Aeon will go to Kuching and Kota Bharu by 2016

KUALA LUMPUR: Aeon Co (M) Bhd is making headway in its plans to expand to Kuching and Kota Bharu by 2016.

The company is planning its expansion to the two cities, with the land for the new stores already being identified.“We have identified the locations, and are in the planning stage. 

“Very soon, it’ll be in the construction stage and that will take about two years to complete. “So, by 2016, you will be able to see these new markets Aeon will be in,” managing director Nur Qamarina Chew told a press conference after the company AGM here yesterday. 

The average size of the land would be between 20 acres and 25 acres each, added chairman Datuk Abdullah Mohd Yusof. 

Aeon has targeted to expand into Kedah, Kelantan, Terengganu, Sabah and Sarawak over the next five years. 

This year alone, Aeon will be opening three new Aeon outlets as well as two MaxValu stores.Two of the three new outlets will be part of the new shopping centres in Bukit Mertajam and Taiping. It will also be an anchor tenant in a shopping mall in the Kuala Lumpur business district. 

Although consumer sentiment is expected to be subdued going into 2015, especially with the goods and services tax (GST) coming on-stream in April 2015, Aeon is prepared to weather any downturn in consumer sentiment. 

Nur Qamarina said that following the Japanese experience, there is a likelihood that customers would buy more high-priced items prior to the introduction of the GST. 

“So, the two months before the GST goes live, it will be a good chance for us to do some promotional strategies,” she said.

Nur Qamarina added that any negative impact from the GST would be “stabilised” by the Hari Raya season in June next year.This year, Aeon is also looking to introduce new food and lifestyle brands. 

“We are moving in phase by phase to differentiate ourselves and to create a better shopping experience for our customers rather than to just hard sell and offer low prices,” said Nur Qamarina. 

Aeon recorded a slightly lower net profit of RM46.88mil for the first quarter ended March 31, 2014, compared with RM51.11mil a year ago. 

The decrease was due to higher utilities and promotion expenses, as well as initial costs associated with new store openings.

However, revenue for the quarter rose 8.8% to RM945.51mil from RM869.27mil in the same quarter last year, on the back of higher revenue from the group’s retail business and property management services segments. 

Source: The Star Online | 16 May 2014