Business

Monday February 9, 2009

Carrefour to open 100 more Express stores

By EILEEN HEE


KUALA LUMPUR: Carrefour Malaysia Sdn Bhd expects to set up 100 more Carrefour Express stores in the Klang Valley by year’s end.

According to convenience store director Mohamed Salim Mohd Ali, the stores would operate on a business model based on a 100% franchise system that would be managed by Carrefour Malaysia.

“Carrefour Express is a fusion of the hypermarket and convenience store,” he told StarBiz.

He said an express store would have 10% of the 8,000-10,000 sq m floor space of a typical hypermarket, but would still carry almost 4,000 items.

Mohamed Salim Mohd Ali

He said the unique selling point of the stores was that they would house more Carrefour brand products.

He added that the concept was already very popular in Europe with almost 4,800 Express stores there.

In Malaysia, the first Carrefour Express outlet was opened in March 2008 in Wangsa Maju. The other four outlets in operation are in Subang, Ampang, SS2, and Jalan Othman.

Salim said that while hypermarkets continued to chart strong expansion in the country, convenience stores were experiencing much higher growth and hence Carrefour saw this as a opportune time to grow its express store franchise chain.

“There has been a 19% growth in terms of sales value for the convenience stores sector. Meanwhile, provision shops, which are mainly moving to the third generation, are expected to eventually evolve into convenience stores,” he said.

He said provision stores commanded 44% share of the grocery market and convenience stores only 3.2%.

“Carrefour Malaysia will share its experience and expertise with local entrepreneurs for them to grow the business,” Salim said, adding that those interested to become retailers would have to fork out about RM150,000 to RM500,000.

Grand prize winner Mastura Baharum

“So far, hundreds of interested parties have enquired about the franchise,” he said, adding that in uncertain times, franchising could be a viable avenue.

He said Carrefour Express’ franchise model adopted a unique system where every frachisee would break even within 36 months. “Retailers can expect a 3%-6% return of gross sales,” he said.

In September, the company launched the search for entrepreneurs via Carrefour Duniaku2, Malaysia’s first hypermarket reality TV programme.

Mastura Baharum was announced contest winner and won a Carrefour Express store franchise worth RM500,000.

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