Aeon to invest US$119 million on new Malaysian Malls
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Aeon Malaysia will spend around RM500 million (US$119.2 million) this financial year on mall renovations and new openings.
The figure is less than the Japanese retailer’s spend last year and reflects a more focused approach on portfolio consolidation and refurbishments.
The retailer currently operates 28 Aeon malls and 34 outlets. It is intending to open its next mall in Nilai, Negeri Sembilan this year, as well as renovating its Aeon Taman Maluri mall in KL. It will also invest in upgrades to selected Daiso and Wellness pharmacy stores.
Aeon Malaysia’s net profit rose to RM32.64 million (US$7.8 million) in the first quarter to March 31, up from RM27.94 million in the same period last year, mainly driven by higher retail revenue and margin.
Aeon MD Shinobu Washizawa admitted that the firm’s tighter focus serves reflects an expected weak performance this year as consumer activity remains subdued. The company has also been absorbing new costs related to the implementation of sales and services tax last year.
“It will be a challenging year. But we are working on controlling our costs and increase operational efficiencies,” he said.
Questions & Answers
Q.What is the primary reason for Aeon Malaysia's more focused approach to its investments this financial year?
What is the primary reason for Aeon Malaysia's more focused approach to its investments this financial year?
The firm's tighter focus reflects an expected weak performance this year, as consumer activity remains subdued. The company has also absorbed new costs from the sales and services tax implementation.
Q.How many new malls does Aeon Malaysia plan to open this financial year?
How many new malls does Aeon Malaysia plan to open this financial year?
Aeon Malaysia is intending to open one new mall this financial year, which will be located in Nilai, Negeri Sembilan.
Q.Which existing Aeon mall is scheduled for renovation this financial year?
Which existing Aeon mall is scheduled for renovation this financial year?
The Aeon Taman Maluri mall in Kuala Lumpur is specifically mentioned as being scheduled for renovation this financial year.
Q.How much less is Aeon Malaysia spending this year compared to last year?
How much less is Aeon Malaysia spending this year compared to last year?
The article states the RM500 million (US$119.2 million) investment figure is less than the Japanese retailer’s spend last year, but does not provide the exact difference or last year's total.