Aeon Malaysia plans to open smaller stores, mainly furniture and electronic outlets.

It has set a capex of 1.4 billion ringgit ($435 million) this year to open stores and renovate some existing ones.

The furniture stores will be operated in a JV with Thailand furniture retailer Index Living Mall.

The multi-format retailer says it plans no more malls in the country as competition in the sector heats up.

“Competition, changing consumer market behaviors all warrant this kind of evolving change,” said executive director Poh Ying Loo.

“There’s an ample increase in retail space in the last year and it’s going to increase further in the next two or three years.”

However, Aeon remains bullish about mall business prospects in other parts of Southeast Asia with new centres in Cambodia and Vietnam.