CSA Aggresive Expansion on Mitra10 Modern Retail Building Materials

Press Release

21 March 2019

Jakarta, 21st of March 2019, PT Catur Sentosa Adiprana Tbk. (CSAP: IJ) The largest & leading distribution company of building materials, chemicals and Consumer Goods / FMCG, and owners of the modern retail chain Mitra10 & Atria continues to grow in the modern retail segment of building materials and Home Improvement by opening the 30th Mitra10 in Cirebon, West Java, at Jl. Sunan Gunung Jati No. 882. Mitra10 under PT. Catur Mitra Sejati Sentosa is a subsidiary that is majority owned by CSAP.

Today, 21st of March 2019, Mitra10 grand opening of its 30th store in Cirebon, West Java, occupying an area of ​​± 1.9 hectares with a sales area of ​​3,800m2, a storehouse covering 2,500m2, and selling ± 20,000 SKUs / item, products are ranging from various ceramics, paints, roofs to home appliances and carpentry equipment. Cirebon is the 2nd tier City which has the prospect of housing growth and a fairly high renovation market.

Mitra10 carries the concept of modern retail, One Stop Shop concept that is supported by a comfortable, convenience shopping atmosphere with a complete selection of goods and guaranteed prices (Price Integrity). There are 80% of products choice in Mitra10 Cirebon is a local product that contributes to advancing the domestic industry.

To increase customer spending, Mitra10 offers a variety of attractive promos such as special discounted rates during the opening period, special prices for Mitra10 member card holders, additional discounts from Bank Mandiri credit cards and special prices for certain purchases.

The selection of Mitra10 Superstore outlets is inseparable from the growth of residential / housing zones around locations that are Mitra10’s main targets. To improve customer service, Mitra10 also prepares free delievery services within a certain radius with terms and conditions apply.

CSAP’s business prospects are inseparable from Indonesia’s economic growth which targeted by the government at 5.2% (BI). This growth is related to household consumption and housing needs by market. Household consumption growth also increased by 5.1% with an inflation rate of 2.8% (BI). The backlog of housing needs has reached 11 million homes. With this indicator, CSAP is very confident that the business in Indonesia is very prospective, conducive and supports the growth of the CSAP business, which focuses on building materials, both distribution and modern retail.

 

Mitra10 Aggressive Expansion Strategy

CSAP management emphasizes aggressive strategic expansion to capture / strengthen market share. As of 2021, the number of Mitra10 stores will reach 50 stores. The location of the store will be distributed in Jabotabek, Central Java, East Java, Sulawesi and Kalimantan.

In 2019, CSAP consolidated target growth at 13% which is supported by the Distribution growth target of 10% and Modern Retail of 20% to sustain the Company’s consolidated revenue target of Rp. 12.3 trillion in 2019. The aggressive strategy in the Modern Retail segment cannot be separated from the Company’s big plan to have 50 stores Mitra10 Modern Retail networks in the upcoming 2021.

In 2019, CSAP plans to open 5 stores of Mitra10 Superstores format, which will be located in Cirebon, West Jakarta, Solo (Central Java), Yogyakarta (DIY), Surabaya (East Java), and Makassar (South Sulawesi).

CSAP will continue to grow:

  1. Aggressive expansion of Mitra10’s store opening along with the growing need for building materials for the construction / renovation / renovation of residential or commercial buildings and capturing / strengthening market share.
  2. Strengthening the performance of the building material distribution segment by adding new Principal & innovative new products.
  3. Increase the contribution of Private / Exclusive brands (OEM) such as granite tiles, bath & kitchen, lightings, and other products.
  4. Increase productivity by improvement on supply chain management as a result more efficient, sustainable performance over time.

 

Corporate Secretary Division PT. Catur Sentosa Adiprana Tbk.

Jl. Daan Mogot Raya No. 234 Jakarta 11510
Contact Person:
Idrus H. Widjajakusuma
M: +62 819 32930123
P: +62 21 5668801
E: corsec@csahome.com www.csahome.com