JAKARTA: Fashion retailers in the country are projecting higher revenues in the second half of this year, buoyed by the season of Ramadhan and Idul Fitri that was forecast to give them a sales boost.
Publicly listed Ramayana Lestari Sentosa, the Matahari Department Store and Mitra Adiperkasa are among the retailers reaping benefits from the festivities, during which buying new clothes has become a tradition for many Muslims in the country.
Ramayana director and corporate secretary Setyadi Surya said recently that a huge sales increase in most of his firm’s outlets across the country would have started taking place in early July when most people received their Idul Fitri bonuses from their respective companies.
“We hope that sales during Ramadhan and Idul Fitri will make up around 30 percent of our total sales or revenues this year,” he said.
Setyadi said that his firm aimed to at least maintain its revenue growth this year at a level of 8 percent or Rp 6.3 trillion (US$468.8 million), up from Rp 5.86 trillion in revenues last year.
Ramayana, according to Setyadi, experienced a slow growth in the first half of this year as the country’s economic slowdown has heavily affected the firm’s major customers, who are from the lower middle class.
In the first quarter of this year alone, when the country’s economic growth hit 4.7 percent, its lowest rate since 2009, Ramayana booked a 5.1 percent year-on-year (y-o-y) slump in revenues, down to Rp 1.12 trillion from Rp 1.18 trillion.
The company plans to slow down its business expansion by opening only one new outlet this year, compared to the two or three last year.
Matahari, meanwhile, stays expansive despite the economic squeeze.
Matahari corporate secretary Miranti Hadisusilo said that his firm would open around 11 new outlets this year.
“We opened eight new outlets before the Idul Fitri festivity and we will open at least another three new stores after the festivity,” she said.
Sales during the festivity, which occurs in the second half of this year, were forecast to account for between 30 and 40 percent of the firm’s total sales this year, Miranti said.
Miranti said that Matahari would not be heavily affected by the weakening rupiah and the current economic slowdown.
Middle income families have become Matahari’s major customers, with local brand Nevada becoming the most demanded in their shopping lists.
The firm’s revenues, however, grew by only 9.5 percent y-o-y in the first quarter of this year, lower than the 17.5 percent growth recorded in the January to March period of last year.
Meanwhile, Mitra Adi Perkasa (MAP) corporate secretary Fetty Kwartati said after a previous shareholders meeting that sales during Ramadhan and Idul Fitri would increase by around 20 percent.
MAP, which sells mostly imported brands, has lowered its growth target this year to around 13 to 15 percent from the initial target of between 10 and 20 percent because of an unfavorable economic situation.
In the first quarter alone, MAP’s revenues grew by 10.4 percent y-o-y to Rp 2.97 trillion, far lower than the 26.4 percent growth over the same period last year.
