|Title:||Indonesia estimated department store sales in rupiah and percent change for 2007 to 2011|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
Estimates of department store sales, 2007-2011
Year Sales (Rp trillion) Growth (%)
2007 XX.X -- 2008 XX.X XX.X 2009 XX.X XX.X 2010 XX.X XX.X 2011 XX.X XX.X Average growth XX.X
Sources: ICN processed
Department store business has not grown as fast as other retail business such as hypermarket and mini-market selling food products, etc. Department store sells non food products such as fashions including clothes, bags, shoes, accessories, furniture with self service system of purchase. An outlet of department store varies from XXX square meters to XX,XXX square meters such as Sarinah and Pasar Raya, but most department store outlets range in size from X,XXX to X,XXX square meters.
Department store business in Indonesia was first introduced in Jakarta in 1962 with the operation of Sarinah department store. The operation of Sarinah inspired the appearance of other stores as the embryos large department stores such as Matahari and Ramayana. Later came foreign department store like Sogo, Metro, Debenhams, etc.
The number of department stores grew in the following years but not as fast as hypermarkets, supermarkets let alone mini-markets. Currently department stores in the country have around XXX outlets, relatively small compared to the number of outlets of hypermarkets, supermarkets and mini-markets. Currently business in department store is dominated by old players Matahari, Ramayana, Sogo and Metro.
Number of outlets and locations
Department stores also have to compete in the retail market with hypermarkets especially as many or most consumers have to set aside fund more for daily needs and cut spending on non urgent requirement like fashions, shoes accessories and furniture.
According to Aprindo, by mid 2011, the number of department store outlets is around XXX units. The increase in the number of department store outlets is small --growing only by tens a year compared to hundreds outlets of hypermarkets and mini-markets.
Most outlets of department store are located in the Greater Jakarta area and other units are found in West Java, Central Java and East Java. The number of outlets of department store in Java is more than XX% of the total number in the country.
New outlets are opened with the opening of new shopping malls or centers. The new outlets are opened in potential cities with trend going to cities outside Java,
which is considered already saturated. However, a number of department stores have been forced to close some of their outlets not considered profitable.
In Java new outlets are opened mainly outside Jakarta to avoid sharp competition in he capital city. More new outlets, therefore, have sprung up in cities like Yogyakarta, Semarang, Tegal, Purwokerto, Malang, etc targeting middle class consumers. They began to grab the market share of traditional markets in those cities. Urban people in the medium sized cities have also been attracted to modernity in shopping.
A player in department store business, PT. Mitra Adi Perkasa Tbk, closed its Sogo outlet in Plaza Indonesia in 2007, following the opening of Seibu outlet in nearby area in Grand Indonesia to avoid competition among affiliates.
Meanwhile, PT. Rimo Catur Lestari Tbk closed X outlets in Makassar, South Sulawesi and in Bogor, West Java for marketing problem.
PT. Matahari Department Store Tbk
Established in 1958 with first outlet in Pasar Baru, Jakarta by Hari Darmawan. The company expanded in him following years under PT. Matahari Putra Prima Tbk (PT. MPP). However, later PT MPP chose to focus more on hypermarket and supermarket business named Hypermart and Foodmart. In 2010, PT. MPP sold its department store division to CVC Capital Partners from Luxemburg, which renamed the department store PT. Pacific Tama Tbk, before it was changed again with PT. Matahari Department Store Tbk. (PT. MDS). CVC
Capital Partners has long experience in running retail business as the operator of Debenhams, a department store in Britain.
Later CVC Capital and PT. MPP established a joint venture named Meadow Asia Co Ltd (MAC). The two partners were XX% and XX% shareholders respectively. In 2010, MAC and Pt. MPP Tbk signed a sale and purchase agreement under which MAC was to acquire XX.XX% stake of PT MDS Tbk from PT. MPP Tbk in at a price of US$ XXX million or around Rp X trillion.
In 2011, PT MDS was acquired by PT. Meadow Indonesia (PT. MI). PT. MI is controlled by Meadow Asia Co Ltd (MAC) through its subsidiary Asia Color Co Ltd. MAC acquired XX.XX% of PT. MDS.
The acquisition was expected to boost the growth of Matahari Department Store as a retail company. Matahari planned to open XX-XX new outlets per year that in XX-XX years it hopes to open XXX new outlets. Currently Matahari has XX outlets in various cities in Indonesia.
PT. Ramayana Lestari Sentosa, Tbk
This company was established in 1978 by Paulus Tumewu and his wife Tan Lee Chuan both from business families in retail industry in South Sulawesi Together with Agus Makmur, who was then named the president of the company, they opened the first outlet at Jalan Sabang, Central Jakarta named Ramayana Fashion Store. In he beginning Ramayana sold only garments and clothes, but in 1985 it began to sell accessories including shoes and bags.
In 1989, Ramayana already grew controlling a chain of XX outlets and its products grew in variety selling also household goods , toys, stationary, and dry traditional foods. Currently, Ramayana Department Store has XXX outlets spread in Java, Sumatra, Bali, Kalimantan, Sulawesi, and East Nusa Tenggara.
Ramayana launched initial public offering on the Jakarta Stock Exchange on July XX in 1996. By January XX, 2007, its majority shareholder was PT. Ramayana Makmur Sentosa holding XX percent of the shares with the rest held by investing public.
Currently Ramayana operates XXX outlets of department store all over Indonesia. Ramayana has two business units--department store and supermarket. The department store unit is still the largest contributor accounting for XX percent of its income. Ramayana targets middle to lower class consumers spending around Rp XX,XXX per visit. The customers are people with monthly income of Rp X million to Rp X million.
PT. Mitra Adiperkasa Tbk (MAP)
MAP was established in January 1995 with a capital of Rp XX billion of which Rp X billion issued and paid up in X,XXX shares held by shareholders Sarkawi, Benny Gozali, Sintia Kolonas, Marissa Kolonas and Muljani Gozali each with a XX% share with portfolio capital of Rp X billion.
In 1996-1997 half of the shares owned by Benny Gozali and Sintia Kolonas were sold to Sarkawi and the other half to PT. Panen Lestari Internusa (PLI). There company, was therefore, owned by Sarkawi and PLI as XX% shareholders.
After being three times raised the capital of the company reached Rp X trillion and the shareholders changed several time over the years. By January XX in 2007, the majority shareholder was PT. Satya Mulia Gema Gemilang (SMGG) with a XX.XX percent share.
SMGG was established on XX June 1997 with business units in various sectors including construction, trade, transport, warehousing, agriculture, plantation, forestry, fishery, mining and consultancy service . SMGG is XX% owned by PT. Mitralestari Adiperkasa and X% by FX. Boyke Gozali (a nephew of tycoon Syamsul Nursalim).
Meanwhile, PT. MAP Premier Indonesia, established on XX October 2003, has business units in the trade, construction, mining, land transport, agriculture, printing and service sectors. It is XX.XX% owned by SMGG and X.XX% by FX. Boyke Gozali.
MAP's retail business is supported by its garment business. Its business includes in department store (SOGO, Java/Lotus, Debenhams, and Seibu) and specialty shops selling : Sports equipment, Fashion & Lifestyle, Children Fashion and Toys, Food & Beverages, Others.
MAP sells premium goods currently the group holds the distribution, selling and franchise licenses for more than XX world class brands of goods for middle to high ends . MAP also has garment factories to support its retail business having modern training center in Pondok Indah, Jakarta.
In February 2007, MAP closed its SOGO outlet under PT. Panen Lestari Internusa (PLI), a subsidiary at Plaza Indonesia, Jl. MH. Thamrin, Jakarta, in favor of Seibu, to be opened by PLI in the premium class retail space in Grand Indonesia, Jakarta.
In 2010, MAP expanded its outlets from XX,XXX to XX,XXX square meters for department store and specialty stores with an investment of RpX XX billion including a new Sogo outlet in Central Park which came on line in March, 2010.
The number of department store outlets of MAP including Sogo, and Seibu from Japan, Debenhams from Britain and Lotus continued to grow to reach XX this year located in various big cities in Indonesia.
PT. MAP also operates outlets of Alun-Alun Indonesia which specially sell local products of antique, souvenirs, batik, SPA products, and fashions from local designers, fine arts, decorations and books. Currently PT. MAP operates five outlets of Alun Alun Indonesia located in Grand Indonesia, Sogo Bali Collection, Sogo Plaza Senayan, Sogo Central Park, and Soekarno Hatta airport.
PT. Metropolitan Retailmart
PT. Metropolitan Retailmart is the operator of Metro Department Store in cooperation with Metro of Singapore. The first outlet of Metro in the country came on line in 1991 at Mal Pondok Indah, in South Jakarta with the market target mainly the residents of the high class housing complex of Pondok Indah and nearby areas.
The success of the outlet in Pondok Indah, encouraged Metro to open a second unit in 1995 in Plaza Senayan, a business area and high class residential area in Central Jakarta.
In 2001, a third outlet followed in Bandung, in a new and largest shopping center in that city Bandung Supermal. Another branch of METRO was opened in Jakarta in 2002 in Mal Taman Anggrek in West Jakarta.
More outlets followed in 2008 in the Pacific Place, a high class business area in Sudirman Central Business District (SCBD). METRO Pacific Place is an outlet with new classy concept offering a number of expensive imported products.
In 2010, METRO Trans Studio Makassar was opened in Mall Trans Studio Makassar, South Sulawesi. This outlet is the first out side Java. In 2011, a new outlet started operation in Gandaria City, South Jakarta.