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)