Tue, 15 Jun 2010

Lifestyle product retailer and the owner of franchise rights of world’s famous food and beverage (F&B) chains PT Mitra Adiperkasa (MAP) will open 20 more Starbucks Coffee Company outlets this year to cope with the surging demand for better tasting coffee in the country.

Corporate secretary and general manager for investor relations Fetty Kwartati said in Jakarta on
Monday that the 20 new Starbucks Coffee outlets would be opened in Jakarta, Surabaya (East Java),
Denpasar (Bali), Bandung (West Java), Medan (North Sumatra), Yogyakarta, Semarang (Central Java) and Balikpapan (East Kalimantan) this year.

As of March, MAP opened five new Starbucks Coffee outlets, including the first one in Semarang, in addition to the existing 74 outlets.

MAP also planned to open 10 new Burger Kings and 10 Domino’s Pizza outlets in Jakarta this year, Fetty said. “We plan to open the first Burger King outlet in Surabaya next year,” he added.

MAP, which also operates Sogo department stores in Indonesia, has opened 11 Burger King and five Domino’s Pizza outlets in Jakarta.

According to Fetty, as of last December, the company’s F&B business contributed 10 percent to its revenue. The majority or about 59 percent of its revenue came from its fashion, sports and children products retail businesses.

MAP also plans to open a new SOGO department store outlet at Central Park Mall in West Jakarta
in the third quarter, as addition to the existing 10 outlets in various cities.

“We have allocated Rp 300 billion [US$32.7 million] to finance business expansion,” Fetty said,
adding that the funds would come from the company’s internal cash reserves.

“We are confident in doing business expansion because the number of our consumers, which come
from the middle-upper class with an average monthly income of more than Rp 3 million, is increasing,” she said, citing last year’s Nielsen Indonesia data showing a 14 percent increase in the number of MAP customers.

Besides opening new outlets, she said, MAP was also working together with several banks, including HSBC and Citibank, to offer attractive discounts to credit card holders.

The company is targeting a 20 percent growth in net sales to Rp 4.93 trillion this year from
Rp 4.112 trillion last year.

In the first quarter, MAP booked a 13 percent increase in net sales to Rp 1.048 trillion from Rp 930.2 billion in the same period last year. From the net sales, the company recorded a 55 percent increase in net profit to Rp 30.2 million from Rp 19.4 million.

MAP is an authorized distributor and franchisee of 90 international top-line brands, including Reebok, Zara, Swatch, Tumi, Maxmara and Giorgio Armani. (rch)