LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

Retail Market OverviewFigure 2.6.1: Annual revenue of Indonesia’s largest public retail companies, 2006Annual Sales (Million Rp)9,000,0008,000,0007,000,0006,000,0005,000,0004,000,0003,000,0002,000,0001,000,0000Source: Jones Lang LaSallePT Matahari Putra Prima TbkPT Hero Supermarket TbkPT Ramayana Lestari Sentosa TbkTotal Sales Growth p.a. (RHS)2002 2003 2004 2005 2006Year20%18%16%14%12%10%8%6%4%2%0%Below are the profiles of major players in the retail industry in Indonesia.2.7.1 Matahari Putra PrimaOne of the pioneers of the Indonesian retail industry, Matahari was founded by Hari Darmawan back in1958 and was publicly listed in 1992. It has grown from a small fashion store in Jakarta into the largestretailer in the country today, with a market share of around 25%, as reported by industry analysts. Sincebeing acquired by PT Multipolar Corporation in 1997, Matahari has introduced several new formats suchas supermarkets and hypermarkets and other supporting formats such as Timezone family entertainmentcentres and the Boston pharmacy. The number of outlets under Matahari Group management currentlytotals over 270 across more than 50 cities throughout the country. Matahari’s sales grew quite significantlyafter Matahari’s consolidation in 2002-2003. Over the last three years saw sales grow at an average of19% per annum.2.7.2 Ramayana Lestari SentosaRamayana Department Store was founded in 1978 and registered with the Jakarta Stock Exchange in1996. During the 1990s the business expanded into the supermarket format and acquired one localdepartment store and a minimarket. Ramayana is considered the biggest player in the department storeformat in the middle to lower class segment. Currently, Ramayana has around 69 supermarket outlets and94 department stores. Sales growth of around 13% per annum was achieved over the past two years.2.7.3 Hero supermarketThe Hero group is known as the pioneer of the modern supermarket format in Indonesia. Opening in 1972,Hero supermarket initially focused on catering to the middle to upper class market. Becoming a publiclylisted company in 1991, Hero continued to dominate this segment, until the expansion of foreignhypermarkets such as Carrefour and Makro in the late 1990s provided significant competition. Sincethen, the group has undergone consolidation and repositioning, particularly after the entry of Dairy FarmInternational (Hong Kong). Currently, Hero caters to a wide segment, from middle-lower through to themiddle-upper income segment. The company has expanded their business by introducing Gianthypermarket in Indonesia, in order to compete with other major players in the market.2.7.4 Mitra Adi PerkasaFounded in 1995, the group is one among the leading retailers in specialty formats, controlling numerousinternational brands for the middle to upper income segment, as well as some foreign-labelled departmentstores under their management. Mitra Adi Perkasa was listed in 2004 and since then has continued toexpand aggressively. With more than 40 store concepts, the group now has over 600 stores in 22 cities inIndonesia, including Sogo and Debenhams department stores. Revenue in 2006 grew by 16% to aroundRp. 3.3 trillion.F-30