JAKARTA (TheInsiderStories) - Three major retail companies, PT Matahari Department Store Tbk (IDX: LPPF), PT Ramayana Lestari Sentosa Tbk (IDX: RALS), and PT Hero Supermarket Tbk (IDX: HERO) recorded poor performances in the first nine months (9M) of this year. Most of their financial reports suffered due to the implementation of the large-scale social restrictions by the local government to fight the virus outbreak.
Based on the published financial reports for in 9M of 2020, Matahari posted a net loss of Rp616.60 billion (US$1.18 million) from a year ago still pocketed a net profit worth of Rp1.18 trillion. The company’ revenues also decreased by 57.49 percent in annual basis (YoY) from Rp7.82 trillion to Rp3.32 trillion.
According to CEO and VP director of Matahari, Terry O’Connor, caused of this limitation, the unit of Lippo Group had closed seven large format outlets and all outlets to make an efficiency due to high operational costs during the COVID-19 pandemic.
The other retailer, Ramayana also scored a loss of Rp95.21 billion in 9M of 2020 reversed with last year pocketed a net profit of Rp612.42 billion. The main cause of this loss was the significant decrease in sales from Rp4.43 trillion to Rp1.90 trillion (YoY).
While, Hero also posted a net loss Rp339.46 billion at the end of September, increased many times from last year’ position was valued at Rp6.68 billion. The revenues decreased 27.65 percent (YoY) to Rp6.86 trillion from the same period of last year stood at Rp9.48 trillion.
The management said that during the pandemic, the company experienced significant challenges due to the implementation of the large-scale social distancing and changes in customer spending patterns. The wholesale, health and beauty businesses were significantly affected by the pandemic, said the company.
“PSBB causes changes in customer shopping behavior and product demand patterns and also has an impact on decreasing visits to the company’ stores inside the mall,” wrote Hero Supermarket.
So far, all company-owned retail stores such as Hero, Guardian and IKEA have been affected due to reduced operating hours, closings of several malls, strict trade restrictions on complementary businesses and limitation of customer visiting capacity.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
