PT Matahari Putra Prima Tbk
Established in 1986, PT Matahari Putra Prima Tbk (“MPPA”) has successfully become a prominent modern retailer in Indonesia. The divestment of non-core assets at the end of 2012, poised MPPA to focus on its core FMCG modern retail business in order to capture and serve the large potential consumer market. Today MPPA has become a shopping destination and successfully operates 189 stores across Indonesia supported by its own extensive distribution network.
MPPA’s strategy to becoming a multi-format FMCG operator continued to unfold. In 2015, strategic Hypermart locations were remodeled to the new concept as well as new stores being built following this new concept. MPPA also launched Primo premium supermarket, FMX convenience store concept and revamped Boston Health & Beauty format.
MPPA made great strides at addressing its long term positioning with the most critical change being the implementation and switch to the cost method of inventory measurement technique in the 3rd quarter of 2016. This milestone was positioned to address the final obstacle impacting comparable sales which was the pricing factor, that was addressed in 2017 with the launch of its pricing strategy. It also placed MPPA in a position to better understand the profitability of its assortment thus enabling long term margin management/control at the SKU level while simultaneously addressing the pricing matters.
Within the continued, challenging market condition and increased competitive environment in 2018, MPPA aligned its retail business strategy. It reaffirmed its key focus toward consumer retailing through its Hypermart and Foodmart formats, and reduced its exposure from the large, unprofitable B2B business. The key focus strategy is supported by new competitive pricing on daily basic necessity products, while MPPA continues its cost efficiency efforts on all expenses, inventory management and more efficient store formats.
MPPA’s focus toward consumer retailing continued in 2019. In addition to the relaunching of Hypermart, Primo and Foodmart stores adapted to market condition and consumers’ needs, MPPA also strengthened its retail role by launching Hyfresh, a community- supermarket concept, with arrays of daily household products being offered at competitive prices in the market.
In the midst of Covid-19 pandemic, the Company started to strengthen and develop its Offline to Online (O2O) online business in 2020 through its Hypermart Online e-commerce platform and the launch of Chat & Shop by Whatsapp which is supported by Park & Pickup and BELLA (Single National Whatsapp Number) features, as well as started its collaboration with several leading marketplace operators such as Grabmart, Shopee and Tokopedia. Pursuing its focus to enlarge its O2O business in 2021, the Company continued to strengthen its all online business platform sustainably with further development of its organic online business, Hypermart Online and Chat & Shop, and expanded its collaborations with more leading marketplaces. This is also supported by the expanding usage of digital payments such as GoPay, OVO, Shopee Pay and QRIS national system accessible from various mobile banking applications and other digital payment systems.