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 saw an opportunity where he could import the goods into Indonesia.[6] After an advice from a Canadian friend Charles Turton, Kurnia and his wife (Nurhayati), went to Singapore, to imitate the way Singaporean stores were set up. 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 its competitor Gelael stores, are the only major supermarkets in Jakarta, with Hero having 9 stores in Jakarta alone.[6] Most Indonesians purchased their groceries in the wet markets, while supermarkets are considered prestigious for the upper class.[6]
1989-2010: Initial Public Offering and Expansions
The company 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 was purchased by Mulgrave.[7] In 2010, 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 ways 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: Closure of "Giant" hypermarket stores
The rapid growth of convenience stores and e-commerce in Indonesia shifted the consumer behaviors 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 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 close the Giant brand effective in 31 July 2021.[16] It cited the reason not only due to the COVID-19 pandemic, but also the 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 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 company believes that the new brand portfolio focus, mainly Guardian and IKEA, is diverse and will not only serve the upper-class segment.[15]
The company converted the previous Giant stores to IKEA or Hero Supermarket.[17]
On 19 April 2024, PT Hero Supermarket Tbk would be divesting its supermarket businesses along with the rights of the "Hero" brand to Kurnia's family new company named PT Hero Retail Nusantara for 135 billion rupiahs.[18][19][20]