Download Matahari Department Store Corporate Social Responsibility A

Matahari Department Store
Corporate Social Responsibility
A Strategic Perspective
Presentation by
Travis Saucer
CEO
Matahari Department Store
Lippo Group
PT Matahari Putra Prima Tbk.
Indonesia’s Leading Retail Group
A Strategic Perspective
2007 Exceeding 1 Billion Sales in US Dollars
MDS Department Store division
2007F Sales: Rp5.0 trillion
Matahari Food Business (MFB)
division
2007F Sales: Rp4.5 trillion
TimeZone & Others
2007F Sales: Rp318 billion
Department Store
Hypermarket
Arcade centre
♦ 80 outlets
♦ 38 outlets
♦ 90 outlets
♦ 38 cities
♦ 20 cities
Foodmart
♦ 29 supermarket outlets
♦ 45 cities
Other operations directly held
under Matahari
♦ 25 cities
Distribution
Boston Pharmacy
♦ 3 centres
♦ 42 Health & Beauty Centers (HBC)
♦ In-house support
Property
♦ Property management
♦ Retail leasing
Note: No of outlets as of February 26, 2008
A Strategic Perspective
Indonesia’s Largest Department Store
A Strategic Perspective
Matahari Department Store Group
„
Target middle and upper middle income consumers:
Particularly targets females/families between ages 15
to 45.
„
Store size typically ranges from 4,000 – 15,000 sqm
– Modern, well-lit and well fixtured.
„
MDS competes on Fashion, Value and Quality.
A Strategic Perspective
2007 Matahari Department Store’s Most
Successful Year in Its 50 Year History
 Highest ever same store sales growth performance
in 2007 at 13.7%
 2007 EBIT Margin of 10.4% - highest ever, best of
class worldwide
 Develop long-term, strategic plan of multi-segment
business to double sales within 5 years
 Sales hit Rp 5 Trillion
A Strategic Perspective
Matahari Department Store is the crown
jewel for PT. Matahari Putra Prima Tbk!!!
Beginning in 2008 we will further
dominate Indonesia with a major
expansion of Matahari Department
Stores!!!
A Strategic Perspective
INDONESIAN ECONOMY SHOWS PROMISING GROWTH
Real GDP forecast to
grow by 6% p.a. ..
Real GDP,
2007-12 (Rp T)
6,000
•+31
5,000
4,000
%
... while population is
growing at 1% per year ...
... resulting in increase
of GDP/capita of 25%
by 2012
Population,
2007-12 (M)
Real GDP/capita,
2007-12 (Rp M)
300
4,944
3,775
250
•+6
25
%
235
+25 %
248
20
200
150
2,000
100
1,000
50
5
0
0
0
2012
16
15
3,000
2007
20
10
2007
2012
2007
2012
Average income per capita projected to grow by 25% through 2012
Note: All figures in constant 2007 Rp
Source: EIU; BCG analysis
A Strategic Perspective
DEVELOPMENT OF MODERN RETAIL EXPECTED TO ACCELERATE
Share of modern retail to increase to 30% by 2012
Modern retail as % of total retail sales, 2004
%
90
South Korea
60
Projected
increase to 30%
of total retail
sales in 2012
Thailand
30
Hong Kong
Japan
Indonesia 2012
Vietnam
0
100
Taiwan
Malaysia
Singapore
China
India
Indonesia
1
1000
(1) Figure for 2007
Source: IBM consulting; Press search; BCG analysis
A Strategic Perspective
10000
100000
GDP per capita in US$ (2004)
Matahari Department Store
The Crown Jewel
Our number 1 strategy:
Grow Matahari Department Store Faster!!!
A Strategic Perspective
EXPAND MATAHARI STORE BASE MORE AGGRESSIVELY ...
Planned number of Matahari stores, 2007-2012
+58%
115
125
105
79
20071
85
95
Open 10 new
stores a year
starting 2008
2008
2009
2010
1. Figure end 2007 (excludes 2 Matahari stores that are converted to Parisian)
Source: Matahari Real Estate and Store Planning
A Strategic Perspective
2011
2012
... AND EXPAND GEOGRAPHICAL FOOTPRINT
THROUGHOUT INDONESIA
Existing stores
New stores in current cities
New stores in new cities
Potential future locations
Source: Matahari Real Estate and Store Planning
A Strategic Perspective
Matahari Department Stores Corporate Social
Responsibility
• Our success comes with a responsibility to be a role model in giving
back to the employees and the communities that support us
A Strategic Perspective
What Is Corporate Social Responsibility ?
Achieving commercial success in ways that
honor ethical values, respect people,
communities and the natural environment
A Strategic Perspective
Corporate Social Responsibility Divided into
Four Areas:
Work Place
–
How do we treat the people who work for
us?
Market Place
–
Good Governance practices
Code of ethics
Globally accepted accounting practices
Community
–
Seeing ourselves as a member of the
community rather than an outsider
Environment
–
Reduce the resources we use and waste
we produce
A Strategic Perspective
Benefits
A. Good reputation – attract the best people
B. Brand enhancement
C. Income appeal to investors and financial analysts
D. Increase sales and market share
A Strategic Perspective
Cost of Ignoring CSR
A. Risk of new business
B. Brand risk
C. Legal risk
A Strategic Perspective
Challenges
A. Choosing social issues
B. Selecting on initiative to address the issue
C. Developing and implementing program plans
D. Evaluation
A Strategic Perspective
Corporate Social Responsibility
Matahari 2006/2007
A Strategic Perspective
Matahari: Aid and Support on 2006 / 2007
Natural Disasters
1. Earthquake victims
2. Tsunami victims
3. Flood victims
A Strategic Perspective
June 2006, EARTHQUAKE
Matahari disbursed aid to help the earthquake victims with food,
blankets, medicine for more than 10,000 households.
A Strategic Perspective
February 2007, TSUNAMI
Together with Yayasan Obor Berkat Indonesia, Matahari
helped the victims of the tsunami
A Strategic Perspective
February 2007, FLOOD
Together with Yayasan Obor Berkat Indonesia, Matahari helped
the flood victims in Jakarta and greater Jakarta region
A Strategic Perspective
Matahari: Aid and Support on 2006 / 2007
Arts, Humanities and Education for the Nation’s Future
1. Arts programs
2. Sport events
3. Scholarships to employees and the less fortunate
4. Teachers in isolated areas
5. Loaning of associates to universities
A Strategic Perspective
August 2007, TEACHERS SUPPORT
In cooperation with Foreign Affairs Department, Matahari donated
special packages for teachers in isolated areas throughout
Indonesia
A Strategic Perspective
Matahari: Aid and Support on 2006 / 2007
Less Fortunate Members of the Community
1. Special Olympics
2. Orphanages
3. Blind and handicapped individuals
A Strategic Perspective
2006
IKM donation to Orphanage
A Strategic Perspective
August, 2006
Matahari donated Rp 100 million to Yayasan Putra Bahagia to
help the unfortunate children
A Strategic Perspective
2006
Donation to Orphanage
A Strategic Perspective
Employee Welfare
1.
Scholarship to employee
2.
Vocational study
3.
Spiritual responsibility; establishment praying place i.e
mosque
4.
Condolences contribution
5.
“Koperasi Karyawan”
- benefit of local loans to employee
- special allocation of emergency of employee
6.
Employee’s union – annual conference meeting
A Strategic Perspective
Employee voluntary blood donor for Indonesia
Red Cross
A Strategic Perspective
Employee spiritual responsibility
A Strategic Perspective
Matahari Soccer Team
A Strategic Perspective
Worked with Others to Achieve More
1.
Employees union
2.
Customer donations
3.
Matahari Suppliers Club
4.
Indonesia Retail Association
5.
Special Olympics
6.
Louis Braille Institution
7.
Organized Bazaars for funds
8.
Ministry of Foreign Affairs to provide aid
9.
UNICEF
A Strategic Perspective
September 2006
Through a trade-in program, Matahari collected more than
10,000 pairs of jeans which were donated to social institutions
in areas surrounding Matahari stores.
A Strategic Perspective
November 2006
Rp 4 billion was donated by Matahari in cooperation with Matahari
Suppliers Club (AMSC) to 33 social foundations, as part of the
“Matahari Charity Day”.
A Strategic Perspective
October 2007
Matahari in-cooperation with Dompet Dhuafa gathered funds to
help those in needs.
A Strategic Perspective
New Initiatives for 2008
Cause Marketing – Donate a portion of the profits of each
bra we sell to the Breast Cancer Council
Trade Ins – Encourage our customers to donate
uniforms/bags/shoes which will be donated to local
orphanages in return for discounts on new merchandise
Matching Donations – donations by our customers will be
matched by MDS and our suppliers
A Strategic Perspective
CSR is beyond the old philanthropy of the past “Donate to
good causes at the end of the year”
CSR is a year round responsibility that we accept for the
environment around us
CSR is the difference we make to the world and the
contributions to poverty reduction
A Strategic Perspective