Aeon Myanmar launched with acquisition
Japanese grocery and mall giant Aeon is expanding its Asian footprint yet further, acquiring a 14-store supermarket chain in Myanmar.
The Aeon Myanmar operation will be run by a new company, Aeon Orange, which has acquired the supermarket chain from Hypermarket Asia, one of the affiliate companies of Creation Myanmar Group.
At the same time, the newly established company is preparing to open its first supermarket in Myanmar before year end.
Aeon says that the economic liberalisation after transition to a civilian government, has seen
Myanmar’s retail industry modernise, and the ranks of the nation’s middle class are growing.
“With the population of 53 million people, the real economic growth rate in the country is 8.3 per cent – dramatic growth exceeding the average rate among five developed nations in ASEAN countries,” Aeon said in a statement.
CMG’s 14 supermarkets are mainly in Yangon, Myanmar’s largest city, and it also holds more than 20 overseas brand sales licenses including Adidas and Mango operating some 130 stores.
The launch of the Aeon Myanmar business follows successful forays into China, Thailand, Vietnam and Cambodia as the Japanese retailer looks for growth internationally to offset declining sales in its home market which is suffering from a falling population.
“In order to develop business in a speedy manner in this fast growing Myanmar market, Aeon believes that cooperation with CMG is indispensable, as it has the retail business infrastructure in the country and is also familiar with the customer needs which differ from region to region,” the company said.
Aeon will learn the customer needs in the region and the know-how of community-based
product procurement, while offering Aeon’s private brand “Topvalu,” the global sourcing
through utilising the group’s comprehensive multinational strength and quality control to assure “safety and security,” and bring logistics, IT, and human resource development to CMG.