TESCO, MAKRO and other hypermarts
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.
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.