Hero to Spend Rp200B on Expansion

Retailer PT Hero Supermarket will spend Rp200 billion next year to open 10 to 20 new supermarkets in the country, company president Ipung Kurnia said Tuesday (18/12/07), Thomson Financial reported.

The company will also rebrand 10 to 20 "Hero" supermarkets into "Giant" supermarkets, he said. Since the beginning of this year, Hero has changed the name of 13 "Hero" supermarkets to "Giant" supermarkets.

Hero brand supermarkets will serve the middle- to higher-end market segments while Giant supermarkets will focus on the mid- to lower-end market segments.

"As a consequence, revenue contribution from Hero supermarkets could be lower but with higher margins, while Giant supermarkets will contribute higher sales but with lower margins," Kurnia told reporters.

PT Hero Supermarket is 44.5%-owned by Mulgrave BV and 50.1% by PT Hero Pusaka Sejati, with 5.4% held by the public.
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