Tue, 31 Aug 2010

Jakarta. With a little help from seasonal spending around the Idul Fitri holiday, nationwide retail sales were expected to surge by about 18 percent this year, the Association of Indonesian Retailers said on Monday.

“For 2010, we predict the total market size for the modern retail markets will grow from Rp 85 trillion [$9.44 billion] in revenue last year to about Rp 100 trillion this year,” Rudi Sumampouw, secretary general of the association, also known as Aprindo, told the Jakarta Globe.

Rudi said that while revenue only totaled Rp 35 trillion in the first half of the year, its second-half sales should top Rp 65 trillion with the Idul Fitri holiday fueling a big push in consumer spending.

“Consumers’ buying power increases due to things such as the holiday bonuses that companies give to their employees,” he said.

Danny Kojongian, director of corporate communications at Matahari Putra Prima, told the Globe that sales at MPP retail stores picked up every year during Ramadan, the fasting month leading up to the Idul Fitri, or Lebaran, festivities.

MPP runs Matahari department stores and Hypermart supermarkets across the country.

“Sales during the holy month account for 30 percent of the annual sales for Matahari department stores and 15 percent of the annual sales at Hypermarts,” Danny said.

“During the fasting month all the way up to Lebaran, Matahari department stores conduct Lebaran Sales.”

The country’s modern retail market is comprised of minimarkets, supermarkets, hypermarkets, department stores and specialty stores.

According to Aprindo data, specialty stores, which make up the biggest portion of the market, should see their total revenues up by about 14 percent, increasing to Rp 80 trillion this year compared to Rp 70 trillion last year.

Examples of specialty stores include Gramedia book stores and Guardian drug stores.

There are currently 1.1 million specialty stores across the country, compared to 900,000 at the end of last year.

Meanwhile, the total revenue of Indonesian minimarkets, such as Indomart and Alfamart, should increase from Rp 5 trillion in 2009 to Rp 7 trillion this year.

Hypermarkets, among them Hypermart and Carrefour, are expected to see revenue jump from Rp 3 trillion last year to Rp 4 trillion for 2010.

Supermarkets, such as Hero, can expect total revenues to reach Rp 5 trillion this year, up from Rp 4.2 trillion last year.

Aprindo also said that department stores such as Matahari would see their revenue increase to Rp 4 trillion this year, up from Rp 2.8 trillion last year.

Akhmad Nurcahyadi, an analyst at BNI Securities, said share prices in most listed retail companies had risen by as much as 30 percent this year, although he warned investors not to expect continued gains.

“But because this increase is seasonal, once we get closer to the end of the year, the stock prices will decrease to a level I predict will be an average of about 10 percent higher compared to January’s prices,” he said.

“It’s during these few weeks before the Lebaran holiday that the stock prices will reach their peak.”