Aeon in RM700mil expansion mode, going into smaller towns

KLANG: Japanese retailer Aeon Co (M) Bhd has set aside RM700mil this year to open three new Aeon outlets and two MaxValu stores as it boosts spending to expand its presence into smaller towns.
Of the three Aeon outlets, two of them will be part of new shopping centres in Bukit Mertajam, Penang and Taiping, Perak, which Aeon Co will operate. It will also be an anchor tenant in upcoming Quill City Mall in Kuala Lumpur.
The outlets would cost a combined RM450mil. Last year the company’s capital expenditure was RM500mil with one new store in Kulaijaya, Johor.
Executive director Poh Ying Loo said the company had yet to finalise the location for the two proposed MaxValu stores, which will cost about RM5mil each.
It will also use part of the planned capital spending to refurbish selected existing stores and plan future outlets.
He was speaking to reporters after the group’s 30th anniversary celebration here yesterday. Currently the general merchandise store and supermarket chain operator has 27 Aeon outlets and four MaxValu stores in Malaysia.
It was recently reported that it was aiming to expand into Kedah, Kelantan, Terengganu, Sabah and Sarawak five states over the next five years. Aeon Co is also exploring collaborations with Japanese food and lifestyle brands to introduce them to the Malaysian market this year.
On the rising cost of living, managing director Nur Qamarina Chew said Aeon Co had always adjusted its prices to stay attractive to consumers, offering discounts of up to 70%.
“So far we have cut prices for about 200 items and we’re looking to increase that for as many as 2,000 items this year,” she said. Aeon Co will be releasing its full year ending March 31, 2014 financial results next week.
On other plans, Poh added that the group had engaged local consultants to look into preparations for the Goods and Services Tax implementation next year.
“We have set up our project task team and hope to get things ready by year-end.”