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Jakarta Post

Healthier lifestyle boosts retail sales

As more and more people adopt a healthier lifestyle, sportswear sales have soared after the retail industry suffered weak growth last year

Riza Roidila Mufti (The Jakarta Post)
Jakarta
Sat, September 1, 2018

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Healthier lifestyle boosts retail sales

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s more and more people adopt a healthier lifestyle, sportswear sales have soared after the retail industry suffered weak growth last year.

For example, 25-year-old South Jakarta resident Stephanie purchased a pair of Nike shoes from multibrand sportswear store Sports Station last week along with leggings and tops to wear for her daily exercise sessions at the gym.

Stephanie, who exercises at least five times a week, said she purchased sportswear — especially pants and tops — quite often at multibrand sportswear stores.

“I love buying sportswear at stores like Sports Station because it sells various brands so I can compare one model to another while comparing the prices too,” she added.

Meanwhile, for Dita Darwin, a 27-year-old digital marketing strategist working in Jakarta, sports shoes are worn daily, not just for working out.

“I wear sports shoes for my daily needs including the commute to my office. Since I travel by commuter train and [Transjakarta] busway, wearing sports shoes is much more comfortable than heels,” Dita said, adding that she wore heels only on certain occasions like business presentations and meetings.

Currently, she has seven pairs of sports shoes for different occasions, from exercising to daily commuting, including one she bought two weeks ago at a Sports Station outlet.

Sportswear and lifestyle retailer PT Map Aktif Adiperkasa, which operates multibrand chains such as Sports Station, Footgear and The Athlete’s Foot, said Indonesia’s younger generation was now more aware of
the benefits of having a healthier lifestyle.

This was one factor that had helped boost its sales, according to the company’s corporate secretary, Ratih Darmawan Gianda.

“We believe sports and lifestyle aspirations among young Indonesians are increasing, and we are confident the Asian Games in Jakarta and Palembang will only continue to inspire and motivate young people to adopt a healthier lifestyle,” she said in a statement.

MAP Active, a subsidiary of lifestyle retail giant Mitra Adiperkasa, booked net revenue of
Rp 2.9 trillion (US$195.39 million), up 23 percent from Rp 2.4 trillion posted in the first half of 2017.

Overall, its net profit rose 43 percent during the first quarter of the year to Rp 278 billion from the Rp 195 billion it had recorded in the same period last year.

The retail industry saw sluggish demand last year.

Several department stores in Jakarta closed their doors permanently at the end of last year, including Lotus and Debenhams, which were both overseen by MAP Active’s parent company, Mitra Adiperkasa, due to declining retail sales.

Contacted by The Jakarta Post, Ratih said in addition to the younger generation’s healthier lifestyle, the company’s expansion measures have also shown positive results, thus boosting the company’s performance.

“Basically, sales at multibrand stores such as Planet Sports, Sports Station and The Athletes Foot, as well as sales at single brand stores such as Skechers and Converse have experienced a double-digit increase,” added Ratih on Friday.

“We have also added new stores and expanded some stores’ space […] so our inventory [has also expanded compared to] last year.”

The new stores and significant improvements in Mitra Adiperkasa’s inventory profile have subsequently helped sales growth in the first half of the year, Ratih said.

Recently, it also acquired the Lego toy brick brand and Clarks shoes.

It listed its shares on the Indonesian Stock Exchange in July.

As of June this year, Mitra Adiperkasa operates 991 stores in 71 cities throughout Indonesia and manages over 150 brands.

Its shares closed at Rp 4,670 on Friday, down 1.89 percent from the previous close of Rp 4,760.

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