MAP Covered Losses from Mall Closures with Online Sales

1 month ago . 1 min read
MP
Marella Putri
Writer at Forbes Indonesia
MAP Covered Losses from Mall Closures with Online Sales

by Ulisari Eslita

Online sales have been up significantly for the past few months as the widespread coronavirus still keeps many shoppers at home and away from physical stores. PT Mitra Adiperkasa (MAP) is one of the retailers that benefitted from online sales. During the first half of 2020, MAP online sales grew almost 400%, while in the 2Q-2020, its sales grew over 600% year-on-year.

There were also increases in sales for Foodhall supermarket, LEGO and other F&B brands due to the large-scale social restriction implementation, work and study from home policies, as well as surging demand for home deliveries for groceries and daily necessities.

“We have taken decisive action to strengthen our business by reinforcing all of our brands’ omnichannel capabilities. Digitalization has accelerated and remains at the center of all future investment decisions,” says Ratih D. Gianda, VP Investor Relations & Corporate Communications MAP Group.

However, MAP’s results have been significantly affected by mall closures and a slowdown in consumer demand, due to the COVID-19 pandemic. During the first half of 2020, MAP reported net revenue of Rp 6.79 trillion, a 40% decline from Rp 10 trillion in 1H-2019. Consequently, MAP’s net loss during the semester amounted to Rp 455.8 billion.

Furthermore, in the second quarter of 2020, MAP reported a 50% decrease of net revenue from Rp 5.34 trillion in 2Q-2019 to Rp 2.08 trillion in the 2Q-2020. The decline was a result from the widespread stores’ closure due to the pandemic.

Going forward, MAP will tap on its three million members of MAP CLUB as MAP’s vehicle to a more data-driven, full-fledged omnichannel company.

MP
Written By
Marella Putri
Writer at Forbes Indonesia
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