Tears Of Employees, Giant Managers Still Lose Billions Of Rupiah, Revenue Down 32 Percent

Giant Supermarket outlets. (Photo: Doc. HappyFresh)

JAKARTA - Giant's managing retail company in Indonesia, PT Hero Supermarket Tbk is still mired in pandemic conditions. The Company recorded a decrease in revenue and still losses in the first quarter of 2021.

Quoted from the financial report of the issuer coded HERO shares, Wednesday, May 26, the company posted revenues worth IDR 1.76 trillion in the first quarter of 2021. This achievement decreased by 32.20 percent compared to the same period last year which was worth IDR 2.60 trillion.

The decrease in operating expenses was recorded to IDR 514.89 billion in the first quarter of 2021 from IDR 774.48 billion in the first quarter of 2020. As a result, HERO's current period losses are thinning.

Ikea and Guardian's current period loss was IDR 1.64 billion in the first quarter of this year, reduced compared to a loss of IDR 43.55 billion in the first quarter of 2020.

Hero Supermarket President Director, Patrik Lindvall, said the company still faces significant challenges in the first three months of this year due to the COVID-19 pandemic that restricts the movement of people which leads to a decrease in visitors traffic.

"Grocery business and the health and beauty of the company significantly continue to be negatively affected by this pandemic. The restrictions led to a change in customer shopping behavior", Patrik said.

Judging from HERO's portfolio, IKEA's performance is said to be affected by operational capacity restrictions but can be offset by sales growth through e-commerce. Ikea's total operating profit decline at the start of the year was due to a decline in store profitability as revenue weakened.

Meanwhile, pre-opening costs are high for plans to open new stores this year. Until the first quarter of 2021, IKEA Indonesia has opened a third store in Bandung and strengthened its position as a franchise player in Indonesia.

This year, HERO will still open its fourth IKEA in Jakarta Garden City. As for guardian outlets, Patrik said, decreased due to reduced operating hours and the closure of several malls.

"As a result, this materially affects the performance of supermarkets as a large format shopping destination that is the main tenant in shopping centers/malls and is the majority of places where giant shops are located", Patrik said.