Starting from the end of October 2017, Indonesian retail company Mitra Adiperkasa will close all of its Lotus Department Store outlets as the department store chain fails to contribute positively to the corporate earnings of the listed company. Mitra Adiperkasa is currently restructuring its department store business segment in an effort to reduce the company's operational costs.
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23 February 2021 (closed)
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Today's Headlines Department Stores
Indonesia's largest department store chain Matahari Department Store has seen its shares plunge 32.2 percent to IDR 10,775 a share since its recent peak of IDR 15,900 a piece on 22 May 2017. Although its shares rebounded 2.13 percent on Wednesday (23/08) they remain around the lowest level since early 2014. What is behind this decline?
Indonesia Investments updated the company profile of Mitra Adiperkasa (MAPI). The company is an Indonesian retail company with a diversified portfolio which includes department stores, fashion, sports equipment, food & beverages, supermarkets as well as lifestyle products. Mitra Adiperkasa has 1792 retail outlets, that contain more than 150 brands, in 58 cities across Indonesia. The company is franchise holder of various and numerous well-known global brands such as Starbucks, Zara and Nine West.
Latest Columns Department Stores
Amid changing shopping habits of the Indonesian consumer, department store Ramayana Lestari Sentosa continues to transform its business and to adjust it to the modern retail reality. In August 2017 Ramayana Lestari Sentosa announced to close eight stores (in Surabaya, Banjarmasin, Bulukumba, Bogor, Pontianak and Sabang), hence triggering concerns that the company is in financial trouble.
After the closing of several Ramayana Department Stores and Matahari Department Stores, as well as the (planned) closing of all remaining Lotus Department Stores (per 26 October 2017) in Indonesia, Indonesia's conventional department store industry needs to come up with a new strategy or shopping concept to survive amid increasingly fierce competition from domestic and global e-commerce platforms.
Lulu Hypermarket, the Abu Dhabi-based hypermarket chain and retail venture that was started by Lulu Group International in 2000, opened its second hypermarket store in Indonesia, and its 137th store worldwide. The new outlet in Indonesia was opened in Serpong (Tangerang, Banten). Previously, the group had already opened a hypermarket in Cakung (East Jakarta) in 2016.
Ramayana Lestari Sentosa, one of Indonesia's biggest department stores, is expected to see improving corporate earnings in the years ahead. In the first nine months of 2016 the company's sales reached IDR 6.4 trillion (approx. USD $492 million), or about 77 percent of the full-year sales target that was set by Danareksa Sekuritas (IDR 8.07 trillion). This strong performance is primarily supported by same-store sales growth in Jakarta (+8.7 percent y/y), Java (+7.3 percent), and outside Java (+4.1 percent).
Matahari Department Store is a leading modern retail business in Indonesia offering a wide variety of products such as accessories, home-ware and fashion. In 2016 the company, which has been listed on the Indonesia Stock Exchange since 1989, plans to open between six and eight new stores as part of its expansion plans. This is a more conservative plan compared to 2015 when Matahari Department Store opened 11 new stores. However, the lower amount of new stores may in fact manage to enhance productivity at the existing stores and curtail operational costs.
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