Lifestyle retailer PT Mitra Adiperkasa Tbk (MAPI) plans to expand and open new outlets domestically and abroad in 2022, with capital expenditure (Capex) of IDR390 billion.
The publicly listed company was established in 1995, with its initial public offering (IPO) in 2004. Its presence are spread out in 81 Indonesian cities. MAPI has 110 retail concepts, with over 150 brands and 2,600 retail stores includes sports, fashion, department stores, kids, food & beverages and lifestyle products. Some iconic brands include Starbucks, Zara, Marks & Spencer, Sogo, Seibu, Oshkosh B’Gosh, Reebok and many others. In 2011, the company is listed in Forbes’ Top 40 companies in Indonesia and became Top 20 Most Admired Companies by 2012.
Aggressive expansion from 2022 onwards
MAPI Vice President Director Virendra Prakash Sharma said the company was preparing Capex for 2022 for between IDR1.2 trillion and IDR1.3 trillion but had only absorbed 30%, or IDR360 billion to IDR390 billion.
“We are going to spend the Capex as a whole definitely based on the situation. Since there are more brands, there are also food and beverage segments. By the end of the 2022 first semester, it had absorbed 30%,” he said during a public expose on July 28, 2022.
Sharma was optimistic that the company was on the right track to achieve its target this year.
MAPI is aggressively focusing on expansion to Asia mainly in Malaysia and Singapore. The company aims at middle to high brands such as Converse and Reebok shoe brands. Other than Indonesia, the company aims for the Philippines as the next market. By 2022, the company is targeting to establish over 400 retail stores and by June, it already opened 183 retail stores.
Challenges to retail market during Pandemic
Retail industry is one of the segments that got hit hard during the COVID-19 pandemic, kontan.co.id reported. Some companies had acquired losses. According to the Indonesian Retailers Association (Aprindo) Chairman Roy Nicholas Mandey, due to the limitation in mobility and the decreasing public consumption, retailers suffered a drop in income.
According to MAP’s financial record, the company earned IDR19.56 trillion revenue in 2019. However, the pandemic made the revenue drop to IDR14 trillion in 2020 but the company managed to increase its revenue to IDR17.5 trillion in 2021.