Lippo acquires and merges DialMart into its retail chain

Lippo acquires and merges DialMart into its retail chain

JAKARTA (JP): Executives of grocery delivery service company
for Greater Jakarta area, DialMart, confirmed on Friday that the
Lippo group had acquired and merged the service company into the
group's retail chain.

"The acquisition process is ongoing. I'll tell you officially
next week," DialMart's marketing and service director Mia
Lukmanto told The Jakarta Post by phone.

"All I can say is (the acquisition) will not affect our
service to our customers, instead our members will obtain more
benefits," Mia said, but declined to elaborate.

An executive at the Lippo group, who requested anonymity, also
confirmed the acquisition, saying that it was being conducted
under the company's Lippo-e-net and that DialMart would be called
"Lipposhop".

In early 1997, Lippo Group's PT Multipolar Corporation
purchased 51 percent of retailer Matahari's shares, becoming the
majority shareholder, with a total ownership of over 60 percent.
Matahari currently operates 74 stores nationwide.

Mia said DialMart, which was launched in August 1998, now has
about 75,000 members.

"Sixty percent of that figure are active members, who shop
with us, spending an average of Rp 450,000 a month per customer,"
Mia said, adding that the company makes a total sales of some Rp
20.25 billion (US$2.3 million) a month.

In April this year, Mia said the company only had some 6,500
members with a total sales of Rp 2 billion per month.

The firm had carried out a series of promotional activities
through newspapers, radios and street banners.

DialMart offers more than 3,000 items for sale, which can be
ordered via phone, facsimile or the internet, with free delivery
to customers living in the Greater Jakarta area for purchases
worth at least Rp 200,000 per order.

The products are mostly household needs such as kitchen items;
canned foods and drinks; and toiletries.

DialMart's chief operating officer Tatat Setyawan Dharmawan,
said the company offered "a same-day delivery" if customers
ordered before 11 a.m.

Currently, five percent of their members order their groceries
via the company's website (www.dialmart.co.id) which was launched
in April, receiving orders worth between Rp 400,000 and Rp
450,000 per customer.

Tatat said the company also had customers living in Canada and
the United States who ordered via the internet for family members
residing in Greater Jakarta.

Tatat said the company had no plans to open a branch outside
the capital.

"There are more working couples in Jakarta than in any other
city (in the country) and who do not have the time to go to
shopping centers themselves," Tatat said.

"Besides, the traffic outside Jakarta is less congested so it
will not take that much time to go to shopping centers," Tatat
added. (jaw)