Dutch-owned Makro Cash & Carry Distribution Sdn Bhd is strengthening its presence in the Malaysian retail market with a plan to open 10 new outlets in the next several years.

Makro managing director Anton van Gorp says there is still potential for the multinational company to open at least 10 more outlets in Malaysia.

Makro currently has eight outlets in Malaysia located at Shah Alam, Selayang, Cheras, Seremban, Seberang Perai, Penang, Johor Bahru and Ipoh. Makro has conducted a survey based on the concentration of its customers in areas that it has not reached, van Gorp says in a written reply to FinancialDaily.

Like earlier Makro outlets, the new stores would be “stand-alone” structures, built according to the specifications set by the authorities, van Gorp says.

However, he declined to reveal the total cost of investment for the expansion.

Makro’s expansion plan in Malaysia is in line with its expansion in other Asian countries.

In its 2002 annual report, Makro’s parent company, SHV Holdings NV, said there were 56 Makro outlets in Asia and it planned to open another 10 outlets this year.

In Thailand alone, there would be two new outlets this year in addition to 21 outlets at the end of 2002.

Following the collapse of Makro Taiwan early this year, SHV is also expanding into mainland China, with a plan to open up to 10 Makro outlets by 2010.

Van Gorp believes that as a cash and carry operator, Makro is unlikely to be affected by the government’s decision to curb the expansion of hypermarkets in three major cities and in areas with a low population density.

“We feel that there are still many areas where Makro’s presence will be welcomed by our customers, the small businesses and we are working with the government on our growth options in the area relating to the SMEs [small-and-medium enterprises],” he says.

On the company’s financials, van Gorp said Makro has been operationally profitable since its entry into Malaysia in 1993.
“As a company, apart from the last three years, Makro has also been profitable. Since the repositioning of the company in 2002, the results have also made a turn around. Makro expects to break even this year,” he says.

Van Gorp says the company expects a 10% growth in sales over 2002, in which its total sales amounted to RM706 million. This is RM66 million higher than the previous year.

On the company’s strategy, van Gorp says Makro will continue to be a niche player that focuses on its main customer group of small retailers, caterers and other professionals.

“We will look to improve our product range to cater to their requirements, especially in the catering segment,” he says. He adds that the company is still testing some new concepts for the Asian region before implementing them.

While other giant retailers such as Carrefour and Tesco allow its customers to pay with credit cards, Makro will continue to implement its cash-and-carry policy.

Makro does not accept any credit cards except those from Malayan Banking Bhd.

Van Gorp says there is no immediate plan to reverse this policy since it plays a part in keeping Makro’s cost of goods down by transferring the savings from banking transaction fees to its customers.

I don't like Macro at all.

Originally posted by ZaHiRnYa???

I don't like Macro at all.

Actually Makro is for small businesses......not for consumers like us. ;)

That's why they had this membership thingy (only available if you have a company to register with) and have no plastic bags as they expect people to buy in bulk. If you notice, their trolleys are much larger.

I still remember back in 1993 (yea...I've been a member since then), we had to travel all the way to Batu 3, Shah Alam to buy things. That Makro is the first in Malaysia.....so crowded then! :D

Originally posted by szehoong

Actually Makro is for small businesses......not for consumers like us. ;)

That's why they had this membership thingy (only available if you have a company to register with) and have no plastic bags as they expect people to buy in bulk. If you notice, their trolleys are much larger.

I still remember back in 1993 (yea...I've been a member since then), we had to travel all the way to Batu 3, Shah Alam to buy things. That Makro is the first in Malaysia.....so crowded then! :D

i think consumers go there and buy coz cheap. it is very troublesome lah, these membership things

Originally posted by TYW

i think consumers go there and buy coz cheap. it is very troublesome lah, these membership things

Actually everybody can become a member. There is no restriction for it. Like sze, I also happen to be a member. It is correct that Macro is mainly catered for small business so that they can buy in bulk. not like an ordinary consumer like you.

Due to the fact that the only credit card accepted at Macro is Maybank Macro card I can assure you that the average spending of this people is around RM50k per one time shopping. See how big is the different with the amount that we usually shop like at other hypermarket.

Still I don't like it though :D

Originally posted by ZaHiRnYa???

Actually everybody can become a member. There is no restriction for it. Like sze, I also happen to be a member. It is correct that Macro is mainly catered for small business so that they can buy in bulk. not like an ordinary consumer like you.

Due to the fact that the only credit card accepted at Macro is Maybank Macro card I can assure you that the average spending of this people is around RM50k per one time shopping. See how big is the different with the amount that we usually shop like at other hypermarket.

Still I don't like it though :D

he he.... i remembered the first time i went to makro (seberang prai) i cannot go in coz under age. i think now got no such things already right??

Originally posted by TYW

he he.... i remembered the first time i went to makro (seberang prai) i cannot go in coz under age. i think now got no such things already right??

Eh got age restriction ke? I have no idea about that. Pity la you kena tak restriction. Don't think they have it now though

Originally posted by TYW

he he.... i remembered the first time i went to makro (seberang prai) i cannot go in coz under age. i think now got no such things already right??

well....they have age restriction for those under 12 and it applies on all occasions last time. Then a few years back, they allow children in only on weekends......I am not too sure bout now.

Actually the only thing I like bout Makro is because there is one VERY near my house :D

Originally posted by ZaHiRnYa???

Actually everybody can become a member. There is no restriction for it. Like sze, I also happen to be a member. It is correct that Macro is mainly catered for small business so that they can buy in bulk. not like an ordinary consumer like you.

Due to the fact that the only credit card accepted at Macro is Maybank Macro card I can assure you that the average spending of this people is around RM50k per one time shopping. See how big is the different with the amount that we usually shop like at other hypermarket.

Still I don't like it though :D

oh....I din know now anyone can be member......cos last time only those from companies could apply. My Makro card has my dad's company printed on to the card. ;)

As for the Makro Maybank credit card, I wanted to apply for that but it seems that the Makro staffs have no idea bout it and Maybank credit card people also have no idea bout it also so in the end I;ve only got the normal Maybank card....... :rant:

Originally posted by szehoong

oh....I din know now anyone can be member......cos last time only those from companies could apply. My Makro card has my dad's company printed on to the card. ;)

As for the Makro Maybank credit card, I wanted to apply for that but it seems that the Makro staffs have no idea bout it and Maybank credit card people also have no idea bout it also so in the end I;ve only got the normal Maybank card....... :rant:

Everyone can become a member now. Probably they change their policy already.

As for the credit card...there is nothing more I can say :D Why don't you make a card conversion then...at least you will have a Maybank Macro card that can be used at Macro and other places as well.

Originally posted by szehoong

oh....I din know now anyone can be member......cos last time only those from companies could apply. My Makro card has my dad's company printed on to the card. ;)

As for the Makro Maybank credit card, I wanted to apply for that but it seems that the Makro staffs have no idea bout it and Maybank credit card people also have no idea bout it also so in the end I;ve only got the normal Maybank card....... :rant:

i dunno why but my aunt have 2 membership cards. last time i went to the one in penang with her using that card.

Originally posted by ZaHiRnYa???

Everyone can become a member now. Probably they change their policy already.

As for the credit card...there is nothing more I can say :D Why don't you make a card conversion then...at least you will have a Maybank Macro card that can be used at Macro and other places as well.

oh.....I dunno can convert one woh.....hmmm......I'll call cust serv later to check on this but I've got bad experience with the Maybank call centre last month.......they bluff me!!! :bleep:

....and subsequently because of that my card got 'telan' into an ATM machine. But I must really thank the Midvalley branch officer for her help in getting back the card to me! :)

Originally posted by szehoong

oh.....I dunno can convert one woh.....hmmm......I'll call cust serv later to check on this but I've got bad experience with the Maybank call centre last month.......they bluff me!!! :bleep:

....and subsequently because of that my card got 'telan' into an ATM machine. But I must really thank the Midvalley branch officer for her help in getting back the card to me! :)

Ha.ha....they bluff you? What issue was that?

Originally posted by ZaHiRnYa???

Ha.ha....they bluff you? What issue was that?

They told me that my card was activated. So I just slot it into the ATM to check some details and then the card got telan! So embarrasing.....so many people lining up looking at this guy which credit card got telan........ :cry:

The best part is that it is just days away before I went to Bangkok.......and I needed the card desperately! :rant:

Originally posted by szehoong

They told me that my card was activated. So I just slot it into the ATM to check some details and then the card got telan! So embarrasing.....so many people lining up looking at this guy which credit card got telan........ :cry:

The best part is that it is just days away before I went to Bangkok.......and I needed the card desperately! :rant:

wah, kesian:D

Originally posted by szehoong

They told me that my card was activated. So I just slot it into the ATM to check some details and then the card got telan! So embarrasing.....so many people lining up looking at this guy which credit card got telan........ :cry:


What do you mean you card was activated. You used the chip based card kan...no need to activated la unless you key in the wrong pin no, of course they have to activate it again.

Originally posted by ZaHiRnYa???

What do you mean you card was activated. You used the chip based card kan...no need to activated la unless you key in the wrong pin no, of course they have to activate it again.

I am talkin bout credit card here lah not ATM card lah! :bash:

When the credit card was delivered to you or that when you collect it, the card are useless as it is not activated for use. To activate, you need to call the call centre and after verification, your card is activated.

I did just that and was told that the card was activated. Unfortunately, my card got telan by ATM machine when I want to check something about the card (note: you could check your credit card limit, balance etc... etc..... using any Maybank ATM machines). The reason ahy I've checked is because I wanted to know what is wrong because I tried using it but can't earlier on. :rant:

After getting the card back at the last minute........I called again to confirm and this time I double-checked to confirm the activation......now I have a phobia of inserting any cards into an ATM machine! :D

Originally posted by szehoong

I am talkin bout credit card here lah not ATM card lah! :bash:


La say la credit card. Ha..ha....there is something funny about you being phobia to insert a card into the atm slot.

Actually, they did give you the correct information, just that probably they miss one thing to tell you which i will not going to say it here. ask me when we meet this monday. :D

Originally posted by ZaHiRnYa???

La say la credit card. Ha..ha....there is something funny about you being phobia to insert a card into the atm slot.

Actually, they did give you the correct information, just that probably they miss one thing to tell you which i will not going to say it here. ask me when we meet this monday. :D

aiks...you read properly lah my last few posts! :bash:

oky dokey......would ask ya bout the card this Monday....if I forget please remind me ya! :D

Actually the 'phobia' is a joke lah.....if I had a phobia I would be able to take any money out then and I'll be broke! :lol:

Tesco plans RM140mil expansion this year



TESCO Stores (M) Sdn Bhd plans to invest RM140mil for its expansion this year, head of corporate affairs, Azlam Shah Alias said.

The expansion would include a new store in Penang, which was expected to cost about RM50mil to RM70mil, he told Bernama after the presentation of Tesco Values Award to outstanding small- and medium-sized enterprise suppliers in Puchong, Selangor, yesterday.

Currently, the company operates 5 outlets, located in Puchong, Bukit Tinggi in Klang, Damansara, Malacca and Sungai Petani in Kedah.

Azlam said that Tesco planned to open up to 10 outlets nationwide in the next 5 years.

The government had approved 7 outlets, he added. Tesco Stores carries a total of 88,000 products of which 95% are sourced locally. – Bernama

Originally posted by szehoong

[b]Currently, the company operates 5 outlets, located in Puchong, Bukit Tinggi in Klang, Damansara, Malacca and Sungai Petani in Kedah.


Wah...Sungai Petani got TESCO :? I didn't know that. When did they open it there ?

I've seen the project in Johor Bahru too - or they've compleated.


TESCO Plaza Angsana, Tampoi Town Center, Johor Bahru

http://www.veritas.com.my/port_varc_retail/retail_81tescojo_big.gif http://www.veritas.com.my/port_varc_retail/retail_82tescojo_big.gif

http://www.veritas.com.my/port_varc_retail/retail_8tescojo.htm

more retail...
http://www.veritas.com.my/portfolio_architects_retail.htm

here r some Sungai Petani's TESCO pics...nothing special compare to other malls:)
http://gallery.cybertarp.com/albums/userpics/10512/IMGP0930.jpg
http://gallery.cybertarp.com/albums/userpics/10512/IMGP0931.jpg

Last pic
http://gallery.cybertarp.com/albums/userpics/10512/IMGP0929.jpg

If i'm not mistaken Penang's TESCO have three stories;)

Originally posted by Pablo

If i'm not mistaken Penang's TESCO have three stories;)

yeah, 3 stories, it is on the board in the pic u took

Originally posted by szehoong

oh.....I dunno can convert one woh.....hmmm......I'll call cust serv later to check on this but I've got bad experience with the Maybank call centre last month.......they bluff me!!! :bleep:



So..did you convert your Maybank credit card into the Macro one? Why don't you apply for the Maybank AMEX then. It is a good card though :D

SHAH ALAM March 1 - Makro Cash and Carry Distribution Sdn Bhd (Makro) expects to achieve 10 percent in sales growth by the end of this year.

Close to 80 percent of Makro sales are from its outlets, its managing director, Anton Van Gorp told reporters at a media briefing here Monday.

He said to boost further sales, it would be organising Hotel, Restaurant and Catering (Horeca) Extravaganza 2004.

The three-day event starting from March 23-25 will be held at the Melawati Stadium in Shah Alam.

This will be held specially for its valued customers, suppliers, business partners and those involved in Horeca industry with the aim of reinforcing its support for the group and to better serve its customers, Gorp said.

He said the Horeca group contributed about 15 percent of Makro's sales.

In the last two years, Makro had focused on the small and medium scale industries.

When asked about Makro's competitors, Gorp said they included the wholesale markets and hypermarkets.

"Our advantage is that we offer everything under one roof and we provide a favourable and convenient shopping environment," he added.

He said Makro Sdn Bhd also planned to open a new store at the end of this year at a location which has yet to be decided.

"Makro store operation is worldwide found also in Thailand, the Philippines, China, Indonesia, Argentina, and Colombia," he said.

Makro has a wide clientele and it expects 40,000 visitors for the extravaganza.

It has half a million members. 52,000 of members are from Horeca.

So far some 60 exhibitors have confirmed participation.

"We are still receiving bookings at the moment," Gorp said.

He said Horeca 2004 will be the platform and focal point for buyers, and decision-makers to meet with vendors and suppliers showcasing their latest products, technology and services.

There will be some activities which include the "Halal Certification" seminar, Nasi Goreng cooking competition, and `karaoke' performance.


hmmmmm....I wonder where will be the new store is?????

What do you think?????


Tesco backs down on 24hr-ops for Mutiara D'sara

By Reese Loh, 11.45pm

Tesco Stores (M) Sdn Bhd has backed down from its decision to operate its Mutiara Damansara store round-the-clock scheduled to begin yesterday.

A check with the Mutiara Damansara store showed that the store was to be open only until midnight, and not as planned for 24 hours. Tesco Puchong continues to operate round-the-clock since it started the move last week.

Tesco head of corporate affairs Azlam Alias said the company would wait for clearance from the Domestic Trade and Consumer Affairs ministry before making any further decision on the matter.

He said the company had already asked for an appointment with ministry officials to discuss the issue. “We are only trying to provide better shopping hours for all,” Azlam told FinancialDaily.

Tesco has received sharp criticisms from the ministry on its round-the-clock plans in view of its purported impact on small traders.

Azlam said the 24-hour shopping option would benefit working couples, decrease congestions and provide more employment opportunities in the market.

Tesco to meet ministry officials on 24-hr ops


By Reese Loh, 8.43am

Sime Darby Bhd associated company Tesco Stores (M) Sdn Bhd has requested for a meeting with the Domestic Trade and Consumer Affairs Ministry, which opposes the hypermarket’s plan to operate round-the-clock.

A Tesco Malaysia official tells FinancialDaily that the company is hoping for a meeting with ministry officials early this week, subject to their availability, to resolve the matter.

The hypermarket last week started 24-hour operations, beginning with its Puchong store, as part of its plans to do so for its Klang Valley stores. The plan is scheduled to take effect today for its Mutiara Damansara store and on March 22 for the Klang outlet.

“At the time when we started operations (24 hours) in our Puchong store, we thought that we were obeying the law in letter and spirit,” says the Tesco official. It had obtained the Selangor state government’s approval to do so.

“We do understand the ministry’s concerns and we will further discuss the matter before making further decisions,” the official tells FinancialDaily.

Tesco is the first hypermarket in the country to operate round-the-clock, in response to market feedback. It is not known if the management will go ahead with the plan, but there has been no decision by the hypermarket to stop the 24-hour operations in Puchong.

Tesco Malaysia’s 24-hour move has met with criticism from the ministry on concerns that it will affect smaller traders. The ministry has said it is in contravention of a government policy to protect the neighbourhood “mom-and-pop” outlets.

The minister, Datuk Jamaluddin Jarjis, last week said he may allow some hypermarkets to open 24 hours depending on the location and circumstances. He also said he would be calling hypermarkets to request them to operate normal hours.

I like the idea for the hypermarket to operate 24 hours. The logic behind the idea where it will be ideal for some people to shop during that time due to their working timetable or don't want to stuck in traffic jam is acceptable enough. I don't think due to the working hour operation it will hurt the small and medium business. If consumer don't want to shop during nite time, then day time will always offer them plenty of choices.

I mean it just plain simple. Choices been offer to customer who not been able to do a normal house shopping during normal hours. ;)

Round-the-clock shopping, anyone?



http://biz.thestar.com.my/archives/2004/3/27/bizweek/p1bizweekCover.jpg


By TEE LIN SAY



TWO years ago, Britain's largest grocer Tesco Plc set up shop in Malaysia. Since then, Tesco Malaysia Sdn Bhd – 30 per cent owned by Sime Darby Bhd and the remaining held by the parent company Tesco – has ploughed RM300 million worth of investments into the country.

Having directly tapped the local retailers' psyche, Tesco Malaysia expressed plans for three outlets in the Klang Valley to operate round the clock. One of them, in Puchong, already went 24 hours in early March.

The plan got a major dousing of cold water from the Domestic Trade and Consumers Affairs Ministry as it was deemed that such a move would jeopardise the livelihood of small traders.

This is not the first time that Tesco's ambitions, along with other foreign hypermarkets, have faced hurdles. In mid-February, it was reported that the Government might impose a quota on goods displayed by hypermarkets to ensure that local products get prominent space. On the same day, it was announced that the hypermarkets would not be allowed to operate in towns with less than 350,000 people. Also, the issuing of licences for new hypermarkets in the Klang Valley, Penang and Johor, it was reported, would be restricted for the next five years.

Market observers say there is much ado about nothing. The world of retailing rests in the hands of the consumers. “So, let them decide,” says the observer.

A frustrated shopper cum hypermarket fan moans: “If Malaysia really wants to start competing on a level playing field, it should really start lifting these restrictions instead of imposing more. We're just putting off foreign investors.”

CCN Consulting Sdn Bhd director Jimmy Chiam says the worry that Tesco's 24-hour move is a threat to mom and pop provision shops is unfounded. “First of all, these small traders don’t open 24 hours a day. Secondly, the 24-hour operation caters to an entirely different market. It is for those who cannot shop during the day, say for example those who work in factories and shifts.”

He says it is unlikely that shoppers, who generally purchase their groceries in the day, will start to do it at night.




http://biz.thestar.com.my/archives/2004/3/27/bizweek/p12azlam.jpg

Azlam Alias





The retail analyst agrees. “Now, only 7-Eleven operates 24 hours. But then again, hypermarkets do not take away their business because 7-Eleven caters only to impulse shoppers,”

But Tesco's move to open round the clock follows some deep thinking and major homework. It had appointed six local universities to perform 10 case studies on the impact of such operations on small traders, and the feedback from the research study showed minimal impact.

If the grocer were not convinced of the commercial viability of opening 24 hours, it would not have increased its manpower in the Puchong outlet by 7 per cent, resulting in a 15 per cent increase in operational costs.

BizWeek spoke to Tesco Malaysia's head of corporate affairs Azlam Alias to explain the rationale of the retailer's latest plan, among other things. Below are excerpts:

BizWeek: Do you agree that 24-hour hypermarkets are detrimental to the livelihood of small traders?

Tesco: From past studies, we know that mom and pop shops are well aware that there is a different target market for their stores and hypermarkets. The small traders view each other as the main competitors, instead of hypermarkets. By opening 24 hours, Tesco provides them with an option in case they need alternative suppliers; now, they can stock up anytime that is convenient to them.

So, do you agree with the move by the Domestic Trade and Consumer Affairs Ministry?

Definitely, it would have its own reasons, which we are not in a position to speculate on. We hope that the ministry would listen to our side of the story, so that we can come up with a win-win situation for all parties.




http://biz.thestar.com.my/archives/2004/3/27/bizweek/p12Jimmy.jpg

Jimmy Chiam




What if you don't get your way?

We really hope that it would not come to that! We hope that the ministry will understand that we are only responding to our customers’ request and we are trying to give the consumers what they want.

If you are allowed to do that, you would certainly have an edge over your competitors.

As a business, we are not constantly looking over our shoulders ... at our competitors. We believe that the pie is big enough for everyone and each retailer has its own target market. Our studies as well as customer feedback show that 24-hour operations are what they want, and this decision is purely customer centric. It’s also a reflection of Tesco’s values, which is to be energetic, innovative and first for customers and “No one tries harder for customers.”

The proponents of late shopping say that it will lessen traffic congestion, and night shopping is less stressful. Is that partly the reason for going round the clock?

Those are some of the reasons. Round-the-clock shopping would lessen traffic congestion, something that residents in the surrounding locality (of our stores) appreciate. This is because there would no longer be time stress and customers can shop for a variety of cheap, quality products in a safe and conducive environment.

We also took into consideration that there are many people who work in shifts, such as factory workers and those in the hospitality industry. I think that the 24-hour operation would be very useful to these customers. Besides that, most families nowadays are dual income, they do not have time to shop. If they can shop at anytime of the day or night, it does not matter what time they leave the office; they can still complete the week’s shopping and spend quality time at home with the children during the weekend.

What was the biggest motivation of going 24 hours?

The decision to observe all-day operating hours is a direct result of listening to and acting on customers’ feedback. The new opening hours will cater to individuals with different lifestyles across the Klang Valley. This is another first in the retail industry after Tesco introduced the highly successful midnight shopping last year.




http://biz.thestar.com.my/archives/2004/3/27/bizweek/p12tesco.jpg



Tesco PLC operates 24 hours in Britain and elsewhere. How is the business faring in these countries?

In Tesco's international businesses in various countries, we have found that 24-hour shopping has been extremely well received due to the various benefits. The majority of Tesco stores in Britain, Europe, Taiwan and South Korea operate round the clock. Like the Klang Valley, the districts in which we offer 24-hour shopping are major arteries in the respective countries. Our 24-hour shopping overseas is very successful and has been well received, as customers in these bustling areas have different lifestyles which demands that we offer them that option.

Studies by some local universities have shown that Tesco's 24-hour business has minimal impact on small traders. Comment please.

We have completely different target markets. People who shop in hypermarkets tend to make planned purchases. They visit our store monthly or maybe weekly to stock up for the whole family’s needs. One would not enter a hypermarket just to get a newspaper or a carton of milk. Small traders’ customers, on the other hand, tend to be impulsive shoppers who want to get a few items. They want to park right in front of the shop, pop in to get their items and go off.

Do you feel that the consumer market is going that way (24-hour outlets). Do you feel it is a matter of time before your other competitors follow suit?

Our customers have told us that they want 24-hour shopping, and this is what we are offering them. This is a customer centric decision and I cannot comment on what our competitors would do.

Is Tesco's existence a direct threat to small traders?

I think we complement each other. Small businesses tend to have more personalised service. They also tend to be family run, hence it would not be viable for them to open 24 hours due to staffing problems. A lot of commitment, planning and resources have been invested into the 24-hour operations. This is also one way that we are fulfilling our promise to bring our global retail experience and expertise into the local retail industry.

What are the benefits of moving 24 hours?

Besides giving customers the option of being able to shop at anytime of the day, thus removing the time stress, there are numerous other benefits. We foresee that job opportunities for part-time workers would be good for the local community and economy.

We actually have many customers who are small traders. By opening 24 hours, Tesco provides them with an option in case they need alternative suppliers.

What else does Tesco plan to do?

Traditionally, Tesco has focused on developing strong local supplier networks throughout our global operations. We need to open more stores to get the economy of scale that would make sense for us to continue our strong SME development programme. We are the only hypermarket retailer in Malaysia with a strong, sustained SME development plan. As of December 2003, Tesco has listed more than 50 SMEs supplying at least 300 product lines. Eighteen of 47 food-based companies under Smidec-assisted programmes achieved sales exceeding RM4 million per year.

In February this year, we had the first ever Tesco Malaysia SME Appreciation Awards, graced by the British Minister for Small Business, Nigel Griffiths, where we presented awards to seven of our outstanding SMEs.

What we have done, and what we are doing now, is in line with the government aspiration to nurture local small and medium enterprises to achieve international standards. This is the way we always do business, even in other countries.

How has Tesco fared so far in Malaysia?

We are very happy with our operations in Malaysia, and we view it as a long-term investment. Last year, Tesco Malaysia was awarded the BMCC-JPA (British Malaysia Chamber of Commerce and the Malaysian Public Services Department) Best Company Award.

We have a strategic alliance with local conglomerate Sime Darby which holds 30 per cent of the total shares. We plan to divest the shares in 2007, with Sime Darby holding 49 per cent of the shares, thus making us the only major hypermarket retailer with such a significant local content.

What the rivals say about round-the-clock-shopping




BIZWEEK contacted some of the major hypermarkets to find out whether any of them planned to go 24 hours. Dairy Farm Giant Retail Sdn Bhd and Jaya Jusco Stores Bhd did not reply. But sources within both companies indicate that there are no plans to go 24 hours.

Nonetheless, these hypermarkets and retailers are certainly keen to find out whether the government would allow 24-hour grocery shopping.

A spokesperson from Carrefour Malaysia says the retailer has no plans to do so currently. He, however, admits that “if that is the way the market is heading, we have no choice as there is competition to consider.” Carrefour has operated until midnight, but only on a promotional basis, for example during festive seasons.

“This is to make things more convenient for our customers to do their last minute shopping. For example, during Carrefour's 35th and 36th anniversary, we had a 36-hour sale, but that was for a special purpose. We don't do it on a regular basis,” she says.

The Carrefour spokesperson points out that the crowd “tends to thin out as the night stretches.”

“For Carrefour, we place a lot of emphasis on 'Lowest price'. Therefore, we would have to consider things like incurring extra cost and expenditure. We would have to think about stepping up on customer and staff security, should there be more shifts, among other things,” she explains.

Apart from that, the operating cost for hypermarkets and small retailers are also very much different. Hypermarkets have much higher fixed cost, and their margins might also be lower.

“The concept is simply not the same. Malaysians love shopping. Going to the hypermarket is more of an outing by the family together. It is not merely to run in and get a quick item. In hypermarkets like Carrefour, you have fast food outlets and post offices to serve the additional needs of customers,” says the retail consultant.

I prefer Carrefour than TESCO:)

On the same day, it was announced that the hypermarkets would not be allowed to operate in towns with less than 350,000 people. Also, the issuing of licences for new hypermarkets in the Klang Valley, Penang and Johor, it was reported, would be restricted for the next five years.

no TESCO some time soon??

i saw Penang's TESCO rendering in an ad in the star yesterday. quite cool. it seems like everything is going fine??

I can see how it might make sense to open a 24hr supermarket...but a 24hr hypermarket?? Wow...that's a lota space open to cater to not a lota people. Imgaine, minimum 20 employees on graveyard shift plus cost of air-con, lighting etc....wonder whether that makes financial sense.....but still, Ithink authorities should allow it...let the public give their own verdict....just dun allow it too near residential areas. I would like to see 24hr pharmacies personally.....

I can see how it might make sense to open a 24hr supermarket...but a 24hr hypermarket?? Wow...that's a lota space open to cater to not a lota people. Imgaine, minimum 20 employees on graveyard shift plus cost of air-con, lighting etc....wonder whether that makes financial sense.....but still, Ithink authorities should allow it...let the public give their own verdict....just dun allow it too near residential areas. I would like to see 24hr pharmacies personally.....

oh......I was there after midnight on Friday and I must say that there are lotsa people there ;)

Currently the only one operational is in Puchong and being in a quite centrally located area, it serves quite a large population. Carrefour in fact did experimented with those '36hours shopping' carnival before and my friend whom went there at 3am told me that there is hardly any spaces to park their car :D ......maybe that's because it is a once in a blue moon thing but with Tesco opened 24hrs for almost a month already......I dun see the crowd dying down. :)

Malaysians are night creatures! :D

oh......I was there after midnight on Friday and I must say that there are lotsa people there ;)

Currently the only one operational is in Puchong and being in a quite centrally located area, it serves quite a large population. Carrefour in fact did experimented with those '36hours shopping' carnival before and my friend whom went there at 3am told me that there is hardly any spaces to park their car :D ......maybe that's because it is a once in a blue moon thing but with Tesco opened 24hrs for almost a month already......I dun see the crowd dying down. :)

Malaysians are night creatures! :D

Wow...I stand corrected then. Should've known....give Malaysians half a chance and they won't go home to sleep...HAHAHAHHA

Wow...I stand corrected then. Should've known....give Malaysians half a chance and they won't go home to sleep...HAHAHAHHA

yea....when you're back, you should check out the various 24hrs food centres around Klang Valley.......even on weeknights.....it is brimming with people well into midnight! :D

And given Tesco Puchong's location to about a dozen of these mini food centres (which are already famous many years before Tesco's opening), I am not surprised that they are enjoying a high turnout of shoppers. After shopping can makan mah! :D

No more 24 hours for hypermarkets




KUALA LUMPUR: Hypermarkets are no longer allowed to operate 24 hours with immediate effect, said Domestic Trade and Consumer Affairs Minister Datuk Mohd Shafie Apdal.

“The ruling is necessary to protect small industries, market traders and grocery shop owners who are losing out because of the 24-hour operation by hypermarkets.

“We have received complaints from the Entrepreneur Development and Co-operatives Ministry and small businesses regarding this,” Shafie said at the post-Cabinet press conference in his office here yesterday.

Shafie said his ministry had monitored the situation and conducted studies since 2002 on the effect of hypermarkets on local traders before deciding on the regulation.

He said all hypermarkets would operate from 10am to 10pm on weekdays and from 10am to midnight or 1am on weekends.

“It's sufficient that they are already operating 365 days a year,'' he said.

Shafie said it was up to the local authorities to ensure that the hypermarkets adhered to the new ruling.

On the increase in the price of dressed chicken to RM4.95per kilo, Shafie said this was attributed to the higher cost of animal feed.

I simply think it is just a stupid decision.

I simply think it is just a stupid decision.

yeah, idoitic!

Hmmm...what to do. Now back to reality check la. Going back to 7 Eleven in the early hours of the morning :)

I think Malaysia government should protect the local market such as Minimarket, Retail shop and etc...
If i'm not mistaken, there a heap of minimarket are now closing down..... The worst things are,,, most of the money that u spent to tesco...now 60% go to UK......... n the local market in malaysia become jobless..... DO u agree...

I think malaysia should open more local brand Hypermarket such as Giant... Y not malaysia's hypermarket open around the world.... :cheers:

I think Malaysia government should protect the local market such as Minimarket, Retail shop and etc...
If i'm not mistaken, there a heap of minimarket are now closing down..... The worst things are,,, most of the money that u spent to tesco...now 60% go to UK......... n the local market in malaysia become jobless..... DO u agree...

I think malaysia should open more local brand Hypermarket such as Giant... Y not malaysia's hypermarket open around the world.... :cheers:

Don't you think that is the price one has to pay in the name of open global market competition? :)

The fact that the local brand hypermarket can open around the world is a brilliant idea, but then they must survive in their own soil first. I don't have nothing against Giant hypermarket personally. But for haven sake, I do hope that the management will be able to do something bout its cashier personnel especially the one in Setiawangsa supermarket. Didn't wear a proper working cloth! Never smile! and put all your thing inside the plastic bag with a BANG!!! sound. Kind of that they are force to do it. The working altitude is just not there. It just irritating.

Maybe i could understand what u mean... "Quality is the Priority" For example: Like Malaysian cars vs Japanese cars...... :) ..

Maybe i could understand what u mean... "Quality is the Priority" For example: Like Malaysian cars vs Japanese cars...... :) ..

Ha..ha. Maybe. I donno. As a shift worker I do think that the 24 hour opening of any hypermarket is a good idea. Seriously TESCO must done their homework first before coming up with the idea of 24 hour operation. Looking at the responde that they recieved since they did that thing back in Puchong, I think the market for that is always there especially for people who have a totally different working hours from the rest. Local hypermarket also have the same ability...it just so happen that a foreign hypermarket start the whole thing first and local think that it will hurt them.

I wonder if GIANT come out with the idea and materialise it first.. :)
Nonetheless, now back to the normal routine...mamak stall in the middle of the nite ;)

Sunday April 18, 2004

24-hour hypermarkets serving the community

RIZNAL could not have expressed it better in his letter, “Ridiculous to restrict opening hours of hypermarkets” (Sunday Star, April 11).

I had been so proudly telling my friends in Britain that Malaysia has finally caught up with them by having 24-hour hypermarkets. Little did I know the joy would be short-lived.

As always, we have to be protected.

As always, the authorities claim to know what is best for us, and 24-hour hypermarkets do not make their list.

I believe the cost of running a 24-hour hypermarket is not low. On top of high overheads, most people just do not do their grocery shopping in the wee hours of the morning.

The hypermarkets are doing this at their own expense. They should, in fact, be viewed as doing the community a good service!

Please let Malaysians choose.

KAREN
Subang Jaya, Selangor

Penang TESCO..
http://img39.photobucket.com/albums/v121/PabloFa/DSC00007.jpg

wow! looks like they're building quite fast. the whole thing wasn' there last time

wow! looks like they're building quite fast. the whole thing wasn' there last time

Yeah...and it is bigger than what i saw last time.. :)

Yeah...and it is bigger than what i saw last time.. :)

i should have kept the rendering of TESCO. it was on the newspapaers and small, so i didn't keep it.

BTW, have any pics of e-gate??

i should have kept the rendering of TESCO. it was on the newspapaers and small, so i didn't keep it.

BTW, have any pics of e-gate??

Yupe..will post later..i think they r now building the second or the third floor of it..E-gate is quite big too :)

Yupe..will post later..i think they r now building the second or the third floor of it..E-gate is quite big too :)

actually TESCO looks small in yr pic. hope it is much bigger in real life:D

i had no idea Tesco's went overseas!

hahaha.. omg Tesco?? in UK Tesco is common supermarket lahhh! as common as a minimarket in My! :crazy:.. i'm sure the My one will be high-budget and stylish, just bcoz its "from UK" :D.. better to keep the local Market open 24 hrs rather than hand it to sum B-rated UK co.

i'm sure the My one will be high-budget and stylish, just bcoz its "from UK" :D..

What made you think so? Then I guess Carrefour would then be more stylish because it's "from France" :laugh:
FYI, everyone is aware that it's common in the UK and the pricing here in Malaysia targets the lower income group. ;)

hahaha.. omg Tesco?? in UK Tesco is common supermarket lahhh! as common as a minimarket in My! :crazy:.. i'm sure the My one will be high-budget and stylish, just bcoz its "from UK" :D.. better to keep the local Market open 24 hrs rather than hand it to sum B-rated UK co.


The problem is that no local minimarts would wanna opened for 24hrs as most are family businesses and are very small thus making it non-viable. ANyway I do realised that Tescos in Malaysia is huge and nice but they are not 'stylish' in anyway and like Baq said - these hypermarts targets the lower income group and the budget-councious. In fact, local minimarts sells more expensive stuffs! :D

They've started the ground work for the Ipoh TESCO as well.The site is situated just next to JUSCO.Guess where TESCO targets areas which most JUSCOs are situated for some obvious reason.Wonder y?

They've started the ground work for the Ipoh TESCO as well.The site is situated just next to JUSCO.Guess where TESCO targets areas which most JUSCOs are situated for some obvious reason.Wonder y?

Is it. I didn't realised that. The one that I noticed so far will be...hmm...the one in Puchong only.

Btw...good news for Ipoh. :)

They've started the ground work for the Ipoh TESCO as well.The site is situated just next to JUSCO.Guess where TESCO targets areas which most JUSCOs are situated for some obvious reason.Wonder y?




hmmm......the one in Puchong yeslah.....but the Tesco in Melaka and Klang are kinda far from Jusco mah. Maybe the Ipoh one is just a coincident ;)

Another which is kinda near but won't be affected much would be the Tesco at Mutiara Damansara ......the nearest Jusco there would be at One Utama ;)

Does this have anything to do with the real TESCO???
it is located on the ground floor of Kingfisher Series
http://www.xpphotoalbum.com/data/500/6619Kingfisher_Series_1_.jpeg?2798

^^^ I dun think so as the typeface isn't the same. And Tesco isn't a pasar mini and it would never be one :D

haha! how could they get away with it? maybe that small notice explains something :D

http://www003.upp.so-net.ne.jp/cuti/images/Malaysia/EndahRia/carrefour.jpg

http://www003.upp.so-net.ne.jp/cuti/images/Malaysia/EndahRia/carrefour.jpg

where's that?? japan??:D

where's that?? japan??:D


Got Japanese means Japan meh? :D

Got Japanese means Japan meh? :D

i dunno where it is mah:D

i dunno where it is mah:D


hehe.....this is Endah Parade at Sri Petaling, KL. It is just next to our National Sports Complex ;)

hehe.....this is Endah Parade at Sri Petaling, KL. It is just next to our National Sports Complex ;)

ic...thanks!

Pablo, is this the one you said you've been to??

I think Pablo cannot see the pic lah :D

where's that?? japan??:D

:lol: :lol: :lol:

I think Pablo cannot see the pic lah :D

why?? cock eye??