Jakarta, CNN Indonesia –
PT Sun Department Store Tbk (LPPF) said it had closed seven ok this time of year due to losses.
Matahari Department Store Corporate Secretary Miranti Hadisusilo stated that the management had planned this closure carefully.
“Yes, it is true (not profitable), so it was planned to be closed because it was not profitable,” said Miranti CNNIndonesia.com, Friday (23/10).
The seven outlets are spread throughout Indonesia. First, 1 outlet in Palembang, South Sumatra. Second, 1 outlet in Bogor, West Java. Third, 1 outlet in DKi Jakarta.
Fourth, 1 outlet in Balikpapan. Fifth, 1 outlet in Bali. Sixth, 1 outlet in Padang, West Sumatra. Last one, 1 outlet in Cirebon, West Java.
Apart from closing outlets, Matahari Department Store has also cut employee salaries since April 2020. This is in line with the rampant cases of corona virus transmission and restrictions on activities in public spaces.
“Yes, it’s true (salary cuts since April 2020,” said Miranti.
However, he said now the company is starting to restore salary cuts to employees. Miranti ensures that employee salaries will return 100 percent in the fourth quarter of 2020.
Matahari Department Store itself posted a loss during January-September 2020. The company recorded a net loss of IDR 617 billion.
The loss occurred because the company’s revenue fell 57.5 percent to IDR 3.3 trillion. Matahari Department Store CEO and Vice President Director Terry O’Connor said the company’s finances had deteriorated due to the covid-19 pandemic.
“The ongoing covid-19 pandemic has accelerated the closure of underperforming outlets in line with Matahari’s efforts to restructure its business,” explained O’Connor in an official statement on the information disclosure on the Indonesia Stock Exchange (IDX).
According to him, the company’s finances had improved in July to mid-September 2020. However, Matahari Department Store’s revenue worsened again after some regions re-imposed large-scale social restrictions (PSBB).
“This caused Matahari to temporarily close some of its outlets, thus slowing down performance during the quarter,” added O’Connor.
On the other hand, Matahari Department Store also opened three large format outlets this year. Thus, the company currently operates 153 outlets in 76 cities in Indonesia.
“The company intends to end the year with a portfolio of around 150 profitable large format stores,” explained O’Connor.
(aud / sfr)
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