farm Rp 255,268 Miliar". detikfinance (in Indonesian). detikcom. Retrieved 2024-01-15.
7. "Hero - Sejarah Perusahaan". www.hero.co.id. Retrieved 2024-01-15.
8. ^ saleh, tahir (2019-01-14). "Kisah HERO: Dari Kebayoran, Lippo, hingga Dicaplok Jardine". CNBC Indonesia (in Indonesian). Retrieved 2024-01-15.
9. ^ Sumartomdjon, Markus (2016-02-24). Sumartomjon, Markus (ed.). "Hero lepas Starmart ke Family Mart". kontan.co.id (in Indonesian). Grahanusa Mediatama. Retrieved 2024-01-15.
10. Suryanto, Venny (2022-01-11). Husaini, Azis (ed.). "Anak Usaha Wings Group, Family Mart Ekspansi Gerai Kopi Pakai Robot". PT. Kontan Grahanusa Mediatama (in Indonesian). Retrieved 2024-01-15.
11. "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.
12. "Navigating the shifts in consumer behavior in Indonesia". NIQ. 2023-05-22. Retrieved 2024-01-15.
13. Sandi, Ferry (2021-12-27). "2021 Banyak Ritel Bertumbangan: Giant Tutup Selamanya di RI!". CNBC Indonesia (in Indonesian). Retrieved 2024-01-15.
14. ^ "CEO HERO Patrik Lindvall : Ini Adalah Jalan Terbaik". Bisnis Indonesia (in Indonesian). Retrieved 2024-01-15.
15. ^ 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.
16. Sandi, Ferry. "2021 Banyak Ritel Bertumbangan: Giant Tutup Selamanya di RI!". CNBC Indonesia (in Indonesian). Retrieved 2024-01-15.
17. HERO Alihkan Bisnis Makanan, Fokus ke IKEA dan Guardian
18. Hero (HERO) Lego Bisnis Ritel Supermarket Rp183M, Ini Alasannya
19. Hero Supermarket Akan Ganti Nama, Fokus Investasi ke Guardian dan IKEA

• 1971 establishments in Indonesia
• Indonesian companies established in 1971
• Supermarkets of Indonesia
• Companies based in Tangerang
• Department stores of Indonesia
• Retail companies established in 1971
• Corporate spin-offs