Matahari to invest $106m for 16 new stores this year
Matahari to invest $106m for 16 new stores this year
JAKARTA (JP): PT Matahari Putra Prima, a publicly-listed
retail company, said yesterday that it will open 16 new stores
this year with a total investment of Rp 250 billion (US$106
million).
"To finance the projects we issued bonds worth $100 million
through the Luxembourg Stock Exchange in March," a company
director, Antonius Hanifah Komala, said after an annual company
shareholders meeting yesterday.
Hanifah said the planned stores -- 10 Matahari stores, four
Mega M stores and two Gallerias -- will be built in Bogor and
Depok in West Java, Pluit in West Jakarta, Jambi, Batam in Riau,
Surabaya in East Java and Bandung in West Java.
Matahari operates Matahari and Galleria department stores,
which offer apparel and fashion products for middle- to upper-
income shoppers, Mega M department stores, which focus on food,
hard goods and clothes, and Super Ekonomi shops which offer food
for low-income customers.
Mega M and Super Ekonomi are the new formats launched by the
company last year and currently under evaluation.
Hanifah said that in 1995 the company opened 12 new Matahari
stores, two Galleria stores, two Mega M stores, and four Super
Ekonomi stores, with a combined retail space of 193,000 square
meters.
"As of the end of last year, we operated 70 stores in 29
cities with total retail space of 512,100 square meters," Hanifah
said.
The 12 new stores opened last year, according Hanifah, booked
Rp 225 billion in total sales last year.
Hanifah said that Matahari has become the biggest retail
company in Indonesia.
He said that of the company's net sales of Rp 1.4 trillion
last year, 87 percent came from Matahari stores, 7 percent from
Galleria, 3 percent from Mega M and another 3 percent from Super
Ekonomi.
Super Ekonomi, which is now operating in five locations, has
yet to turn a profit.
As for the company's financial performance, Hanifah said that
the management expects an increase of about 42 percent in sale
revenues to Rp 2 trillion this year.
"In line with the projected sales increase, we expect to book
Rp 51 billion in net profits this year, compared to Rp 38.6
billion last year," he said. "We booked Rp 21 billion in the
first quarter of this year."
Hanifah also said that yesterday the company's shareholders
approved proposed dividends of Rp 50 per share, totaling Rp 11
billion, or 29 percent of 1995's net profits. (alo)