DFI Retail Group has announced its strategic growth initiatives for the next three years, which will include developing a franchise model and introducing more own brands.

The Hong Kong-based group said the plans would position it to better serve customers across Asia’s diverse markets, while delivering double-digit profit growth.

Among the key initiatives is the expansion of the health and beauty and convenience store network through a capex-light franchise model.

The group’s health and beauty division operates the Mannings chain in Mainland China, Hong Kong and Macau, and Guardian stores in Indonesia, Malaysia, Singapore and Vietnam. Its convenience store network includes 7-Eleven locations in Hong Kong, Macau, Southern China and Singapore.

The company will also launch more own-brand products, focusing on affordable, high-quality choices that meet Asian consumers’ growing demand for value.

Other initiatives include growing store sales density, leveraging customer data insights for digital growth, and maintaining rigorous capital allocation and cost efficiency.

“Customers across Asia are increasingly seeking quality and convenience at great value,” said Scott Price, CEO of DFI. “With our broad format portfolio and omnichannel capabilities, we can meet these needs effectively across all channels.”

In line with these objectives, the group expects to deliver an underlying profit CAGR of 11-15 per cent, with an ambition to achieve US$310-350 million by 2028. It also targets organic subsidiary revenue growth of 2-3 per cent annually through 2028, as well as online sales penetration of 7-10 per cent by 2028.

“Our strong balance sheet and disciplined use of capital give us the flexibility to invest in growth while consistently increasing returns to shareholders in the years ahead,” Price added.

As of December 1, DFI and its associates operated over 7400 outlets across 12 markets. The group reported double-digit profit growth despite flat sales growth in the fiscal first half.