Abstract
Retail industry is an industry whose business activities provide products in the form of goods and or services to individuals, themselves, families or households. In the past few years there have been many closures of retail outlets in Indonesia. In 2016 in global retail development, it was noted that Indonesia was included in the 5 most active retail countries as well as being among the 5 countries with the biggest sales in Asia. In recent years there have been many closures of retail outlets in Indonesia. The current retail condition in Indonesia faces many problems, one of which is the distortion of new income, namely retail that has no place or so-called electronic commerce (e-commerce). E-commerce involves buying and selling products (such as physical goods, digital products or services) that are transacted through computer networks.This study uses data from 23 companies to describe the condition of the retail business in Indonesia. Data collected from 2013 to 2017 and analyzed using panel data regression with three approaches Altman, Springate and Zmijewski. All companies experienced a decline in financial performance. The factors that influence the condition of financial distress are net profit margin, current ratio, size of firm and total asset turn over.
Highlights
Indonesia is a country that has great potential in business activities
Lotus and Matahari are closing some of their outlets to protect the company's cash. This was confirmed by the closure of all Debenhams outlets in early 2018. From this a number of questions were drawn up including: 1) what kind of characteristics and financial performance of companies included in the retail sector on the Indonesia Stock Exchange? 2) How financial distress condition of each retail company on the Indonesia Stock Exchange? 3) What factors influence the financial distress of retail companies listed on Indonesia Stock Exchange? Retail is an effort to break up the goods or products that are produced and distributed by the manufacturer to be consumed by customers in small quantities according to their needs
The growth of the retail industry in Indonesia is growing rapidly due to the growth that occurs in middle-class people who want to shop at supermarkets and department stores
Summary
Indonesia is a country that has great potential in business activities. This is based on the large population, according to a report from the Central Statistics Agency (2017) stating that the population of Indonesia there are 261.4 million people in Indonesia where from 2013 to 2017 increased by an average of 5.8 percent. Lotus and Matahari are closing some of their outlets to protect the company's cash This was confirmed by the closure of all Debenhams outlets in early 2018. From this a number of questions were drawn up including: 1) what kind of characteristics and financial performance of companies included in the retail sector on the Indonesia Stock Exchange? Retail is the business activities of selling goods or services to individuals for the purposes of self, family, or household (Maruf 2016)
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