Public consumption tends to improve in April 2025. Inflation in Indonesia was at 1.95% YoY in April 2025, higher than the previous realization of 1.03% YoY in March 2025. This condition indicates that the public purchasing power tends to improve in April 2025.

Technological advances drive the digital transformation of retailers. From the company’s side, the digital transformation carried out has the potential to reach more consumers, especially in various regions that do not have physical outlets. We assess that this condition has the potential to positively impact the company’s performance in the long term.

Retailer store expansion still continues. This condition indicates that the retail sector still has great potential in the long term. The expansion has the potential to reach more consumers, which will positively impact the company’s growth in the long term.

The revenue of retailers in our coverage tends to be solid. Until 1Q25, the revenue performance of retail issuers was relatively increased compared to 1Q24, except for ERAA, which booked a revenue decrease of 4.6% YoY to IDR15.88 trillion in 1Q25.

Neutral rating on the Retailers Sector. With various catalysts, such as continued pressure on the lower middle class and mixed performance of retailers issuers in 1Q25, we give a Neutral rating on the retailers sector. Retailers issuers in our coverage are ERAA, with an estimated fair value of IDR555; AMRT, with an estimated fair value of IDR2,570; MIDI, with an estimated fair value of IDR428; and ACES, with an estimated fair value of IDR685.