Mydin puts Sam’s Groceria stores up for sale
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Malaysian grocery chain Sam’s Groceria is being sold by owner Mydin Mohamed Holdings as it divests loss-making businesses.
Mydin values the high-end grocery business at US$12.5 million (MYR50 million). The chain has four outlets: in Gurney Paragon Mall and Straits Quay on Penang island, Sunway Carnival Mall in Seberang Perai, and Nu Sentral in Kuala Lumpur.
Managing director Datuk Ameer Ali Mydin says the decision to sell followed the realisation that the stores’ patrons were mainly local Chinese and expatriates. “We do not sell liquor, wine, beer or pork, so we have been unable to meet our customers’ needs.”
Sam’s Groceria, which started in 2013, stocks 60 per cent imported grocery products and fresh food.
Last year, Mydin disposed of another loss-making unit, MyMydin Convenience, and discontinued its Kedai Rakyat 1Malaysia (KR1M) stores.
For the year ended March 31, 2016, the group posted its first loss, of MYR156.6 million, in 60 years. With an internal re-organisation and cost cutting, the group managed to post a small profit last financial year.
Questions & Answers
Q.What is the primary reason Mydin is selling its Sam's Groceria stores?
What is the primary reason Mydin is selling its Sam's Groceria stores?
Mydin is divesting Sam's Groceria because it is a loss-making business. The stores' patrons, mainly local Chinese and expatriates, have needs that the chain cannot meet due to not selling liquor, wine, beer, or pork.
Q.How many Sam's Groceria outlets are currently up for sale?
How many Sam's Groceria outlets are currently up for sale?
There are four Sam's Groceria outlets being put up for sale. These are located in Gurney Paragon Mall, Straits Quay, Sunway Carnival Mall, and Nu Sentral.
Q.What other businesses has Mydin divested or discontinued recently?
What other businesses has Mydin divested or discontinued recently?
Last year, Mydin disposed of MyMydin Convenience, another loss-making unit. It also discontinued its Kedai Rakyat 1Malaysia (KR1M) stores as part of its business restructuring efforts.
Q.What was Mydin's financial performance like before this decision?
What was Mydin's financial performance like before this decision?
For the year ended March 31, 2016, Mydin posted its first loss in 60 years, amounting to MYR156.6 million. However, the group achieved a small profit in the last financial year after an internal re-organisation and cost cutting.
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