JAKARTA – PT Platinum Wahab Nusantara Tbk (TGUK), the owner of beverages brand Teguk, had closed down over 100 of its outlets in 2024. The company now only retains 35 stores.

The management of TGUK mentioned that the close-down of stores resulted from inconducive market condition, especially for middle-low-income households.

“People’s purchasing power are extremely scarce, and the decrease has been apparent since Q1, Q2, and Q3,” added the management of TGUK during last week’s public expose.

On the other hand, the management of TGUK said that customers also detected higher price for online purchases. This factor is not only applicable to TGUK but also other players in food & beverages industry in Indonesia.

“This forces TGUK to carry out efficiency measures by closing down stores,” said the management.

According to IDNFinancials data, TGUK still reported owning 152 outlets at the end of 2023. The number of stores dropped to 83 as of June 2024, and even more in October 2024 to 35 stores.

Back during its initial public offering (IPO) in July 2023, TGUK managed to raise IDR 117.86 billion in the stock market. Approximately 60% of the funds were allocated for capital expenditure, while the remainder was channelled to working capital. (KR/ZH)