The trajectory of Jaya Grocer, Malaysia’s foremost mass-premium supermarket brand, has been punctuated by both jubilant milestones and poignant moments of reflection. As the company embarks on the promising journey of 2024 with the inauguration of its 50th outlet in Seremban, the vibrancy of its expansion juxtaposes against the backdrop of a sombre event – the recent passing of its visionary founder, Teng Yew Huat. The dual narratives encapsulate the essence of Jaya Grocer
cer’s evolution, from its inception in 2007 to its present stature as a cornerstone of Malaysia’s retail landscape.
In an exclusive interview with Inside Retail, CEO Adelene Foo delved into the intricate tapestry of growth, resilience, and the enduring legacy of one of Malaysia’s most cherished retail brands.
The current state of affairs
According to Foo, as a home-grown brand and a leading mass-premium supermarket chain, Jaya Grocer has been steadily growing, and this growth can be attributed to the strong support from Malaysians and the brand’s focus on providing quality premium products.
“Central to our expansion strategy is the selection of high-traffic locations to maximise exposure. Jaya Grocer has found favour with mall owners and consistently offered great locations,” she told Inside Retail.
Foo said that the brand has built up a reputation for quality premium goods that meet Malaysian needs.
“As such, we have been fortunate to always be offered great locations by mall owners. Additionally, each new location is meticulously evaluated by an in-house research team, utilising retail data and external surveys to guide the decisions,” she added.
For now, Foo said that Jaya Grocer’s primary focus remains on Malaysia, particularly under-served neighbourhoods. As the leading mass-premium supermarket brand, its mission is to serve urban and suburban Malaysians nationwide.
“Having introduced unique propositions such as GrabMart partnerships, we continue to elevate the shopping experience for all our customers. It’s clear that our driving force remains serving high-quality fresh ingredients and an extensive range of imported goods,” she noted.
Remaining relevant
In the ever-evolving retail landscape, Jaya Grocer is always looking for innovative ways to delight its customers.
One notable initiative was its collaboration with Grab Signatures to launch Jaya Grocer Private Labels. It featured beloved Malaysian brands like Village Park’s Nasi Lemak, and sales surpassed RM1 million ($210,000) by the end of 2023.
Through the brand’s presence on GrabMart, customers can benefit from deals and discounts from a membership program. Within just one year, the brand has garnered 1.5 million members.
“Through these examples, such as the collaboration with Grab Signatures in May last year, we aim to convey the ongoing nature of our commitment to staying relevant and exceeding customer expectations in an ever-changing retail landscape,” she stressed.
According to Foo, a key element of its differentiation strategy hinged on the introduction of its unique in-house Labels, such as The Baker’s Son bakery, which ensured a range of strong own-brand products.
“Furthermore, our exclusive partnership with Coles reinforces our commitment to offering premium choices. This collaboration showcases a selection of Coles house brand products as well as a wide range of Australian-made products,” she pointed out.
Digital transformation
The integration of online shopping into Jaya Grocer is now a pivotal aspect of the brand’s business strategy. Foo said that the ultimate aim is to make on-demand groceries more accessible to a broader audience.
“Through a synergistic partnership with Grab, we leverage their extensive on-demand delivery fleet and capabilities, combining them with Jaya Grocer’s strong retail presence and supplier network,” she explained.
Undoubtedly, Foo believes that technology will play a huge role in grocery retailing. Looking ahead, she recognises that technology-based solutions will shape the future of the sector.
“The ongoing collaboration between Jaya Grocer and Grab is poised to ride the next wave of app-based solutions, facilitating a seamless and convenient shopping experience from the comfort of one’s home,” she elaborated.
The partnership with Grab has not only enhanced the all-inclusive customer experience but also led to a notable increase in customer loyalty.
The market outlook
Anticipating a positive economic landscape in 2024, Foo reiterated that Jaya Grocer is ready to capitalise on the higher economic growth forecast projected by most research houses.
“According to the Rating Agency of Malaysia (RAM), Malaysia’s 2024 gross domestic product (GDP) is expected to grow between 4.5 per cent to 5.5 per cent, a notable increase from the estimated growth rate of 4.0 per cent in 2023. This data serves as a valuable reference point, aligning our strategies with the broader economic context,” she added.
With the buoyant economic outlook, Foo stated that Jaya Grocer is confident in executing its growth plans for the year.
“Notably, our expansion strategy includes the establishment of new outlets, surpassing the number achieved in 2023. This approach is a testament to our commitment to not only align with but also contribute to the positive economic trajectory, ensuring that Jaya Grocer remains at the forefront of meeting consumer needs and preferences,” she noted.
Supply chain resilience
At Jaya Grocer, a significant portion of its in-store products are imported from various parts of the globe, including Asia, Europe, Australia, the US, and Africa. Naturally, such a vast supply chain exposes the brand to potential disruptions.
“However, we maintain strict control measures and constantly strive to minimise any inconveniences to our customers. Our dedicated merchandising teams play a pivotal role in mitigating potential disruptions,” Foo pointed out.
According to her, they participate actively in advance planning, early order forecasting, particularly during peak festive seasons. Additionally, its teams conduct rigorous quality controls upon the arrival of goods, ensuring the items are up to the required standard for customers.
“We have nurtured strong relationships with our suppliers and farms worldwide to ensure a consistent supply of essential items, effectively reducing any potential disturbances in-store,” she opined.
When it comes to fresh produce, the brand works directly with local farmers, discussing in-demand fruits and vegetables that can be planted to offset any susceptibility to supply chain disruptions.
This direct collaboration not only supports local agriculture but also guarantees a steady supply of fresh and quality products for its customers.
Apart from this, sustainability is not just a consideration for the brand, it’s a guiding principle. For instance, the milk-on-tap initiative with Farm Fresh encourages consumers to buy fresh milk in returnable and reusable glass bottles.