PT Matahari Department Store Tbk
TypePublic
IDX: LPPF
ISINID1000113301
IndustryRetail
Founded24 October 1958 (1958-10-24)
HeadquartersMenara Matahari,
Tangerang Regency, Banten
,
Indonesia
Number of locations
156 across Indonesia
Key people
Revenue
  • Increase IDR 4,980 Billion (9M 2023)
  • Decrease IDR 1,027 Billion (9M 2023)
  • Decrease IDR 631 Billion (9M 2023)
Total assets
  • Increase IDR 5,519 Billion (30 Sep 2023)
Total equity
  • Decrease IDR 3.5 Billion (30 Sep 2023)
OwnerPublic (48.24%)
Auric Digital Retail (42.47%)
Multipolar (9.29%)
Websitematahari.com

PT Matahari Department Store Tbk, commonly known as Matahari, is the largest retail platform in Indonesia with stores located across the country and online presence on Matahari.com.[1]

History

The Company was established on October 24, 1958, with the opening of a children's fashion store in Jakarta's Pasar Baru district; the first proper Matahari outlet was opened in 1972, considered as the first modern department store in the country.

Since July 14, 2021, the majority and controlling shareholder of Matahari Department Store Tbk has changed to Auric Digital Retail Pte. Ltd. Meanwhile, Multipolar remains one of the main shareholders. The rest are other investors. Currently, Matahari operates 156 outlets in 81 cities throughout Indonesia.

Matahari posted a full-year performance that exceeded expectations throughout 2021, in line with the improving traffic to shopping centers, compared to 2020. Matahari recorded a net profit of Rp913 billion in 2021 compared to a loss of Rp873 billion in 2020. This was supported by the trading performance in the fourth quarter of 2021, the easing of restrictions, and initiatives taken by the Company.[2] Amid the pandemic, the Company booked a positive performance during the first nine months of 2021. Matahari posted growth both in terms of top line and bottom line. Matahari noted that the emergency PPKM which began in early July 2021 made the Company temporarily close several outlets for two months, with another 31 outlets remaining open with various restrictions. In early September 2021, Matahari re-opened 100% of its stores and continues to gain a positive recovery week by week. This continued in October 2021 with the recovery reaching over 70% compared to 2019.[3]

Matahari's digital initiatives were to withstand deeper pressures in 2020. Matahari reduces all operating expenses through negotiations with shopping center owners for reduced rental costs. With heavy liquidity pressure, LPPF received additional banking facilities worth Rp500 billion in 2020.[4] For information, Matahari has fully repaid the loan in 2021.[5] Matahari continues to enforce cost controls to keep cash flow liquid. The Company remains conservative in its capital expenditures. All employees who initially received salary delays received full salaries in the fourth quarter of 2020, albeit with a lower number of employees. At the time, Matahari was confident to be the first retailer in Indonesia to recover salary payments by the end of 2020.[6]

Project Sunrise

In 2022, during Q4 2021 Earnings presentation, Matahari announced its store classification in four store concepts to capture the highest potential whitespaces throughout Indonesia. Store Network Optimization becomes part of the Project Sunrise, a five-year roadmap.[7] The four concepts are as follows:

Flagship

  • Dubbed as the crown jewel of the brand. Targeted for middle-up class.
  • Size: more than 8000 sqm (average 10.000+ sqm)
  • Location: key locations in Tier 1 areas such as Jabodetabek, Surabaya, Medan, Yogyakarta
  • Layout: in-store theatre concept, signature services (beauty bar, cafe, etc.)
  • Assortment: newest and broadest stock of Matahari's product range

Core

  • Targeted to the higher end of middle class
  • Size: average 6000-8000 sqm
  • Location: Tier 1 and 2 areas
  • Layout: select signature services (depending on outlet) and higher quality visual merchandising
  • Assortment: fresh competitive product range

Mainstream

  • Emerging catchment to strengthen market leader position with middle class positioning
  • Size: average 5000-7000 sqm
  • Location: Tier 2 and 3 areas
  • Assortment: besed on regional tastes

Pareto Compact

  • Size: ~3000 sqm
  • Location: upper-mid lifestyle/family malls with limited space and in metro areas
  • Layout: redesigned trading areas and optimal non-trading space
  • Assortment: only top-performing brands and SKUs with heroes brands and traffic drivers (beyond apparel)

[8][9]

Rebranding

On 8 October 2022, Matahari launched a new identity and brand new imagery moving in the direction of a large format specialist or as the Company refers to a 'House of Specialists' where it represents a rejuvenated merchandise offer, fresh new store concepts, upgraded customer experience. Located in the atrium of Taman Anggrek Mall, Matahari launched the House of Specialists concept to serve the specialist fashion needs of the biggest cohorts of customers across Indonesia in line with its five-year strategy of building market share in its target market as the most pervasive retail brand in its sector.

To realize the 'House of Specialists' concept, Matahari focuses on four main things: Products, Price, Customer Experience and People. Matahari provides diverse fashion products and constantly adds new brands in all categories. The collections are aspirational because the products are carefully curated based on customer personas, trends, and fresher designs, ensuring a stylish look for daily wear. The collections at Matahari build a sense of 'feel good'. Matahari also has a range of international quality products at affordable prices. To get an optimal shopping experience, customers can take advantage of the free Matahari Rewards membership and get flexible and direct shopping discounts.

Now, the shopping experience at Matahari is fun & engaging with multi-skilled staff equipped with new modern uniforms. The outlets are illuminated by environmentally friendly LED lighting with shopping aisles that are neatly arranged and spacious. Matahari optimizes the layout of its products into specialist areas such as men's wear, beauty, ladies' wear, baby shop, children's wear, footwear, and casual sport. A carefully reorganized shopping area makes it easy for customers to search for the items they need. Matahari also provides Shop and Talk, where customers can shop via their personal shopping assistant to help find the things they need. Moreover, there is also Click-and-Collect service, which allows customers to purchase via online and collect it at the nearest stores.

In addition to empowerment activities with employees and business partners, Matahari also increases its concern in building the education of future generations through 10 library schools renovations in 10 areas in Indonesia. Matahari impacts more than 1,000,000 lives through local job creation and community support.[10]

References

  1. ↑ Matahari Department Store Tbk 2020, p. 6-7
  2. ↑ "Mantap! Laba Bersih Matahari Department Store (LPPF) Balik Rugi Jadi Laba Rp913 Miliar | Market". Bisnis.com (in Indonesian). 2022-03-03. Retrieved 2022-04-28.
  3. ↑ Intan, Kenia (2021-11-05). Rahmawati, Wahyu T. (ed.). "Pendapatan naik dua digit, Matahari Department Store (LPPF) membukukan laba". kontan.co.id (in Indonesian). Jakarta: Grahanusa Mediatama. Retrieved 2022-01-31.
  4. ↑ "Pandemi Bikin Matahari (LPPF) Rugi Rp873 Miliar pada 2020 | Market". Bisnis.com (in Indonesian). 2021-02-17. Retrieved 2022-01-31.
  5. ↑ Olavia, Lona. "Semester I, Laba Matahari Department Store Naik Jadi Rp 533 Miliar". BeritaSatu.com (in Indonesian). Jakarta. Retrieved 2022-01-31.
  6. ↑ Fitri, Amalia Nur (2020-10-27). Mahadi, Tendi (ed.). "PSBB dilonggarkan, LPPF percaya diri kerugian tidak kian melebar sampai akhir 2020". kontan.co.id (in Indonesian). Jakarta: Grahanusa Mediatama. Retrieved 2022-01-31.
  7. ↑ "Q4 / FY 2021 EARNINGS CALL" (PDF). Archived from the original (PDF) on 4 March 2022.
  8. ↑ "MATAHARI MEMBUKUKAN EBITDA Rp 1,3 TRILIUN MESKIPUN KUNJUNGAN MALL BELUM KEMBALI KE TINGKAT PRA-PANDEMI" (PDF). Archived from the original (PDF) on 4 March 2022.
  9. ↑ "Matahari Department Store Tambah 10 Gerai pada 2022 - Saham Liputan6.com". m.liputan6.com. Retrieved 2022-03-04.
  10. ↑ "Matahari Launches a New Identity and Brand-new Imagery". matahari.com. Retrieved 2022-10-08.
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