Conglomerate Mochtar Riady's Hypermart Market Share Increases To 27.6 Percent In The Third Quarter Of 2021

Illustration. (Photo: Doc. Hypermart)

JAKARTA - PT Matahari Putra Prima Tbk (MPPA) controlled market share by recording an increase from 24.0 percent at the beginning of the third quarter of 2021, to 27.6 percent at the end of the third quarter of 2021 in the 'supermarket and hypermarket' market based on NielsenIQ data.

This achievement was successfully achieved by the company despite the implementation of strict Community Activity Restrictions (PPKM) during that period which was followed by the closure of shops and malls.

"The nine new stores (ex-Giant locations) will lead the way to further increase market share," said Matahari Putra Prima Chief Executive Officer, Elliot Dickson in a written statement, quoted Wednesday, December 1.

MPPA's e-commerce business also continued to grow substantially at 167 percent and represented 11 percent of total regular sales in the third quarter of 2021, which is the highest ratio since the Lippo Group subsidiary transformed its online to offline (O2O) business.

This can be achieved as a result of expanding partnerships with leading marketplaces such as GoMart (GoTo) in the third quarter, as well as continuing to expand the reach of its collaboration with other online marketplaces such as HappyFresh in the fourth quarter of 2021.

Dickson admitted that the third quarter of 2021 was the toughest peak in the COVID-19 situation as well as a tough challenge for business operations as a result of the government's strict PPKM restrictions. In July, all shopping centers had to be closed leading to a significant drop in visitor numbers and drastically reduced business opportunities.

In August and September, children under 12 years old were still not allowed to enter the shopping center, while 29 MPPA stores in October were still not allowed to admit children into the store area.

This had an impact on the main family-based customers to meet their household needs, as well as MPPA stores that were unable to maximize their retail operations during this period. As a result, in that period, the company recorded a lower total sales of 3.6 percent for the period as of September 2021, or reached almost Rp5 trillion.

However, in line with the improving COVID-19 situation and the easing of PPKM, issuers who trade in ready-to-wear, food, beverages, and other goods including minimarkets, supermarkets, hypermarkets, modern shops, franchises, and similar businesses including pharmaceutical trade, medicines, and medical devices both in wholesale and retail, announced that the company's sales direction again experienced positive growth in October 2021.

The main retail format and e-commerce business implemented by the company managed to record positive sales achievements in October compared to September.

Namely, regular sales in stores increased by 27 percent, as well as an online business or e-commerce sales which increased by 19 percent. As a result, overall October sales increased 9 percent from the previous year period. While sales from offline stores started to pick up in October, MPPA sees the online business as strong and continuing to generate positive growth.

Dickson said that with the easing of community mobility, PPKM levels, and business operating hours, October sales showed significant growth compared to previous months and reached pre-PPKM levels in the second quarter.

"In November, we saw that more children were allowed to enter shopping centers or shops and only two of our stores were still not allowed to accept children to enter the store area. This brought momentum to increase our sales performance in the month of November. November. We are trying to change the direction of the company's sales and are preparing to enter the fourth quarter by increasing the amount of inventory to welcome business opportunities in the coming Christmas and New Year period," he said.

Furthermore, the issuer that operates the Hypermart, Foodmart Primo, Smart Club, Hyfresh and Boston Health & Beauty, and FMX stores, Dickson said, is already on the right path of O2O transformation. For this reason, his party will continue to focus on running a retail business, both offline and online. One of them, through the opening of nine new stores (ex-Giant locations) and new collaborations with online marketplaces, such as HappyFresh and others in the fourth quarter.

"This is inseparable in order to transform MPPA into one of the largest online grocery retailers in Indonesia, which has succeeded in synergizing with various major Indonesian technology companies," he added.

On the other hand, Dickon said, Matahari Putra Prima will continue with its planned limited public offering (PUT VI) or rights issue in December to strengthen its capital, where shareholders are committed to supporting the company's business plan.