Matahari to open retail store in China<\/p>\n
Dow Jones, Jakarta<\/p>\n
Indonesia's PT Matahari Putra Prima plans to enter the Chinese
\nmarket with the launch of a department store in the city of
\nShenzhen in southern Guangdong province in August, a senior
\nexecutive said on Friday.<\/p>\n
The planned 10,000 square meter outlet will mark the first
\noverseas location for an Indonesian retailer, Matahari's Chief
\nFinancial Officer Hendra Sidin told reporters.<\/p>\n
\"We are open to the possibility of opening stores in other
\ncountries if it's feasible,\" Hendra said, without elaborating.<\/p>\n
Matahari will join the growing list of foreign retailers
\nseeking to tap surging consumption levels in China powered by
\neconomic growth of 9.5 percent in 2004. China recorded a 12.2
\npercent on-year rise in retail sales to 466.3 billion yuan in
\nApril, a slight deceleration from the 13.9 percent on-year growth
\nin March.<\/p>\n
China's retail market is attracting greater foreign retailer
\ninterest since the government scrapped restrictions in December
\nthat limited foreign retailers to joint ventures in a restricted
\nnumber of cities nationwide. The new rules, part of the
\ncommitments that helped pave the way for China to join the World
\nTrade Organization in December 2001, permit foreign retailers to
\nopen wholly-owned stores anywhere in China.<\/p>\n
Foreign retailers that have already entered the Chinese market
\ninclude U.K. supermarket company Tesco and France's Carrefour
\nS.A.<\/p>\n
Matahari's new Chinese operation is part of a Rp 400 billion
\n(US$42.35 million) to Rp 500 billion expansion strategy that
\nincludes the planned opening of 11 new department stores and 10
\nhypermarkets in Indonesia in 2005, Hendra said.<\/p>\n
He added that the company's sales are likely to rise 25
\npercent to 30 percent this year from Rp 5.62 trillion in 2004.
\nMatahari had net profit of Rp 125.34 billion in 2004.<\/p>\n
Matahari began as a a small children's clothing store in
\nJakarta's Chinatown in 1958 and now operates 79 department stores
\nand 54 supermarkets, including four hypermarkets, across
\nIndonesia.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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