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Indonesian convenience store chain announces expansion plans.
PT Sumber Alfaria Trijaya, owner of Alfamart, announces that it will add another 800 outlets to the Indonesian market this year. This brings the total number of stores in their network to more than 13,000. Half of these new stores will be opened within the Java Island, with the remainder being spread across the territories of Sulawesi, Kalimantan and Sumatra.
Also, in this year, the chain will add another 150 stores to their network in the Philippines, increasing their total number of stores there to more than 500. While their existing 400 outlets are located in the Greater Manila area, these new stores are intended to extend Alfamart’s reach to regions outside of Manila.
These announcements come even as Alfamart announced that net profit for 2017 fell by 50% versus 2016. The final reported profits for 2017 was IDR 300.3bn (US$21.8m), even though net revenue increased by 9.4% to IDR 61.4trn (US$4.46bn).
PT Sumber Alfaria Trijaya CEO Hans Prawira said, “Last year was a relatively tough year, and I think it did not only affect us. We could not achieve our target, while operation costs increased.”
The decrease in profits reflect the lack of purchasing power of Indonesian consumers. Alfamart remains hopeful that the government would be able to find a way to resolve the problem.
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