PT Matahari Department Store Tbk (LPPF) in 2020  recorded a net loss of Rp900 billion reversing from a Rp1.4 trillion net profit in the previous year.

One of the triggers was the low net sales achievement, which fell by 52.9% (YoY) to Rp4.8 trillion. However, the operating expenses rate was successfully reduced by around 27.4% to Rp1.1 trillion, supported by negotiations with mall owners and consolidating all support center activities in one location.

"COVID-19 has had an unexpected impact on businesses around the world, and Matahari is no exception. Throughout 2020, the company will operate in an environment with a very high level of uncertainty. In March, Matahari temporarily closed almost all outlets, and then reopened gradually in May, "said Chief Financial Officer of Matahari, Niraj Jain, in an official statement, on Thursday (18/2).

In mid-September 2020, the government imposed restrictions again, resulting in outlet closings/operating hours restrictions and customer number restrictions.

During the year, Matahari opened three stone-format stores, closed 13 unprofitable large-format outlets, and ended its specialty store business by shutting down all 12 specialty stores and consolidating its distribution business.

In the second quarter of 2020, the company received additional bank facilities worth Rp500 billion from the previous facility of Rp1.7 trillion.

He believes it is implausible that sales will return to normal before 2022. Therefore, the company focuses on keeping customers and employees safe while preparing for a recovery that can come at any time.