HYPERMARKET operator Mydin Mohamed Holdings Bhd plans to open 50 MyMydin outlets every year as part of plans to grow its mini market chain. This year alone, more than 20 outlets have opened and todate, 52 MyMydin shops serve the people in the Klang Valley. Mydin Mohamed Holdings managing director Datuk Ameer Ali Mydin (pic) said the mini market was a format the company was looking forward to develop in suburban areas.
"We concentrate in the Klang Valley for the next two years, then go into other suburban areas in main cities, such as Malacca." He said the business of a mini market may look simple operationally but like in any retail business, the margins are low and the supply chain efficiency will make or break the business. Ameer told The Malay Mail that although MyMydin makes up only 12 per cent of the group’s total turnover, it was a market the company must not ignore. "As a country develops and as people get busier, convenience matters. Gone are the days when we wait for customers to come to us. Instead, we go to them, just like our tagline "Closer to you" where we want to be near our customers. "MyMydin tries to provide not only low prices but also hygienic stores with simple and important stock-keeping units for everyday living. "Compared to the usual mini markets of 500sq ft to 800sq ft, MyMydin outlets are generally bigger at 3,000sq ft to 5,000sq ft offering a combination of fresh food and groceries.” With the rapid growth of MyMydin outlets, Mydin is conscious the opportunity needs to be given to entrepreneurs to run a business of similar concept.
Via MyMydin's franchise scheme, a franchisee would require RM1.2 to RM1.5mil as start-up for an outlet. At the moment, two MyMydin outlets have been franchised and the company continues to receive enquiries from entrepreneurs. "A lot of people like to open convenience stores but over time, they tend to fail because they have a lack of experience in running a retail business. They also lack product knowledge and an efficient supply chain management." Ameer said businesses also flopped as operators were unable to obtain goods in bulk to get better, lower costs, as well as their lack of system understanding.
He also identified high pilferage as one of the contributing factors. Ameer said when people considered the amount of investment, the long operational hours and the low profitability of the business, the perception of making quick money made it an unattractive venture."Retail business is a brick and mortar business. It will always be there to serve the needs of consumers and it is a recession-proof business. I suggest entrepreneurs think long-term and be assured money can be made in retail business."