Aeon Malaysia will spend around RM500 million (US$119.2 million) this financial year on mall renovations and new openings.

The figure is less than the Japanese retailer’s spend last year and reflects a more focused approach on portfolio consolidation and a refurbishments.

The retailer currently operates 28 Aeon malls and 34 outlets. It is intending to open its next mall in Nilai, Negeri Sembilan this year, as well as renovating its Aeon Taman Maluri mall in KL. It will also invest in upgrades to selected Daiso and Wellness pharmacy stores.

Aeon Malaysia’s net profit rose to RM32.64 million (US$7.8 million) in the first quarter to March 31, up from RM27.94 million in the same period last year, mainly driven by higher retail revenue and margin.

Aeon MD Shinobu Washizawa admitted that the firm’s tighter focus serves reflects an expected weak performance this year as consumer activity remains subdued. The company has also been absorbing new costs related to the implementation of sales and services tax last year.

“It will be a challenging year. But we are working on controlling our costs and increase operational efficiencies,” he said.