Indonesia’s Mitra Adiperkasa to open 400 new retail stores by year-end: CEO
THE chief executive officer of Mitra Adiperkasa, one of Indonesia’s largest companies and a leading lifestyle retailer, said a larger omnichannel strategy will be key to ensure its ability to grow in the post-pandemic era.
“After the pandemic, people have started to come back to the shopping malls,” said group chief executive officer V P Sharma, as he noted that the brick-and-mortar business will continue to be a dominant part of Indonesia’s thriving retail industry.
Listed on the Indonesia Stock Exchange, Mitra Adiperkasa has a diversified portfolio that includes department stores, fashion, sports equipment, food and beverage, supermarkets, and lifestyle products. According to its official website, the Jakarta-based company has over 25,000 employees, 2,400 retail stores, a portfolio of over 150 brands, and a presence in 79 cities across the country.
“We are looking to open more than 400 new retail stores by the end of this year. We believe we are on target to do this,” said Sharma.
As with many other businesses both big and small, Mitra Adiperkasa saw a sharp spike in business from online sales in the last 2 years due to the Covid-19 pandemic when scores of people were cooped up at home for months.
From a 1.9 per cent contribution to total sales in 2019, the digital sales component soared to 10.9 per cent in 2020 and 13 per cent at the end of last year. In the first 3 months of 2022, online sales made up 10.3 per cent of the total volume, amounting to 580 billion rupiah (S$53.8 million).
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The plan is to continue to maintain the double-digit contribution from the online sales platforms over the next few years, said Sharma, adding that the company will continue to invest in the e-commerce space. He revealed that there is a budget of 1.3 trillion rupiah for the overall capital expenditure for the whole of 2022, and about 30 per cent of this sum was spent for the first half of the year.
“We are in the process of developing a super-app that will integrate all brands, offline stores, online shopping, e-payments, customer loyalty and customer service chat functions. This super-app is expected to be launched by the end of this year,” he said.
Going forward, Sharma said Mitra Adiperkasa will be prudent as it continues its business expansion strategy, with the growth plan focusing on digital transformation, unifying retail purchase options, launching a regional brand, and to continue partnerships with its brands.
Last year, the company entered into strategic partnerships with the likes of Fitflop, Subway and Foot Locker. Mitra Adiperkasa was responsible for launching the partnerships for the Foot Locker brand in Indonesia, Thailand and the Philippines.
“Indonesia is still the main market for us and our subsidiaries. The Philippines is the second-largest as the customers there love the American brands,” said Sharma. “Vietnam will also be a very important country.”
The other South-east Asian markets Mitra Adiperkasa is active in are Malaysia and Singapore. Sharma said the company will continue to spread its wings across the region, with a greater focus on the middle- to upper-class segments.
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