Indonesian retailer Matahari Putra Prima plans to expand its hypermarket business across Southeast Asia in two years with an investment of IDR1.8 trillion ($189m).
Matahari president director Benjamin Mailool was quoted by JakartaGlobe as saying that the company intends to open at least 20 new Hypermart supermarkets in 2013.
"Currently, Matahari is focusing on developing its Hypermart business with a target of 25 percent in sales growth a year in line with the expansion of our outlets," Mailool added.
"Hypermart is the main driver of our company growth. It contributes around 95 percent of Matahari’s sales, while the remaining comes from non-core businesses like Timezone and Time Bookstore."
Matahari corporate communications director Danny Konjoniang told the website that the company’s target to open 17 stores was the highest in its history.
Danny said the company is looking to expand its retail presence in the eastern region with four new outlets to be opened in Ambon and Jayapura.
Matahari is also planning to divest its non-core assets to its holding company, Multipolar, and planned to boost its presence in the mini-market business with a brand called Bigmart, Danny added.
"We had opened two Bigmart mini-markets in Bogor, West Java, with an investment of Rp 1 billion each."
Matahari Putra Prima is involved in fashion and household groceries businesses. Its key product portfolio includes clothes, jewelries, bags, shoes, cosmetics, electronics appliances, toys, stationeries, books, food, beverage, drugs and other daily needs.
Operationg in three business formats, which include Matahari department stores, Hypermart and Foodmart, the company operates its business through three divisions, which include retail, family entertainment centres and others.
As of August 2012, Matahari had opened seven Hypermart outlets, with ten more to follow by the end of the year.