![]() “Thus far, we note that same-store sales growth for the small-format or specialty segment has been promising, ranging from 2.5 per cent for Daiso and 10.7 per cent for Wellness based on available data as at 2018. “Given the heightened uncertainties, we understand that previous expansion plans of eight to 10 and three to four additional stores for Wellness and Daiso respectively will likely be pushed back to a later date. To date, the research firm gathered that Aeon operates nine Maxvalu, 73 Wellness and 43 Daiso stores. It noted that all three collectively account for circa10 per cent of Aeon’s turnover. “Post MCO, we are of the view that discretionary sales are likely to remain lackluster for the remainder of 2020, as consumers may hold back on spending amidst unfavorable macro conditions.”Īs for Aeon’s Maxvalu stores and Wellness stores, Affin Hwang Capital recalled that these were allowed to operate during the MCO whereas Daiso had to remain closed as it was deemed non-essential. “The general merchandising store, which consists of softline (clothing, bedding, etc) and hardline (household goods, electronics, etc) products typically command circa 50 per cent of retailing revenue, with supermarket making up the other 50 per cent of the group’s retail sales. On a side note, Aeon’s electrical department reopened earlier on April 26, 2020. “Looking ahead, grocery sales should start to normalise with better planning on supply needs among consumers in the coming months.”Īffin Hwang Capital highlighted that while the uptick in Aeon’s grocery sales is a positive, it is unlikely to sufficiently make up for the revenue loss at its GMS which was temporarily closed during MCO (March 18 to May 4, 2020). “Aeon’s online sales partner through Happy Fresh also had a good reception, albeit the contribution is rather insignificant at the current juncture. “Meantime, Aeon rolled out initiatives such as personal shopper and drive-thru service in selected areas in response to providing a safe shopping experience amidst the MCO. ![]() “Based on data from Retail Group Malaysia (RGM), grocery retailers saw their sales climb by 20.9 per cent year on year (y-o-y) and 9.5 per cent y-o-y during MCO Weeks 1 and 2, respectively, as shoppers rushed to stock up on essential goods,” the research firm said. KUCHING: Aeon Co (M) Bhd’s (Aeon) supermarkets thrived during the Movement Control Order (MCO), but analysts opine that this was unlikely to sufficiently offset the slump in the group’s General Merchandising Store (GMS).Īffin Hwang Investment Bank Bhd (AffinHwang Capital) recapped that driven by initial fears of an unprecedented lockdown, Aeon’s supermarkets experienced an uptick in sales as panic buying ensued in the early phase of the MCO. ![]() Aeon rolled out initiatives such as personal shopper and drive-thru service in selected areas in response to providing a safe shopping experience amidst the MCO. ![]()
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