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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.[5]
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 travel to Singapore just to purchase western imported food and beverages. He saw an opportunity to import the goods directly to Indonesia.[6] 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.[6]
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.[6] Most Indonesians purchased their groceries in the wet markets, while supermarkets were considered prestigious and restricted to the upper class.[6]
The company went public in 1989[6] 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%.[7]
In 1990, Hero started its Guardian Pharmacy operation and the mini-market "Starmart" the following year.[8] In 1992, the founder MS Kurnia passed away. His son Ipung Kurnia took control of the business[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 was purchased by Mulgrave.[7] 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.[7] 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[10][11]), under which the stores would operate as FamilyMart with new ownership.[12][10]
The rapid growth of convenience stores and e-commerce in Indonesia shifted consumer behavior to online shopping.[13] This shift resulted in the company downsizing its Giant outlets starting 2019.[14][15] 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.[15]
The company decided to close the Giant brand effective 31 July 2021.[16] It blamed the COVID-19 pandemic and changes in consumer behavior.[15]
2021-Present: Focus on Hero, Guardian, and IKEA. Reacquiring the "Hero" brand
With the closure of Giant brands, the company will focus on the operations of Hero, Guardian, and IKEA.[16] The opportunities for Hero Supermarket in the upper-class supermarket segment appear promising and less fragile.[15] The company believes the new brand portfolio focus, mainly Guardian and IKEA, offers sufficient diversity and will serve markets outside the upper-class segment.[15]
The company converted the previous Giant stores to IKEAs or Hero Supermarkets.[17]
PT Hero Supermarket Tbk 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.[18][19][20]
^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.
