<![CDATA[The expansion of modern retail in Indonesia's major cities is often assumed to weaken the existence of traditional retail. However, the Madura warung phenomenon shows the opposite pattern: these ethnicity-based informal retail businesses not only survive, but in many cases benefit from the proximity of the location to modern retail. This multi-site case study qualitative research explores the mechanism of co-existence in five locations with different characteristics in Surabaya, fishing areas (Kenjeran), religious tourism (Ampel), main roads/stations (Jl. Kusuma Bangsa), campus/boarding houses (Gubeng), and market/terminal areas (Wonokromo), with the conceptual framework of sharia maqashid, especially Hifz Al-Mal, combined with the concept of retail cohabitation and ethnic entrepreneurship. Data was collected from 16 informants (five stall owners, five consumers, five modern retail employees or managers, and one Madura community leader) through semi-structured interviews, as well as multi-time field observations. The findings show that co-existence is shaped by product differentiation and operational time, the flexibility of trust-based transactions, the social capital of ethnic networks institutionalized through associations, and the values of Islamic business ethics that are inherited across generations. Cross-location analysis also revealed important variations: the advantages of 24-hour operation hours of warungs are not always significant in locations with modern retail that are also open for a long time (Jl. Kusuma Bangsa), and the character of the area (demographics, surrounding economic activities) has proven to be a much stronger determinant of co-existence patterns than mere spatial proximity. This study contributes to expanding the concept of cohabitation by including the institutional dimensions of social capital, ethnicity, and Islamic business ethics as additional mechanisms that explain people's economic resilience.]]>
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