New stores buoy Mr. DIY’s sales in home turf

Mr. DIY’s consolidated revenues for 2023 rose 9.4 per cent to 4.359 bn Malaysian ringgit (MYR, EUR 842.8 mio), thanks to the new outlets which were launched last year, the company told the Malaysian stock exchange. “The revenue growth was primarily driven by a positive contribution from new stores… leading to a corresponding 16 [per cent] year-on-year increase in total transactions [volumes] to 165.1 million,” the company said.

It added that it could have done better were it not for the “negative like-for-like growth as a result of weaker retail sentiment during the period”.

Of the full-year take, the Malaysian operations accounted for the lion’s share, or RM4.33 bn, while Brunei contributed RM 46.45 mio.

In the fourth quarter alone, Mr. DIY Malaysia’s consolidated revenues rose 7.6 per cent top RM1.146 bn, thanks to a 16.7-per cent rise in total transactions for the October-December 2023 period, to RM 44.4 mio.

“The Group remains confident of its prospects going forward, driven by continued demand for everyday essentials and a growing store network,” Mr. DIY stated in its financial report.

“It remains well-positioned to meet the daily household needs of all Malaysians, propelled primarily by its promise of consistent value, especially in this period of persistent inflation and the rising cost of living, which continues to impact many Malaysian households.”

According to the financial report, Mr. DIY closed 2023 with 1 261 outlets, or 181 stores more than at the end of 2022. A separate statement from the company, however, mentioned that Mr. DIY only had 1 255 branches at the end of 2023. This would mean that Mr. DIY missed its target to open 180 stores in Malaysia for 2023 by five, having only been able to launch in 175 new locations.

This year, the company is keeping to its annual expansion target of opening 180 new stores. The company plans to operate 2 000 stores in its home turf by 2028, indicating that it would slow down expansion to around 140 outlets per year from 2025. This, in turn, indicates that the Malaysian home improvement market could be nearing saturation its saturation point. 

“This [store network of 2 000 outlets] will further cement the group’s position as the largest home improvement retailer in the country,” Mr. DIY chief executive Adrian Ong was quoted as saying in the press statement.

Mr. DIY operates eponymous stores in Malaysia and Brunei. It likewise operates retail chains Mr. Toy, Mr. Dollar, and Emtop. The publicly listed company  is not…