Mydin Is Selling Off Its Premium Grocery Store SAM's Groceria
SAM's Groceria is up for sale
The Edge Financial Daily reported on Monday, 8 January, that local hypermarket operator and retailer Mydin Mohamed Holdings Bhd is looking to dispose its loss-making SAM's Groceria stores.
The first SAM's Groceria outlet opened its doors in Penang back in 2013 as Mydin Holdings ventured into the high-end market segment.
There is a total of four SAM's Groceria stores nationwide today: One each in Gurney Paragon Mall, Straits Quay and Sunway Carnival Mall in Penang, and Nu Sentral in Kuala Lumpur.
According to its managing director Datuk Ameer Ali Mydin, the grocery business is estimated to be worth RM50 million.
The decision to sell SAM's Groceria came about after Mydin recognised that the premium grocery store has failed to meet market demands
SAM's Groceria, in which SAM stands for 'Saya Anak Malaysia', prides itself in offering customers a wide selection of products - more than 18,000 items - of which, 60% are fully-imported brands.
Despite this, customers may have turned to its competitors due to the hypermarket's limitations in serving its current consumer demographic.
"We decided to sell SAM's Groceria after realising that the stores' patrons are mainly local Chinese and expatriates. (However,) we do not sell liquor, wine, beer or pork at our stores and thus, we have been unable to meet our customers' needs," Ameer explained to The Edge Financial Daily.
Mydin stated on its official website that it "operates its business based on the 'halal' concepts and stresses on honesty, sincerity and good discipline in all aspects of its business."
The sales is part of the company's ongoing internal reorganisation plans
Leading credit rating agency in Malaysia, Ram Ratings, said last month that Mydin Holdings had incurred substantial losses as it was having difficulties adopting appropriate pricing after GST was introduced and the government implemented anti-profiteering measures.
It was the resolution of pricing issues in mid-FY March 2017 that resulted in improved earnings and operating losses narrowed.
According to the report by The Edge Financial Daily, MyMydin Holdings sold its loss-making MyMydin convenience store business to Jubilee Games Sdn Bhd in April 2017. Mydin Holdings was also operating Kedai Rakyat 1Malaysia (KR1M) through its subsidiary, MRT Retail Sdn Bhd, until it discontinued operations October 2017.
Besides SAM's Groceria, the well-established Malaysian company currently has 62 other stores.