Harvey Nichols repositions targeted market

PT Mitra Adiperkasa (MAPI) Tbk denied our earlier report about closing down Harvey Nichols store in Jakarta. The company said it just relaunched and repositioning the targeted markets. MAPI also claimed the store's performance has been progressing well. 

"We just did a relaunch back in September as well as repositioning our targeted market. And as far as I have observed, things have been progressing well," Joseph Landri, investor relations of PT Mitra Adiperkasa (MAPI) Tbk said.

Rumors about closing down Harvey Nichols in Jakarta have been out there since December. Kontan newspaper quoted anonymous source early last month about the plan to close down the store, reportedly due to poor prospect. The newspaper even speculated on substantial layoff.

We got the same information last week, most likely because of the so-called "repositioning". But Landri said "this news (closing down Jakarta store) is completely false and deceitful."

Unfortunately Landri didn't provide details about the "repositioning". Let's see whether this "repositioning" will work. 

Late last year, the food market had been closed down. Others have speculated on the closing down of Harvey Nichols after Chloe boutique closed its doors, replaced by store for old stocks from Harvey last year.

PT Hamparan Nusantara, a subsidiary of MAPI, entered into an exclusive license agreement with Harvey Nichols in January 23, 2007 which grants the company the right to open and operate stores Harvey Nichols, guaranteed by the company. Under the agreement, Hamparan shall pay royalty and other fees based on certain percentage.

MAPI is listed on IDX with market capitalization of Rp1.09 trillion as of January 22, 2009. The company reported net sales of Rp4.04 trillion in nine months of 2009, increased 15.6% from the same period in 2008. Unfortunately, no details provided on individual stores. 

MAPI booked net profit of Rp166.3 billion in Jan-Sep 2009, doubled from Rp83 billion in the same period of 2008, but mainly due to non-cash gain in foreign exchange translation of Rp147 billion. The company's operating profit increased 14.5% in the period. MAPI is controlled by PT Satya Mulia Gema Gemilang (58%), Prudential Life Assuance (6.76%), and public (34.4%). 

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