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Alison Horner, CEO of Tesco Asia, shared the region’s plan to maximise the mix in a meeting for investors and analysts at its head office in the UK.
Tesco announces positive first quarter results with Asian sales rising 2.6% quarter on quarter at constant rates.
Dave Lewis, CEO of Tesco, shared that the increase in Asia is supported by significant growth in the Bangkok area. The Asian business returned to like-for-like sales growth, up 0.1% to GBP1.2bn (US$1.5bn). It is helped by a stronger customer offer contributing to a better performance across all formats and categories.
Tesco grew faster than the market in the UK on both volume and value by 0.2% and 1.3%. He added, “our customer offer is more competitive than ever, with a wider choice of our ‘Exclusively at Tesco’ products available in more stores, helping to drive more than 10% growth across the range.”
Keep up-to-date with the latest retail developments from Asia.
Sales for the first quarter grew by 9% versus same period last year.
7-Eleven Malaysia reported sales revenues of MYR583.73m at the end of the first quarter of 2019, a 9% increase in previous year’s sales. This growth was attributed to positive response to consumer promotions, opening of new stores as well as an increased basket size per shopper.
7-Eleven Malaysia currently operates 2,311 stores in Malaysia and reported a significant growth of 30% within its food service category. Like-for-like store sales also saw a growth of 6.1%.
Correspondingly, profit after tax was MYR$11.15m, a rise of 24.8% (MYR$2.22m) versus same period last year.
“We see opportunities for improvement and confident that our strategy roadmap of strengthening the key areas of assortment, supply chain, operational excellence, store base and digitally enabling the organisation will bear fruit in terms of financial performance and overall customer experience,” said 7-Eleven Malaysia chief executive officer Colin Harvey.
Find out more information about 7-Eleven Malaysia here.
Dairy Farm has released its results for the first quarter of 2019, with sales ahead of the same period last year.
The Group’s multi-year transformation plan for its Supermarkets and Hypermarkets business is underway, but CEO Ian Mcleod previously estimated it will take the company five years to complete its turnaround plan. Sales in North Asia were in line with last year, with sales growth in Hong Kong and Macau offset by weakness in Taiwan.
Sales in Southeast Asia were impacted by the launch of a store consolidation plan in the region. which aims to drive stronger profitability longer term.
Convenience store sales increased in all markets, but store network expansion impacted profits.
Sales and profits growth continued for the Health and Beauty business in North Asia. Southeast Asia also delivered a solid performance with encouraging sales and profits growth in the quarter, particularly in Malaysia and Indonesia.
Profitability in the Home Furnishings business was lower mainly due to the increased cost of goods compared with last year and the pre-opening costs for new IKEA stores under development.
Maxim’s and Yonghui delivered strong sales growth for the period and their like-for-like contributions were also ahead. The Group’s results also benefitted from its 20% stake in Robinsons Retail it acquired in November last year.
As Dairy Farm looks to reshape the Food business to achieve long-term sustainable growth, performance from key associates Maxim’s, Yonghui and Robinsons Retail will become even more important to support Dairy Farm’s top-line growth.
Asia subscribers can read more on Dairy Farm's Strategic Outlook here.
Dairy Farm FY18 results here.
AEON has partnered online grocery delivery company HappyFresh in Malaysia to provide shoppers greater convenience.
AEON Malaysia continues to step up its ecommerce initiatives. It previously announced partnership with Honestbee, and now is allowing customers to buy groceries via the HappyFresh mobile app. Users will be able to choose from approx. 50,000 products on the platform.
Four new stores in Klang Vallley will participate, including AEON Wangsa Maju, AEON Taman Equine, AEON MaxValu Prime in Sunway Velocity and AEON Bandar Datuk Onn in Johor Bahru.
To celebrate the partnership, HappyFresh customers who buy from AEON’s participating outlets will receive discounts starting from MYR$20. Furthermore, first time customers will also enjoy free delivery and a MYR$50 voucher.
Hu Hun Hui, HappyFresh Malaysia’s Managing Director, said, “Over the years, we have seen an increase in our customer base as we introduce new partners. With AEON onboard our platform, we are confident they will further add value to our service of delivering the best to our customers.”
In November last year, we outlined partnerships shaping the online future as one of the five key trends to watch. Retailers are partnering with third party service providers delivering fulfilment and benefits. Besides AEON, HappyFresh also works with GCH Retail, Tesco, Village Grocers and specialty stores.
This in-depth guide to Malaysia explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
Five year growth forecasts for the grocery market, the leading retailers and modern trade grocery channels in Malaysia+.
New study shows 75% of Malaysian consumers say that food companies should tweak their recipes to make products healthier.