Malaysia: Aeon to open 4 new stores

Aeon Co (M) Bhd’s RM34 million Seremban outlet will be operational in September and the retail giant which operates the Jaya Jusco department stores will also open three more stores next year, said its chairman Datuk Abdullah Mohd Yusof.

One of the outlets would be in Johor Bahru while the other two would in be Cheras and Equine Park in the Klang Valley, he said at a press conference after the AGM in Kuala Lumpur yesterday. Nagashi Oyama was appointed the new managing director of Aeon, formerly known as Jaya Jusco Stores Bhd, taking over from Soichi Okazaki. The Johor Bahru store would be operational in January 2006, and the other two by mid-2006, increasing the network of stores to 14.

“We have to continue to expand. There are many areas outside the Klang Valley which are good markets for us. We’re always evaluating (prospects) especially along the west coast right up to Alor Setar and also on the east coast,” he said. Abdullah said Aeon’s expansion was part of its strategy to enhance its market share. Currently, it has 3% to 3.5% of the RM50 billion local retail market.

For the financial year ended Feb 28, 2005, Aeon recorded RM1.78 billion revenue, an increase of 17% from RM1.52 billion the previous year. Earnings were RM64.27 million from RM63.58 million. Abdullah said 40% of its revenue was from outlets in Mid Valley Megamall, 1-Utama in Bandar Utama and Taman Maluri.

He said the company was also very successful with its loyalty card or “J card”, which had 430,000 members and their spending accounted for 50% of the stores' monthly sales. “Just to show you how strong the loyalty card, yesterday (Tuesday) alone, we achieved a sales of RM8 million at our Mid Valley store,” he added.

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