Best Mart 360 reaps benefits of expansion

Discount ‘leisure-food retailer’ Best Mart 360 is reaping the benefits of a store network expansion with sales up by nearly 20 per cent last year to HK$1.289 billion. 

The company added 19 stores last year, including its first at Hong Kong International Airport (T2), taking the chain to 89. 

This year, according to CEO Hui Chi Kwan, the company will open more stores in Hong Kong and explore opportunities in Greater China. 

Gross profit increased by 26.9 per cent to $434.4 million, and gross profit margin by 1.9 percentage point to 33.7 per cent. After discounting one-off listing expenses, profit attributable to shareholders rose by 34 per cent to $780 million.

Best Mart 360 said the increase in sales was the result of same-store sales growth, new stores and an improvement in procurement capabilities in sourcing products with competitive prices that are attractive to customers.

The company actually opened 28 new stores during the year but closed nine due to leases expiring and consolidating stores in close proximity. Of the current network, 39 are located in the New Territories, 33 in Kowloon and 17 on Hong Kong Island. 

Best Mart 360 offers 3261 SKUs from suppliers principally from overseas markets, such as Japan, Europe, the UK, South Korea and countries in the South East Asia, as well as brand owners or importers in Hong Kong.

The retailer is also building a portfolio of private-label products “to capture advantages of pricing and exercise higher level of quality control on its products and … further uplift its brand awareness and market visibility”. It has now launched seven private-label brands of products, including wet tissues, chestnuts, canned abalone, dried fruits, aloe gel and pork jerky.

During the year to March 31, the retailer’s loyalty program membership rose from 792,000 to 1.268 million. 

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