Destroyed By Matahari, This Retailer Owned By The Boss Of Lippo Conglomerate, Mochtar Riady, Closes 13 Outlets In The First Quarter Of 2020

Illustrations. (Photo: Doc. Gotomalls.com)

JAKARTA - PT Matahari Department Store Tbk (LPPF) recorded an unsatisfactory performance in the first quarter of 2021. It was recorded that gross sales in the first quarter of this year reached IDR 2 trillion or 23.6 percent lower than 2020 and 37.4 percent from 2019.

Quoting the financial report of Matahari Dept Store, Monday, April 26, the net income of this retail company owned by the conglomerate Mochtar Riady has dropped 24.98 percent on an annual basis or year on year (yoy) to Rp1.16 trillion. That number decreased 25 percent compared to the first quarter of 2020 which was recorded at IDR 1.55 trillion.

In detail, the income consists of retail sales, which usually contributed greatly to revenue, which decreased 24.10 percent yoy to IDR741.40 billion from IDR976.77 billion previously. Then, consignment sales and service revenues were also depressed by 22.29 percent yoy and 86.96 percent yoy, respectively.

Then, consignment sales were recorded at IDR416.01 billion from IDR535.36 billion. Meanwhile, service revenue was Rp4.83 billion from the previous Rp37.04 billion.

Matahari Dept Store Chief Financial Officer, Niraj Jain said that COVID-19 still has an impact on all sectors in the world, including the company. Therefore, these conditions impacted SSSG (same store sales growth) by minus 22.3 percent and a net loss of IDR 95.35 billion for the 3 months period ended March 31, 2021.

As of the first quarter of 2021, the company operates 147 outlets, the number is the same as the position on December 31, 2020. The number is divided in Sumatra 28, Java 86, Kalimantan, Sulawesi and Maluku 28 and other regions with 5 outlets.

Of these 147 outlets, there are 124 regular outlets and 23 outlets under supervision. Meanwhile, during the first quarter, Matahari closed 13 outlets this year and there are still 10 outlets under surveillance for the possibility to close. However, there is one new outlet opened this April, namely in Balikpapan Ocean Square.

"Business during the first quarter of 2021 is still affected by the strict PSBB which is valid until February 8, which then continues with the Micro-Scale PPKM which is still being implemented," he said in a written statement, quoted on Monday, April 26.

The Company has started the seasonal program early in order to maintain security for the arrival of visitors and in anticipation of uncertain situations, especially with restrictions on going home for Lebaran 2021.

"We continue to operate in a challenging macro situation. We ensure tight control over operating expenses and capital expenditures. We continue to have the support of mall owners and suppliers," he said.

Niraj said that in addition to increasing liquidity during the pandemic and the recovery of COVID-19, the company has extended bank loan facilities.

"We have extended our bank loan facility worth IDR1 trillion and ended the first quarter with a bank loan balance of IDR480 billion. The company continues to take a conservative position in a situation with high uncertainty," he said.