Jakarta. Matahari Department Store, one of the largest retail operators, has announced a four-year partnership with the world's leading entertainment producer Walt Disney Company to feature Disney's exclusive products at its stores, in a bid to adapt to the digital-era market conditions.

"This collaboration will offer a new shopping experience that consumers cannot find online — experiencing the authentic Disney atmosphere and seeing directly the products that can be obtained only from offline stores," Christian Kurnia, merchandising, marketing and store operations director at Matahari, said during a press conference at the Fairmont Hotel in South Jakarta on Wednesday (11/10).

Through this partnership, Matahari outlets will have corners with Disney toys, clothes, shoes and household goods decorated with Disney, Marvel and Star Wars characters, sold at Rp 79,000 ($5.9) to Rp 250,000.

"It's affordable for Indonesia's big middle class," Christian said.

In the first half of the year, Matahari's year-on-year same store sales growth stood at only 8 percent, that compared with last year's 27.1 percent growth. According to Christian, the decline was due to the increasing competition between physical retailers and e-commerce players.

However, he expressed optimism that offline stores will still grow in the next few years, as the company's online sales record has been even less than that of its physical stores.

"Our online sales are growing, but thety're still relatively small," he said.

Matahari currently operates 155 outlets spread across the country, and plans to open three more by the end of the year.

Walt Disney Company Indonesia country manager Herry Salim said Indonesia is the largest Southeast Asian market for Disney, and Matahari will help it reach out to more fans.

"Between 2015 and 2017, Disney's business growth in Indonesia reached 200 percent ... For us this is an indicator to make Indonesia our priority," he said.

"We will try to combine the strength of Matahari in the local retail sector with the world-class experience offered by Disney."