Ramayana to open 10 to 12 new outlets

JAKARTA (JP): The country's second largest retailer, PT Ramayana Lestari Sentosa, announced on Friday that it would open 10 to 12 new outlets in the remaining period of this year in a bid to help boost sales.

"Half of the outlets will be opened outside Java," Ramayana finance director Setijoso Kusuma said.

The company's net sales for this year are expected to reach Rp 2.9 trillion (US$308.51 million), he said.

Setijoso said the additional outlets would help the company meet its 2002 sales target of Rp 3.6 trillion.

He said financing for the outlets' development would be provided by the company's cash flow.

"With a strong demand coming from customers outside Java, we're optimistic that we can meet the target," Ramayana investor relations Darmawan told The Jakarta Post.

Darmawan also explained that after posting a staggering net profit worth Rp 257 billion last year, the publicly listed company expected a net profit of between Rp 310 billion and Rp 320 billion this year, and between Rp 370 billion and Rp 380 billion in 2002.

As of June 2001, the firm's total assets stood at Rp 1.63 trillion.

Darmawan said that Ramayana was the country's No. 1 retailer catering to the lower and middle-income groups.

"Our marketing strategy has been to focus on the middle and lower-income brackets. It's been working out so far. In this market segment, we're No. 1," he said.

Operating a chain of supermarkets and department stores, Ramayana offers outfits, accessories, footwear, handbags, household goods and other fast-moving consumer items.

Ramayana currently operates 76 outlets throughout Indonesia.(10)