PT Ramayana Lestari Sentosa Tbk, a retail company built and own by Paulus Tumewu, open a new store today in Garut, West Java.
The new store is placed in Ramayana Plaza, located on the former weaving mill in Garut. It will be the 111th department store of the retail company. Setyardi Surya, director of Ramayana, said the new store would be the last one open before Ied Mubarak and possibly for the whole year.
For this year the company has opened three new stores in Padalarang, Kediri, and Garut. The last two were open in the second half of this year, and contributed 24,000 square meters (sqm) for the company’s retail space to total 909,000 sqm.
The company also expands it existing stores in Bogor, Sukabumi, Malang, and Banjarmasin. “For the first half we add another 3% of retail space from total last year 830,000 sqm and for the second half we want to achieve another 7%,” he said during a fasting break on Tuesday.
The company has a strategy to expand outside Java, but since permission and the location is more available in the island it has open some new stores here. It allocated Rp 400 billion in capital expenditure to add more retail space.
Ramayana, a retail company that targeting mid to low-income costumers, is very dependent on the seasonal sales like Ied Mubarak and Christmas. Therefore, he project the sales for the July-December period will contribute 60% of the company’s revenue. “Our sales in June is 6% higher than our target,” Setyardi said.
To increase it sales during Ramadhan, Setyardi said Ramayana operate its stores for longer hours, conduct midnight sale in some stores, and speed up the transaction process.
Ramayana booked Rp 2.65 trillion consolidated sales in June 30, up 8.7% from previously Rp 2.44 trillion. Net profit grow 50.6% from Rp 48.93 billion to Rp 73.71 billion, even though the company book Rp 10.3 billion exchange loss since Rupiah is stronger than the US dollar over the last year.
According to Reuters, consensus done by nine analysts estimate the company’s sales by the end of this year will be Rp 6.59 trillion, slightly below the company’s target Rp 6.85 trillion.
The share holders meeting in May decided to distribute 60% of last year net income as dividend or Rp 30 per share. It share price [stock code: RALS] unchanged Rp 830 at the closing in Indonesia Stock Exchange.
Tumewu, 58, open Ramayana first outlet in Jalan Sabang, a popular hawker street in Jakarta. He was arrested in 2005 for not paying taxes. Charges later dismissed after he paid.
Ramayana sell everything from food to toys at low prices. It operates department store under Ramayana and Robinson brands, and supermarket. Danareksa Sekuritas estimates the supermarket business will contribute 28% of the total revenue. Nevertheless, the supermarket gross margin is 12% and productivity rate around Rp 1 million to Rp 1.25 million per sqm. “Therefore the company is considering to make a joint venture with foreign operator.”