Ramayana plans to open eight new stores this year

JAKARTA (JP): The owner and operator of Ramayana department stores, PT Ramayana Lestari Sentosa, plans to open eight new retail outlets this year as part of its expansion program.

Company public relations director Setyadi Surya said yesterday the publicly listed retail chain would invest around Rp 80 billion (US$32.78 million) in the new outlets.

"The new stores will be in addition to the 55 retail stores we operate now in Java, Bali and Batam," Setyadi said after the company's annual shareholders meeting.

Six of the new stores will be in Jakarta, and the remaining two in Sukabumi, West Java, and Bali.

He said the company also planned to expand two of its existing stores.

The new stores are expected to increase the company's sales to Rp 1.12 trillion this year from Rp 856.6 billion last year, and its net profit to Rp 105 billion from Rp 82.4 billion.

" Ramayana's net sales already reached Rp 347.6 billion in the first quarter of this year, compared to Rp 280.4 billion in the same period of last year, Setyadi said.

It booked a net profit of Rp 39.9 billion in the Jan-March period, compared to Rp 25 billion in the same period last year, he said.

Last year the company's net sales rose by 37.3 percent to Rp 856.6 billion from Rp 630.6 billion in 1995. Its net profit rose by 90.8 percent to Rp 82.4 billion last year from Rp 43.2 billion.

The net earnings per share was Rp 270 last year, up from Rp 201 in 1995.

Setyadi said 12.3 percent of the increase in sales came from the sales of the company's existing stores, and the remaining 87.7 percent came from the opening of 10 new stores last year.

"We are optimistic that we will be able to reach the target, although the competition in retail business is getting tighter," Setyadi said.

He said the new stores would be located in areas with fast- growing populations such as industrial areas, new residential areas, and areas close to bus terminals, to cater to middle to low economic sectors, its main target market.

"We are also gradually increasing the prices of some of our goods, by selling consignment items that would cost slightly more in order to attract our old customers whose earnings have increased since they first became our customers," he said.

The company expects to open eight to 10 stores a year in the next two years.

PT Ramayana, established in 1978, sold 80 million, or 28.57 percent, of its shares to the public last year.

Setyadi said the company raised Rp 245.5 billion from the initial public offering, which was used to open new stores and pay the company's debts. (das)