After Closing 50 Outlets, Bata Shoe Manufacturer Targets Double Digit Revenue Growth This Year, How To Do It?

Bata Shoe Outlet. (Photo: Doc. Trans Studio Mall)

JAKARTA - Footwear manufacturer, PT Sepatu Bata Tbk (BATA) is aiming for double-digit revenue growth this year. compared to last year's earnings. Director of BATA, Hatta Tutuko explained, his party is optimistic that this year's revenue performance can be much better driven by digital business.

"Our revenue target for this year is to reach double digits from 2020. We think that this target is very realistic with the conditions and work plans that we have planned," he explained in a virtual public expose, Wednesday, June 16.

Hatta added, in order to smooth out this target, BATA will focus on the digital business line by providing ChatShop services, collaborating with several Key Opinion Leaders (KOL) on various social media, to offering various promotions through social media by becoming a Bata Club Member. BATA management hopes that with this strategy, Bata Club members can increase by 240 percent.

What's interesting is that, with a strategy to boost digital business, BATA is not focusing on opening new outlets this year. As of May 2021, BATA has around 460 outlets.

For the record, BATA has closed 50 outlets because it is considered not profitable. This, Hatta said, was due to the decrease in visits to outlets due to the COVID-19 pandemic.

BATA was also forced to streamline its burden by reducing employees. According to Hatta, this was done by not extending the contract and if layoffs were forced, it was carried out in accordance with applicable government regulations.

BATA management is also optimistic about the achievement of this year's performance. The reason, said Hatta, was that his party saw an increase in sales during the Eid period in the first quarter of 2021.

Although he did not mention in detail the sales results obtained, Hatta gave an illustration if his party managed to score good sales in the Lebaran 2021 period compared to the same period last year.

For the record, throughout 2020 BATA recorded a loss of Rp177.76 billion or reversed from 2019 with a profit of Rp23.44 billion. The company's net sales in 2020 were recorded at Rp459.58 billion, down 50.64 percent from the previous year of Rp931.27 billion, with a basic loss per share of Rp136.74.