MAP plans Rp 180b for expansion binge<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
High-end retailer PT Mitra Adiperkasa Tbk (MAP) -- known for its
\nSOGO and Debenhams retail stores, Starbucks cafes and Kinokuniya
\nbookstores -- said on Friday that it would allocate Rp 180
\nbillion (US$17.6 million) for capital expenditure over the
\nremaining year.<\/p>\n
The publicly listed firm's chief executive officer Virendra
\nPrakash Sharma said the allocation would be used to establish
\nmore stores as well as acquiring more internationally famous
\nbrands.<\/p>\n
\"All the allocated funds will be fully generated from our
\ninternal cash flows. Next year's capital expenditure will be
\naround that amount. The allocation is due to increasing number of
\nnew shopping centers,\" he said during the company's first half
\nperformance report.<\/p>\n
MAP has projected to add some 100,000-square-meters of space
\nfor retail stores until the year end, he added.<\/p>\n
In its first semester report, ending on June 30, the company's
\ntotal retail area stood at 207,971 sqm with the number of stores
\nso far reaching 469. Some 21 stores were established in the
\nyear's first six months.<\/p>\n
MAP's group head of investor relations Ratih D. Gianda said
\nthat to support the company's expansion plan, some 40 stores
\nwould be added in the second half of the year.<\/p>\n
\"The total number of stores will then stand at 509,\" she said.<\/p>\n
As the 10-year-old company is known for holding worldwide
\nknown brands, more would soon join its list.<\/p>\n
\"We will convince people that they can only buy international
\nbranded goods at our shops,\" Sharma said.<\/p>\n
In the first semester, the company acquired, among others,
\nCalvin Klein Jeans, Mexx and Diadora.<\/p>\n
Sharma said the capital expenditure would support MAP's
\nstrategy in this year's second half and next year to attract more
\nmiddle- and high-class consumers.<\/p>\n
\"According to ACNielsen research, there are at least 45
\nmillion Indonesians categorized in A and B classes. We are trying
\nto get them to be our consumers,\" he said, adding that at present
\nonly half of them were shopping in his stores.<\/p>\n
Speaking on MAP's performance, Sharma said the company
\nrecorded 25 percent growth in net income to Rp 43.4 billion in
\nthe first semester from Rp 34.6 billion in the corresponding
\nperiod last year.<\/p>\n
He said revenue growth was still dominated by the growth in
\ndepartment stores, while geographically, the firm's retailing in
\nJakarta contributed 71 percent to revenue growth.<\/p>\n
The firm's net sales jumped by 30 percent to Rp 1.3 trillion
\nfrom Rp 997 billion in the same period last year.<\/p>\n
Satisfied with the company's first half performance, Sharma
\nsaid the company would see a total growth of between 30 percent
\nand 40 percent by the end of this year.<\/p>\n
\"The second half is much more important for retail business.
\nGrowth in the second half is expected to be higher than the first
\nhalf. We have received sales figures for July and August that
\nshow that sales have gone up over 20 percent. That's why we are
\nconfident of meeting the target,\" he said. (006)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/map-plans-rp-180b-for-expansion-binge-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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