HYPERMARKETS in Malaysia

[rizalhakim]

Tesco to invest RM800m in 11 new stores
By Vasantha Ganesan
Published: 2008/02/27




Apart from the RM800 million investment, another RM100 million will be for the opening of a distribution centre in Bukit Beruntung, Selangor


BRITISH retailer Tesco Stores (M) Sdn Bhd will invest RM800 million within the next 12 months as it opens 11 stores, bringing the total number of Tesco stores to 31 and possibly over RM3 billion in sales.

The planned expansion, growth in like-for-like sales coupled with a strong consumer friendly pricing policy, is expected to help sales for the year ending February 28 2009 grow by not less than 30 per cent.

"We are currently constructing eight stores and we have plans to develop a further three stores, hopefully within the next 12 months. We are also building a second distribution centre for our ambient products," chief executive officer Chris Bush said.

Bush said Tesco's growth in Malaysia, in terms of expansion and sales, is one of the biggest markets outside of the UK.

"We ended 2006/2007 (February 2007) with RM1.7 billion in sales. In the current year (ending February 29 2008) we expect it to be significant, at around 50 per cent ... and we will be disappointed if we do not grow by at least 30 per cent in the coming year (ending February 2009)," he said.

Tesco, which opened its first Malaysian hypermarket in 2002, will also post its maiden profit in the current year ending February 2008.

Apart from the RM800 million investment, another RM100 million will be for the opening of a distribution centre. The investments will come from its 15-year-tenure RM3.5 billion bond sale.

"RM100 million will be for the distribution centre to be located in Bukit Beruntung," Bush said.

Two of the scheduled 11 stores - in Johor Baru and Prai - are Makro outlets which are being renovated and converted into Tesco Extra outlets.

New outlets are also scheduled for Mergong, Kedah, Kampar and South Ipoh in Perak, Desa Tebrau and Setia Alam in Johor and Semenyih in Selangor.

Bush, who was speaking to reporters yesterday to announce Tesco's price commitment for the next 12 months, said it has slashed RM20 million off the price of 500 products. The price cuts range from 5-41 per cent.

Tesco, which initiated two other price cuts in 2006 and 2007, investing RM6 million and RM15 million respectively, is this time taking its pledge a little further.

It announced that 50 basic everyday staples, which are its best-selling lines across fresh and grocery including oil, sugar, flour and rice will not be beaten on price.

Tesco will refund twice the difference if any of the 50 products is found to be cheaper elsewhere.

Tesco in Malaysia, a 70-30 joint venture between Tesco Plc and Sime Darby Bhd, employs 7,000 people at its 20 outlets and is set to employ another 5,200 people in the next year as its expands.

Going forward, Bush expects Tesco to invest a further RM500 million to RM600 million for openings in the 2009/2010 financial year.

[Tulsa]

By Vasantha Ganesan and Adeline Paul Raj
Published: 2008/02/11 (NST)

Most consumers have not benefited from higher salaries and they have been cautious in their spending because they expect the cost of living to rise further

RETAIL sales in Malaysia is forecast to grow slower than initially thought this year as higher living costs and stagnant salaries weigh on consumer confidence.

Retail Group Malaysia Sdn Bhd (RGM), which tabulates quarterly retail data for the Malaysia Retailers Association (MRA), cut its sales growth projection to seven per cent from eight per cent earlier.

The one percentage point cut could result in total sales for the year coming in at RM68.69 billion, a RM610 million shortfall.

The numbers take into account all sales, but exclude big-ticket items like houses and cars.

"Retailers are preparing for slower consumer spending this year. They are concerned about Malaysia's rising cost of living more so than a slowdown in the US economy," RGM managing director Tan Hai Hsin told Business Times in an interview.

"Today, Malaysia's economy is less dependent on the US. Our economic structure has changed and we are now more dependent on the Asian economy and internal domestic demand," Tan said.

Although sectors like commodity, oil and gas and telecommunications have been doing well, this has not benefited the majority of the Malaysian population.

"Most consumers have not benefited from higher salaries. Thus, we have not seen higher sales in the retail sector," he said.

On top of that, consumers have been cautious in their spending because they expect the cost of living to rise further. A hike in the price of petrol and electricity is anticipated this year.

As it stands, Malaysia's inflation for December 2007 grew by 2.4 per cent year-on-year, the highest in 10 months, although it grew by two per cent for the whole of 2007.

"We have been suffering from increasing cost of living since 2004 (when the oil crisis first started). It just gets worse every year," Tan remarked.

On a more positive note, Tan says a one percentage cut in retail sales is not serious. Retail sales was estimated to have grown by eight per cent in 2007, translating into RM64.2 billion in total sales.

"We are not seeing large numbers of companies closing down, retrenchments or salary cuts. Therefore, the take-home pay of most salaried men is not affected. They are just cautious in spending as their confidence level is not strong at this moment," he pointed out.

Retailers, meanwhile, hope higher living costs this year would be offset by government efforts to boost the people's disposable income. An example is the monthly withdrawals from the Employees Provident Fund to pay housing loans.

"It all depends how the government moves the economy so that people have more disposable income to spend," said F&N Holdings Bhd's chief financial officer Joseph Tan.

Meanwhile, RGM's Tan suggests retailers use sales and discounts to attract consumers, apart from cutting costs and opening more outlets to improve turnover.

"Improve your negotiation power with local suppliers, source supplies from overseas markets that offer cheaper prices, improve productivity of staff, reduce operation costs such as staff cost and rental cost. Retailers can also develop their own product lines so as not to rely too much on suppliers," he suggested.

[hetfield85]

http://news.bbc.co.uk/1/hi/business/7311083.stm
Tesco probes Malaysia wage claims


Tesco says doing business overseas can be challenging

Tesco has launched an inquiry into a report that some of its workers in Malaysia work up to 80 hours a week for as little as 8p an hour.
Migrant workers from Bangladesh told the Daily Telegraph that they paid a labour agent up to £1,500 to land a job at one of Tesco's Malaysian stores.

They then find themselves working for between £20 to £50 a month after deductions are made to their salary.

Tesco said it took the allegations about its contractors very seriously.

"Doing business in some overseas markets can be challenging as local laws and customs sometimes appear to conflict with the high expectations we have here in the UK and elsewhere in the international community," Tesco said in a statement.

"However, wherever we operate we insist on the highest standards of welfare for workers, both our own and - as in this case - those employed by contractors working for us."

"Whilst we do not believe that they are deliberately seeking to disadvantage their workers, if improvements need to be made we will not hesitate to make them."

The Daily Telegraph said labour agents promised the Bangladeshi workers that they would be paid £180 - £215 a month.

But migrant workers in Malaysia rarely earn more than a gross salary of £117 a month, the paper reported.

[rizalhakim]

Tesco probes claim of workers earning 50 sen an hour

Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Supermarket giant Tesco of the UK has pledged to investigate claims that some of its workers in Malaysia earn just eight pence, or about 50 sen, an hour.

“Doing business in some overseas markets can be challenging as local laws and customs sometimes appear to conflict with the high expectations we have here in the UK and elsewhere in the international community,” said Tesco in a statement sighted on a website.

It said job agencies were reportedly charging migrants up to £1,500 (RM9,493) to place them in Tesco jobs in Malaysia on the promise that they would earn between £180 and £215 a month.

The workers then find themselves subcontracted to work up to 360 hours a month for between £20 and £50, after various deductions have been made.

“We take allegations such as these very seriously and have launched an immediate investigation with our contractors. Whilst we do not believe that they are deliberately seeking to disadvantage their workers, if improvements need to be made we will not hesitate to make them,” Tesco said.

One Bangladeshi migrant who was taken on as a cleaner at a supermarket in Kuala Lumpur had paid a labour agent in Bangladesh more than £1,500 to find him a job in Malaysia. The 26-year-old, who asked not to be named, said he has ended up having to share a one-bedroom flat with 12 fellow Bangladeshis, taking it in turn to use the beds.

Even with these cost-cutting measures, they cannot hope to recoup the £1,500 they spent on getting their jobs. He said: “I decided to come to Malaysia so I could earn more money and feed my family properly.”

Migrant workers such as Tesco floor cleaners rarely earn much more than RM750 (£117) for a month — £20 to £50 per month after deductions, many of which the workers cannot understand.

[forrestcat]

Tesco have always had bad records when it comes to paying their workers around the world.

At least Carrefour have community programs where disabled people can get jobs. Carefour Wangsa Maju have some disabled workers working at the less than 10 item counters and food preparation. They even train the special students from my former school.

[rizalhakim]

Melati moving into property development

By LEONG HUNG YEE

KUALA LUMPUR: Having made its name in the construction services industry, Melati Ehsan Holdings Bhd intends to move into property development to diversify its earnings.

“Construction services are currently the group's main contributor. However, we are always on the look-out for ways to enhance our income stream,” managing director Datuk Yap Suan Chee told StarBiz in an interview.

Listed on the Bursa Malaysia main board last March, Melati will be developing its sole plot of land in Pandamaran, Klang soon. The 100-acre land was purchased from Bank Negara unit, TPPT Sdn Bhd, for RM32mil cash, Yap said.

The development, which has an estimated gross development value of RM500mil, will comprise about 500 gated residential units, 320 shop lots with 8.97 acres of commercial units and 6.92 acres of industrial units.

Executive director Tan Hong Hing said apart from diversifying its income base, venturing into property development would enable the group to command higher margins.

“We w ill be able to reap the profit twice. The first being the developer of the project and second, for construction of the property,” he added.

Tan said Melati would continue to accumulate strategic land bank with residential and commercial property development potential.

Yap said the group was currently at the planning stage and had not started developing the land.

To a question, he said he foresaw a slight delay in the project due to the transition of power in the Selangor government but added that it would not be a major problem.

“We will be having meeting with the state government in due course,” Yap said.

Melati's construction division had been growing steadily over the years, even during the financial crisis, because of its ability to complete projects on time and within budget.

Melati's order book now stands at RM1.7bil, which will keep the company busy for three to five years. To sustain growth, it has tendered for projects amounting to over RM1bil.

“We are still aggressively bidding for more contracts and are confident of increasing our order book.

“The bulk of our projects are local, but if the opportunity arises and the projects overseas are commercially viable, we would consider them,” Yap said.

Recently, the group clinched the job for the construction of Carrefour hypermarket for Magnificent Diagraph Sdn Bhd in Kota Damansara, Selangor.

The company, which has one flood mitigation project in hand, has bid for similar jobs in Johor Baru.

On its financial performance, Yap said the company hoped to perform better in the financial year ending Aug 31.For the year ended Aug 31, 2007, Melati posted a net profit of RM27mil on turnover of RM173.4mil.

[Arkdriver]

dah start construction kot. Sebelah sekolah rendah. kat seksyen 6. About 500 metres from dataran sunway

[rizalhakim]

well terima kasih mr driver...

Melati Ehsan awarded RM40.5m construction contract

Email us your feedback at fd@bizedge.com


KUALA LUMPUR: Turnkey contractor Melati Ehsan Holdings Bhd (MEHB) has received the letter of award for a RM40.5 million construction job for the main building of Carrefour Hypermarket in Kota Damansara.

In an announcement to Bursa, MEHB said the award was received by its wholly-owned Bayu Melati Sdn Bhd, with the contract expiring on June 28.

Prior to the award of the main building work of this project, Bayu Melati had also been awarded earthworks and piling works on the project worth RM3.4 million.

In a separate announcement to Bursa, MEHB said the board of directors of MEHB had decided to vary the utilisation of its initial public offering (IPO) proceeds in view of additional working capital needed for its new project, which requires immediate funding as compared to the private finance initiative (PFI) projects.

MEHB is reallocating RM10 million from IPO proceeds set aside for PFI projects, to part finance the initial start-up cost for the new construction project in Kota Damansara.

“Any future PFI projects will be financed through internally generated funds,” it added.

The company raised RM35.2 million in its IPO exercise in March last year.

[rizalhakim]

pics taken from melatiehsan.com.my

[rizalhakim]

[rizalhakim]

[rizalhakim]

GIANT - KOTA DAMANSARA

[rizalhakim]

CARREFOUR KLANG

[rizalhakim]

Mydin to boycott Dutch products
Published: 2008/04/01


MYDIN’S chain of supermarkets and hypermarkets has decided to boycott Dutch products in response to the anti-Islam film “Fitna” produced by Dutch legislator Geert Wilders.

Mydin Mohamed Holdings Sdn Bhd managing director Datuk Ameer Ali Maidin said the film that was shown on-line had insulted Islam and Muslims all over the world.

“In support of Umno Youth, the Muslim Consumers Association Malaysia and other non-governmental organisations, we call on consumers, Muslims and non-Muslims, to collectively boycott Dutch products,” he said at a promotion drive for products of small- and medium-scale industries at Mydin Mall USJ, near Kuala Lumpur.

Officiating at the event was Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad, who is also an Umno Supreme Council member.






Ameer Ali said for a start, Mydin stores would stick red labels on racks displaying Dutch products to inform consumers of their origin. “Nobody has the right to condemn other religions,” he said.

Shahrir said the boycott would not hurt bilateral relations between Malaysia and the Netherlands, adding that the government would not stop businesses or consumers from taking such action as it was within their right.

He had before this described the action of Wilders as “political narrowness" and extreme.

The film placed on the Internet shows contempt towards Islam by putting Quranic verses against the images of terrorist attacks. — Bernama

[rizalhakim]

Mydin stores mark protest against anti-Islam film
By MANJIT KAUR

SUBANG JAYA: All Mydin stores nationwide have placed red labels on products from the Netherlands as a sign of protest over the release of the controversial anti-Islam film Fitna.

Mydin Mohamed Holdings Bhd managing director Datuk Ameer Ali Mydin said they have put up notices in their two hypermarkets and 24 emporiums nationwide as a step to urge shoppers not to purchase the products.

Dutch legislator Geert Wilders released the 15-minute film on the Internet on Thursday.


Red sticker day: Shahrir on a tour of Mydin Hypermarket in USJ, Subang Jaya, after he launched “Product Malaysia Citarasa Kita” promotion Monday. Inset — the notice to inform customers which products are from the Netherlands.

“We have put up red labels with the words ‘Product from the Netherlands’ on the shelves and posters have been pasted around the mall and cashier counters to urge shoppers not to buy the products.

“This will give customers a choice to shop for other products, especially local products.

“One need not be a Muslim to refrain from purchasing the products, as nobody has the right to condemn any religion – it is time to show how united we are.

“Anyway, there are many other products to choose from, and people need not worry,” Ameer said in his speech before Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad launched the Product Malaysia Citarasa Kita promotion at the Mydin Hypermarket in USJ here yesterday.

He added that they were, however, unable to remove the products from the shelves as consumers had the right to make their own choice.

Shahrir commended Mydin and Ameer for speaking up and placing the labels to discourage people from purchasing products from the Netherlands.

He said usually businessmen preferred to stay neutral when it came to such issues.

“But I am surprised with the speech by Ameer and the willingness of Mydin to place the labels to show their dissatisfaction over Wilders’ act.

“We are not angry with the Netherlands Government but with Wilders’ act, which has created anger among the Muslims,” he said, adding that there was no official boycott of Dutch products.

Shahrir said even companies in the Netherlands had said that they would take legal action against Wilders if their businesses were affected.

“And since their businesses are now affected, I hope legal action will be taken,” he added.

“With the move, consumers will have a choice of products that can compete with foreign products,” he added.

[rizalhakim]

Tesco to boost house brand
BY Jeeva Arulapalam
Published: 2008/04/08



BRITISH retailer Tesco Stores (M) Sdn Bhd will increase its line of house brand products by 50 per cent this year as the war on low-priced products continues to rage among hypermarkets.

"This year, we expect pricing to become even more competitive. For now, our house brand contributes about 15 per cent of (total) sales," Tesco marketing director Paul Morris told Business Times after its Tesco Shop 'N' Win Contest prize-giving ceremony yesterday.

For its financial year ended February 28 2007, the retailer recorded RM1.7 billion in sales. Its chief executive officer Chris Bush previously told Business Times that Tesco expected this to jump 50 per cent in 2008.

Morris said sales contribution from its Tesco brand will increase as the retailer adds to the current line-up of about 2,000 items. It plans to offer more household items such as plastic storage products, detergents and foot rugs.






In the UK, sales contribution from its household brand accounts for 80 per cent of sales.

"Customers have articulated that items they are most price conscious about are household chemical goods such as detergents and also baby products," he said.

Meanwhile, the retailer aims to increase its clubcard membership to two million by end-2008, from 1.3 million now. The clubcard was introduced last August.

The growth in clubcard membership will be driven by its expansion throughout Malaysia this year.

"We have secured (federal) approvals for seven to eight stores and should be able to open by end of this year," said corporate and legal affairs director Azlam Shah Alias during the press conference.

He said the stores, with an investment of RM50 million per outlet, will create 5,000 jobs.

[busybody]

I pitty so much to the small Kedai Runcit retailers.

Other than house delivery of gas, rice, sugar, they have nothing to offer and to compete with big hypermarket.

[rizalhakim]

Carrefour sees 36% sales growth this year
KUALA LUMPUR: Carrefour Malaysia expects sales to grow 36% this year compared with 14% last year driven by sales expansion via new stores and improved sales of its house brands.


Shafie Shamsuddin

The French hypermarket chain also projected a 30% growth in profits, higher than the 22% registered last year, managing director Shafie Shamsuddin said.

The company, he said, was also focusing on increasing sales of its house brands to almost 15% of total sales in two years.

“Consumers would have more (affordable) choices with our house brand, which is important during times of inflation.

“It would also assist the small and medium enterprises producing most of our house brands,” he said after a press conference on the top French companies in Malaysia.

Carrefour plans to have a total of 24 stores by 2010 from 13 currently. It will be spending RM15mil to RM100mil per store, depending on the size.

Shafie said the company had not experienced a slowdown in consumer spending despite the recent price hikes.

Carrefour is a member company of the Paris Stock Exchange Index, CAC 40, which comprises 40 most valued companies among the top 100 companies with the highest capitalisation on the bourse.

According to the French Ambassador Alain du Boispean, 22 member companies of CAC 40 with 12,000 employees were currently in Malaysia.

“The CAC 40 companies conduct over two-thirds of their business and employ over two-thirds of their workforce outside of France.

“They also employ 2.8 million people worldwide,” he said.


Ambassador of France His Excellency Alain du Boispean shaking hands with France embassy economic & commercial counsellor and trade commissioner Jean - Francois Bijon and looking on Malaysian French Chamber of Commerce & Industry president Alain Crouy at the French embassy.

du Boispean said some 180 French companies chose to set up business in Malaysia due to the country's good infrastructure, English-speaking manpower and its central location in Asia.

“These companies have invested US$2.7bil to date and employ almost 30,000 people in Malaysia,” du Boispean said, adding that 37 of these companies had chosen Malaysia to set up their respective regional headquarters.

[rizalhakim]

cawangan baru Carrefour
Oleh Ahmad Fiesal Othman


PEMBINAAN LANCAR: Empat lagi cawangan baru Carrefour di seluruh negara babitkan pelaburan RM300 juta.




Setiap lokasi dianggar babitkan pelaburan antara RM15j hingga RM100j

CARREFOUR Malaysia merancang membuka sekurang-kurangnya empat lagi cawangan baru di seluruh negara tahun ini membabitkan pelaburan berjumlah kira-kira RM300 juta.

Pengarah Urusan Carrefour Malaysia dan Singapura, Shafie Shamsuddin, berkata ini termasuk cawangan di Kuantan yang akan dibuka penghujung bulan ini, manakala dua lagi dikenali pasti dibuka di Mutiara Damansara dan Johor Bahru.



Katanya, pembukaan setiap cawangan dianggarkan membabitkan pelaburan antara RM15 juta hingga RM100 juta.

"Kami juga merancang untuk membuka cawangan pertama di Sabah dan Sarawak yang dijangka dilaksanakan dalam tempoh dua tahun lagi," katanya ketika ditemui pada majlis perjumpaan antara syarikat Perancis dengan wakil media di Kuala Lumpur, semalam.

Carrefour kini mempunyai 13 cawangan di Malaysia dan operasinya dikendalikan oleh Magnificient Diagraph Sdn Bhd yang 30 peratus kepentingannya dikuasai Syarikat Pesaka Antah yang dikuasai keluarga diraja Negeri Sembilan.

Shafie berkata, pihaknya mahu menjadikan cawangan baru di Kuantan lebih mesra pengguna, terutama untuk orang kurang upaya (OKU).

Katanya, cawangan Kuantan itu akan menjadi satu-satunya cawangan Carrefour memiliki kemudahan OKU yang dinaik taraf serta memenuhi tuntutan golongan berkenaan dalam pelbagai segi.

"Jika berjaya, kami akan menawarkan kemudahan OKU ini di semua 13 cawangan sedia ada supaya bersesuaian dengan keperluan pelanggan Carrefour yang merangkumi pelbagai golongan," katanya.

[coolman89]

Originally Posted by rizalhakim

cawangan baru Carrefour
Oleh Ahmad Fiesal Othman


PEMBINAAN LANCAR: Empat lagi cawangan baru Carrefour di seluruh negara babitkan pelaburan RM300 juta.




Setiap lokasi dianggar babitkan pelaburan antara RM15j hingga RM100j

CARREFOUR Malaysia merancang membuka sekurang-kurangnya empat lagi cawangan baru di seluruh negara tahun ini membabitkan pelaburan berjumlah kira-kira RM300 juta.

Pengarah Urusan Carrefour Malaysia dan Singapura, Shafie Shamsuddin, berkata ini termasuk cawangan di Kuantan yang akan dibuka penghujung bulan ini, manakala dua lagi dikenali pasti dibuka di Mutiara Damansara dan Johor Bahru.



Katanya, pembukaan setiap cawangan dianggarkan membabitkan pelaburan antara RM15 juta hingga RM100 juta.

"Kami juga merancang untuk membuka cawangan pertama di Sabah dan Sarawak yang dijangka dilaksanakan dalam tempoh dua tahun lagi," katanya ketika ditemui pada majlis perjumpaan antara syarikat Perancis dengan wakil media di Kuala Lumpur, semalam.

Carrefour kini mempunyai 13 cawangan di Malaysia dan operasinya dikendalikan oleh Magnificient Diagraph Sdn Bhd yang 30 peratus kepentingannya dikuasai Syarikat Pesaka Antah yang dikuasai keluarga diraja Negeri Sembilan.

Shafie berkata, pihaknya mahu menjadikan cawangan baru di Kuantan lebih mesra pengguna, terutama untuk orang kurang upaya (OKU).

Katanya, cawangan Kuantan itu akan menjadi satu-satunya cawangan Carrefour memiliki kemudahan OKU yang dinaik taraf serta memenuhi tuntutan golongan berkenaan dalam pelbagai segi.

"Jika berjaya, kami akan menawarkan kemudahan OKU ini di semua 13 cawangan sedia ada supaya bersesuaian dengan keperluan pelanggan Carrefour yang merangkumi pelbagai golongan," katanya.

yeah! so means that Sarawak-Kuching soon will have Carrefour hypermarket... How about Tesco? Any latest news about it?