Makro to open four new stores this year

Makro to open four new stores this year

Leony Aurora, The Jakarta Post, Jakarta

Dutch giant wholesaler Makro plans to open four new outlets this
year and will remodel all of its existing stores to accommodate a
wider range of fresh foods.

President of PT Makro Indonesia Simon Collins said at the
opening of the remodeled fresh food area in Makro Pasar Rebo,
East Jakarta, on Tuesday that a new store, located in Palembang,
was already under construction and would open in April.

"We are still considering the locations of the other three,"
he said.

Retailers, supermarkets and hypermarkets have announced plans
to expand their networks to capitalize on rising domestic
consumption, the major driver of Indonesia's economic growth of
4.1 percent last year.

Matahari, the biggest retailer by sales, plans to open eight
hypermarkets, while French giant Carrefour intends to add four
stores to its chain this year.

Aside from building new stores, Makro -- with 13 outlets
spread across greater Jakarta and other major cities in Indonesia
-- also plans to expand its stores' fresh food areas.

This move is aimed at satisfying its hotel, restaurant and
catering customers.

Makro Pasar Rebo's fresh food area -- which serves as a pilot
project -- has been stretched by 35 percent from 815 square
meters to 1,100 square meters, while its collection has been
expanded from 1,000 articles to about 1,700 articles. The
remodeling cost the company Rp 7 billion (US$828,402).

In the following three or four months, more articles would be
added based on the requests of customers, said Simon.

Commercial director of food Kuswanto Gunadi said that hotel,
restaurant, and catering businesses required quality and
continuity. "To ensure that, we cannot depend on one supplier for
one item," he said.

"For Jakarta stores alone, we have three suppliers (for each
item)," he added.

At present, the portion of fresh foods from total sales was
slightly less than 25 percent. "(With the remodeling) fresh food
is expected to contribute more than 25 percent of the total
sales," he added, although he declined to provide a specific
target.

All existing outlets will be redesigned, although this year
the other five stores in greater Jakarta and the store in
Denpasar are priorities. New stores will be constructed using the
new design.

Simon said that sales and profits last year increased and were
also expected to increase this year. He declined to provide any
figures.

Makro launched its first store, located in Pasar Rebo, in
September 1992. It has maintained its concept as a "cash and
carry" wholesaler open only to members, which have amounted to
approximately 500,000 people.