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Matahari to open 10 new stores this year as sales recover
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An employee of Matahari Department Stores shows discounted products at PSx Mall in Palembang, South Sumatra, on Sept. 29, 2015. (tribunnews.com/Rahmaliyah)
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ublicly listed retailer PT Matahari Department Store has announced plans to open at least 10 new stores this year following a recovery in sales helped by eased mobility restrictions.
Matahari said the plan was a part of its mid-term expansion with the aim of opening between 12 and 15 new stores annually until 2026. The company opened three new stores last year.
“The Omicron peak in Jakarta is behind us, and the nationally improving picture sets up an uninterrupted and full Lebaran trading opportunity,” Terry O’Connor, vice president director and CEO at Matahari, said in a statement on March 2.
“With mall traffic rebounding after this Omicron wave, and travel and related clothing as well as formal/occasion wear gaining relevance, the fashion retail resurgence experienced in the US, Europe and elsewhere is still expected in 2022,” he added.
Read also: Retail sales see solid start in 2022
The daily toll of new COVID-19 cases in Indonesia has come down since peaking at around 64,000 in mid-February, with 24,867 new cases reported Sunday.
Jakarta and other major cities are under level-three mobility restrictions. While just one step below the most stringent measures, this amounts to much-eased provisions.
Matahari noted the government’s decision not to impose level-three rules during the upcoming festive period of Ramadan.
In 2021, Matahari booked a net profit of Rp 879 billion, reversing a net loss of Rp 828 billion reported a year prior. The company’s net revenue grew 15 percent to Rp 5.5 trillion last year.
Matahari said these improvements were supported by a good performance in the fourth quarter of 2021, thanks to the eased restrictions, an improving economy and company-driven initiatives.
“We are upping the 2022 EBITDA [target] from the earlier guidance of Rp 1.8 trillion to Rp 2 trillion,” O’Connor said. According to the company statements, last year’s EBITDA was Rp 1.3 trillion.
Read also: Retailer Matahari temporarily closes all stores, cuts salaries amid COVID-19 pandemic
Matahari also said it had taken measures to mitigate global supply chain disruption by organizing imports early and leveraging supplies from local industries.
Matahari shares, traded on the Indonesia Stock Exchange (IDX) under the ticker code LPPF, dropped on Monday to change hands at Rp 5,350 at the end of the early trading session but are up almost 30 percent so far this year.
