Matahari Set To Open 5 New Stores In December; Invests In New Logistics Facilities

PT Matahari Department Store Tbk (“Matahari” or “the Company”; stock code: “LPPF”) today announced it is set to open 5 new stores during December. 2 of the 5 stores are large format stores located in Gresik, East Java (opened December 14) and Prabumulih, South Sumatra (opened December 21).  The other 3 stores are 361 Degrees specialty stores, in Jakarta and Surabaya.  As previously announced, Matahari has been appointed the exclusive retailer in Indonesia of sporting goods retailer 361 Degrees, a major sponsor during the last Asian Games in Jakarta.

The 5 new stores will bring Matahari’s 2018 new stores to 7 stores, having opened 2 stores in Mamuju, West Sulawesi and Cilegon, Banten earlier in the year, and the total store count to 159 stores across 75 cities in Indonesia by the end of the year.

In support of the continued growth of its store footprint, as well as its omni-channel strategy, Matahari also announced the completion of a Rp 299 billion investment in land for its new distribution center in West Java. The new facility is expected to become operational by 2020.

Earlier this month the Company launched its new Matahari mobile app, which, along with its online presence at MATAHARI.COM, will enable the Company to better meet the needs of its growing online customer base. Both channels will continue to leverage the technical infrastructure of SEG (owner of MatahariMall), however in light of the recent changes in SEG’s strategy to focus on supporting Matahari’s own Omni-channel development, the Company has decided to take a prudent stance and fully impair its Rp 770 billion investment in GEI, the parent company of SEG, at the end of 2018.

Richard Gibson, CEO and Vice President Director of the Company said, “We are very excited about the continued growth in our core retail businesses, as well as the development of our logistics and digital capabilities. These strategic investments lay the foundation for our future growth strategies, and will provide our customers with even better experiences as we grow our off-line and on-line presence across the country.”