Matahari (department store)
PT Matahari Department Store Tbk, known as Matahari, is the largest retail platform  in Indonesia  with stores located across the country and online presence on Matahari.com, For over 60 years, Matahari has provided the growing Indonesian middle class with quality, fashionable and affordable apparel, beauty and footwear products. 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. It currently operates 140 stores in  77 cities across Indonesia. In this digital era, Matahari capitalize digital technology through the omni-channel retail experience. Acknowledging the importance of physical shopping experience and online presence, the pandemic has accelerated and highlighted an increasing demand for the omni-channel retail experience to serve consumers. In order to deliver a seamless omni-channel shopping experience, Matahari has opened its online channel, namely Matahari.com, Social Commerce Shop & Talk, as well as official store in marketplace, such as Shopee and Tokopedia. Matahari also deliver the message to society through social media such as Matahari YouTube channel and Instagram @matahari and @storyofmatahari . Matahari had a strong Q1 2022 performance in spite the Omicron variant peaking in February. Also, retail operating hours normalizing and restrictions being largely removed aids trading conditions going forward. Matahari's new merchandise and merchandising practices helped both sales and margin productivity, and a strong recovery momentum boosts our ability to invest in stores, technology, and marketing to create a virtuous cycle. The Company continued to focus on operational excellence, strategy execution, and cost rigor to drive superior results. Matahari also 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. 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 closing 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. 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 also received additional banking facilities worth Rp500 billion in 2020. For information, Matahari has fully repaid the loan in 2021. 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. Project Sunrise. In 2022, during Q4 2021 Earnings presentation, Matahari announced its plans to create four store concepts to capture the middle-up class that is currently dominated by Sogo Department Store in Indonesia. Dubbed "Project Sunrise", the project was made as part of its  recovery from COVID-19 impact. The four concepts are following: Flagship Core Mainstream Pareto Compact The Pareto Compact store concept is currently underway yet to be unveiled, while Matahari's flagship concept stores at Plaza Ambarrukmo and Mal Taman Anggrek, followed by the reorganization of Supermal Karawaci store as the Core store, will be unveiled in 2022.