TESCO Stores (Malaysia) Sdn Bhd aims to invest about RM2 billion over the next three to five years in capital expenditure as part of its organic growth plan, its chief executive officer Chris Bush said.
He said the investment would include the setting up of three more hypermarkets next year — one each in Johor Bahru, Alor Setar and Kota Baru — and the strengthening of its supply chain via the setting up of a fresh food distribution centre in Simpang Pulai, Perak.
“The company has already invested around RM911 million since we set up in 2001,” he said at a media briefing in Petaling Jaya yesterday on Tesco Malaysia’s aquisition of Makro Cash & Carry Distribution (M) Sdn Bhd for an undisclosed sum.
Tesco Malaysia is a 30:70 joint venture between Sime Darby Bhd and United
Kingdom’s Tesco Ltd.
Bush said the investment did not include its acquisition of Makro, which operates
eight stores. The transaction is pending the government’s approval. He said Tesco Malaysia expected to recover its investment in Makro within five years. It plans to invest about RM240 million to refurbish the Makro stores and add 1,500 staff to the latter’s existing staff strength of 900.
He said the Makro stores would be rebranded as Tesco Extra and that the
stores would help Tesco Malaysia grow its 6.7% market share in the grocery market sector.
“Giant is the market leader with an 8.5% to 8.6% market share while Carrefour is
less than us, about 5%. “With the Makro buy and our own organic expansion, we should get close to number one, could even be the number one position,” Bush added. — By Alfean Hardy
Source : SUN
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