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ublicly listed lifestyle retailer PT Mitra Adiperkasa (MAP) foresees slower revenue growth this year as unfavorable domestic economic conditions may derail the retail giant from achieving its initial target.

'€œWe expect to grow between 13 and 15 percent this year as we predict that the sales target can'€™t be the same as that of last year,'€ said MAP corporate secretary Fetty Kwartati.

MAP has previously aimed to book around 10 to 20 percent in revenue growth this year, compared to 21.4 percent growth last year.

Domestic economic slowdown, as seen in the past few quarters, had squeezed the net profits of most retailers in the country, she told reporters after a public expose event on Monday. Indonesia'€™s gross domestic product (GDP) grew 4.7 percent in the first quarter this year, the slowest pace in six years.

MAP, which runs businesses ranging from fashion to food and holds franchises for Zara and Starbucks, saw its revenues grow by 11 percent year-on-year (yoy) to Rp 2.97 trillion (US$225.3 million) in the first quarter of this year.

Its net income for the period plunged by 78.2 percent to Rp 10.29 billion in the January-March period of this year from a year earlier, according to its financial report.

The firm'€™s vice president, VP Sharma, said that foreign exchange losses, surging operational costs, rising loan interest rates and inventory systems had become the factors that contributed to the net profit slump.

MAP will issue Rp 1.5 trillion bonds to Asia Sportswear Holdings, a unit of private equity firm London-based CVC Capital Partners, within this week to repay debts '€” which will save around Rp 150 billion per year in loan interest rates, according to Sharma.

MAP'€™s total bank loans stood at Rp 1.28 trillion last year, including those of subsidiary PT MAP Aktif Adiperkasa (MAA), with interest rates ranging from 10 to 12.25 percent per annum for rupiah-denominated loans, its financial report showed.

The firm'€™s total liabilities hit Rp 6.08 trillion and its assets stood at Rp 8.69 trillion as of December last year.

The brand-holder of Massimo Dutti, Nautica and Bershka in the country hopes that MAA '€” which focuses on an '€œactive'€ business unit comprising sports, gold, kids and lifestyle '€” will go public in the next four to five years, with a possibility of Montage Technology Group Ltd. (MCL), another unit of CVC, owning a 30 percent stake in MAA.

In another development, MAP would also allocate lower capital expenditure this year of Rp 500 billion, from Rp 700 billion last year, Fetty said.

The firm plans to add 50,000 square meters of area to open between 40 and 45 new Starbucks outlets and a number of department stores, such as Sogo and Zara.

But it will further reduce ownership in Burger King because the franchise, along with Domino'€™s Pizza, has shown poor performance in recent years.