Malaysian apparel chain operator Padini is expanding its footprint into Sarawak and Sabah.
The company says it will focus on opening more Brand Outlet stores, with their offer adjusted to suit the demographic of each city in which they open.
Padini is expected to use Brand Outlet, which carries a range of its own brands and third party stock, to drive growth.
Executive director Chan Kwai Heng said the company plans to open one Brand Outlet and one Padini Concept Stores in each of Vivacity Megamall in Kuching and in Bintulu.
Padini’s 2014 earnings have softened as operating expenses rose faster than sales revenue due largely to promotional events and clearance sales.
But analysts expect the company to improve in 2015 by as much as 10 per cent as fine-tuning of the store network and the opening of new stores continues.
Heng commented in an interview with the Borneo Post newspaper: “For Financial Year 2015, the group still sees potential for top-line growth considering the expansion in the size and reach our distribution network. The increase in our number of stores achieved in 2014 will continue in 2015 and all these new stores should help boost top-line growth,” he said.
“Even as competition intensified, the diverse market segments we serve and the geographical spread of our distribution network have helped us tremendously to moderate the competitive pressures faced.”
Next year Padini plans four new Brand Outlet stores and four Padini Concept Stores on the Malaysian peninsular.
Included in the fine-tuning: the Padini Concept Store at Komtar in Johor is expected to replace the store in JB City Square while a new Padini Concept Store in Mid Valley Megamall in Kuala Lumpur is scheduled to replace six single brand shops in centre.
In the year to June Padini increased revenues 9.7 per cent year-on-year to RM866.26 million, (US$290 million). Profit rose 6.5 per cent to RM90.91 million (US$30 million).
