Viral Emotional Tears Of Employees, Giant Managers Still Lose Rp1.64 Billion In The First Quarter Of 2021

Giant Supermarket outlets. (Photo: Doc. HappyFresh)

JAKARTA - In the midst of the viral cries of Giant employees on social media TikTok, the manager of the retail company, 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 Rp1.76 trillion in the first quarter of 2021. This achievement decreased by 32.20 percent compared to the same period last year which was worth Rp2.60 trillion.

The decrease in operating expenses was recorded to Rp514.89 billion in the first quarter of 2021 from Rp774.48 billion in the first quarter of 2020. As a result, the hero's current period losses are thinning.

Ikea and Guardian's current period loss was Rp1.64 billion in the first quarter of this year, reduced compared to a loss of Rp43.55 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 visitor 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 outlet keeper, Patrik said, decreased due to reduced operating hours and the closure of a number of 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.

Previously, the news of the closure of all Giant outlets was a conversation on social media, both Twitter, TikTok, and Instagram, and Facebook. On TikTok, a video uploaded by a Giant employee named account @shinta84.66 is circulating, on Tuesday, May 25.

"Finally it's all over ... GIANT collapsed #giantclosing #giant #closedstore #closingstore," wrote @shinta84.66 in a video caption, as quoted by VOI, Wednesday, May 26.