Seriously Grow IKEA By Closing Giant, Hero Supermarket Now Opens A Furniture Business

Illustration. (Photo: Doc. Antara)

JAKARTA - The retail company PT Hero Supermarket Tbk some time ago closed all of their Giant outlets in the country. However, recently, the issuer codenamed HERO established a new subsidiary engaged in the furniture industry.

In the disclosure of information on the Indonesia Stock Exchange website, quoted on Thursday 15 July, HERO established PT Distribution Mebel Nusantara (DMN) since last Friday 9 July 2021.

Hero Supermarket Corporate Secretary Iwan Nurdiansyah said that his party together with PT Rumah Mebel Nusantara, are the controlling company of DMN with a total share ownership percentage of 99.99 percent of the total issued and paid-up capital.

"PT DMN was established with an authorized capital of Rp. 11 billion, which is divided into 1.1 million shares," Iwan wrote.

In Nusantara Furniture Distribution, HERO controls 99.99 percent of ownership. The ownership is equivalent to a nominal value of IDR 10.99 billion.

The joint venture company is projected to be engaged in the wholesale trading business. Recently, HERO announced the closure of its Giant hypermarket operations, of which five are planned to be transformed into IKEA stores.

Iwan said that the establishment of the subsidiary will not have a negative impact on the company's operational, legal, financial condition and business continuity.

Based on the financial report as of March 31, 2021, the supermarket issuer posted a net income of IDR 1.76 trillion, which decreased by 32.20 percent from the position of IDR 2.60 trillion in the same period the previous year.

But on the other hand, the company was able to reduce the current period's loss from IDR 43.56 billion in the first quarter of 2020 to IDR 1.65 billion in the first quarter of 2021.