JAKARTA. PT Matahari Department Store Tbk (LPPF) will close six of the 23 outlets included in the watchlist, following the closure of 12 specialty stores and seven outlets in 2020.
On the other hand, the retail company also announced that it would add and open a new outlet in Balikpapan, according to information from the LPPF which was conveyed through information disclosure on the Indonesia Stock Exchange (IDX), Monday (1/2).
Until the end of December 2020, LPPF had a total of 147 outlets with 23 outlets under supervision. This number has decreased compared to the beginning of 2020 which reached 169 outlets. In the first nine months of 2020, LPPF closed 12 specialty stores and seven unprofitable Matahari Department Store outlets. However, LPPF also opened three Matahari Department Store outlets.
Matahari Department Store management revealed that restrictions on community activities during holidays in December 2020 hindered recovery. To overcome this condition, management controlled spending and maintained a low capital expenditure (capex).
Meanwhile, LPPF's performance throughout 2020 was hit hard by the pandemic. Gross sales dropped 52.3% (yoy) to only IDR 8.6 trillion from IDR 18.03 trillion. As a result, LPPF suffered losses of up to IDR 823 billion, while in 2019 it still posted a profit of IDR 1.37 trillion. (AM/LM)