PETALING JAYA, 27 Nov 2018:
MyNEWS Holdings Bhd is investing RM80 million at a plant in Kota Damansara to supply fresh ready-to-eat food products for all its convenience stores, focusing on the Klang Valley.
“Right now, our fresh food production can only supply about 50 stores and we’d like to expand this offering to all our outlets,” said chief executive officer Dang Tai Luk today.
“We have around 450 stores nationwide and some of these stores get the fresh food supply from contracted suppliers. So there’s no consistency in the quality and variety of fresh food offerings, we’d like to address this situation.”
He noted there’s still a lack of large scale ready-to-eat food suppliers in Malaysia – unlike mature markets with extensive convenience store chains Like Japan, South Korea and Taiwan.
“The local landscape is changing and I see a day when people on the move can buy breakfast, lunch, dinner and snacks in-between at convenience stores all over.”
He said the range of products offered at convenience stores will also evolve. “Why not tickets for travel or entertainment too?”
To cater for such projected demand, Dang said around 8-10 MyNews.com outlets are being added every month. “We still have a very long way to go,” he said, noting mature markets now have over 60,000 stores while there are still less than 3,000 all over Malaysia.
“Right now, there are about 24,000 mom-and-pop outlets all over Malaysia and many of them will eventually be phased out as younger people aren’t keen to take over from their parents. This is a market we can tap into.”
The firm has so far focused on urban centres on the peninsula with only three stores so far in East Malaysia. With it aggressive growth strategy, largely with own stores rather than franchised-ownership, Dang said it is possible the firm may tap into debt financing.
“The firm’s gearing is almost zero right now and we have the capacity to raise funds from the capital market, starting with the RM80 million for the fresh food plant.”
Going cashless is another key initiative for its convenience stores and Dang said the tie-up with Mastercard will see customers get a free drink when making purchases of at least RM10 – a promotion till end-March 2019.