Giant plans new hypermarkets
Competition in Malaysia’s hypermarket sector is fierce, with three major players already battling for the consumer dollar.
Local player Giant, founded by Malaysians in 1944, but now owned by Hong Kong-based Dairy Farm Holdings, is the largest player, but battling to preserve its share against rivals Aeon of Japan and UK’s Tesco, which have larger stores with broader product ranges including higher end products and a more customer-friendly shopping experience.
Giant says it will open four new hypermarkets in 2015, adding to its existing network of 126.
The new stores will be in Klang Valley, Sarawak, Perlis and Trengganu.
A new hypermarket in Petrajaya is under construction and expected to open in the first quarter of 2016.
Sister business G-Express, a convenience store chain, has even bolder ambitions, with 500 new stores planned over the next five years. It currently has just eight, and will be taking on Japan’s 7-Eleven as the dominant player in that sector.
Dairy Farm’s Malaysian operation is owned by GCH Retail, which also owns Cold Storage supermarkets, Mercato and Jason’s.
A Giant executive told a media briefing last week that competition in the hypermarket sector was good for the industry.
“Obviously, the shoppers will be the real winners. Again, the market is also big enough for everybody.
“Giant will seek to maintain its niche by continuing to offer modern, clean and customer-friendly shopping environment, wide aisles, many varieties of products and above all fair prices,” he said.