Mitra Adiperkasa to reassess department stores

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May 2017
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Mitra Adiperkasa to reassess department stores
Mitra Adiperkasa to reassess department stores


Mitra Adiperkasa of Indonesia which controls Panen Lestari Internusa and the different department store formats Seibu, Sogo, Galeries Lafayette, Debenhams and Lotus in the country as well as many other brand licences, is apparently thinking of scaling back its department store business. The 58 department stores account for around half of the group's retail space but contributed only 2% of operating profit in the first three months of this year according to Asian Nikkei. Customers are spending less on fashion and more on travel and food. Decisions will apparently be made based on a study by Boston Consulting Group, announced by vice-president V.P. Sharma. Competition and slower consumer spending has triggered a focus among Indonesian retailers on profitability rather than merely top-line growth.