Newsletter
Shop
Login
Menü
Subscribe now
Dominant Malaysian home improvement retailer Mr. DIY saw robust sales in the third quarter thanks to the contribution of new stores, as it hinted at plans to slacken its pace of expansion on its home turf over the next five years. The company told Bursa Malaysia that revenues rose 10.4 per cent to 1.07 bn Malaysian ringgit (MYR, EUR 208.5 mio) after the launch of 170 new outlets between September 2022 and September 2023 boosted transactions.
Mr. DIY's tills rang in 35.8 million transactions during the period, 16.3 per cent more than in the comparative period. However, it noted that the basket size, or the number of items per transaction, decreased 5.1 per cent due to weak consumer sentiment.
The third quarter take was three per cent less than revenues in the second quarter. Mr. DIY chalks this up to not having festive occasions between June and September 2023.
Accumulated revenues for the nine-month period ending September 2023 rose 10 per cent to MYR 3.2 bn, with Malaysia contributing MYR 3.19 bn and Brunei accounting for the rest.
In a statement, Mr. DIY chief executive Adrian Ong said that store expansion for this year is on track, with 123 Mr. DIY, Mr. Toy and Mr. Dollar stores opened between January and September 2023, and 57 stores still to be opened for the rest of the year. Mr. DIY plans to end 2023 with 1 260 stores. But a five-year plan to have 2 000 branches operating by 2028, with 180 of these to be opened in 2024, indicates that the company is nearing saturation point in its home market and intends to slow down its store network expansion.
Should Mr. DIY reach its target of 1 260 stores for this year and realise its aims of opening 180 more next year, it will close 2024 with 1 440 outlets. This would mean that a total of 560 outlets will be launched between 2025 and 2028, or 140 branches a year. This is lower than the 180 new stores it has been opening annually.
Ong also disclosed plans of Mr. DIY to launch new brands "to capitalise on growth opportunities, as well as potential horizontal and vertical acquisitions to boost operational synergies, ensure future growth visibility, and safeguard our supply chain". Earlier this year, Mr. DIY launched Emtop, a power tools retailer.
