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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Harvey Nichols will close its Jakarta store

Expensive store Harvey Nichols will close down its store in Grand Indonesia shopping town, Jakarta, reportedly on poor performance. Opened in October 23rd, 2008, the store occupies 9500 square meter pole position at the East Mall of Grand Indonesia and managed by PT Mitra Adiperkasa (MAPI) Tbk, the leading lifestyle retailer in the country.

The food market has previously been closed down. But the Social House restaurant, bar, and wine shop owned by Ismaya Group will keep open its doors.

Harvey Nichols is an international luxury lifestyle store. Jakarta is the only city in South East Asia with Harvey Nichols store. It operates other stores in London, Hong Kong, Dubai, Istanbul, and Riyadh.

Well, the initial plan was to open Harrods in Grand Indonesia, developed by Djarum Group. But even in Singapore the store scored little success. The operator of luxury stores believe Indonesia has lot more affluent customers than Singapore. But looks like the affluent customers prefer to go overseas for shopping.

Mitra Adiperkasa also operates Debenhams and Sogo in Indonesia. The company moved Debenhams from Plaza Indonesia, Grand Indonesia's neighbor, in August 2008 to Karawaci Malla to prevent competition with Harvey Nichols.

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Harvey Nichols

PT Mitra Adi Perkasa Tbk established a new subsidiary named PT Hampiran Nusantara with initial investment Rp100 billion to manage UK-based Harvey Nichols stores in Indonesia. Harvey Nichols Group Limited is now owned by the Hong Kong-based businessman Dr. Dickson Poon whose retail businesses extend to North America, Europe, Japan, China and South East Asia. MAPI also run Debenhams stores. Next in line is Harrods! And, London Casino. We'll call the customers, Londoners! Later we might see The Saks Fifth Avenue.

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