Business

Thursday September 3, 2009

Courts: Electronics the way forward

By EILEEN HEE


It is preparing for further expansion in this segment

KUALA LUMPUR: Courts Mammoth Sdn Bhd sees “tremendous” growth in the digital and electronics market in the country, in which it has a 9% market share.

It has started to prepare for further expansion in the segment, said country director Chris Yong.

“All of our key stores will be led by digital and electronics,” he told StarBiz in an interview.

“Consumer purchase behaviour has shifted from what is was five years ago. Digital products are part and parcel of lifestyle and there is a wide acceptance of digital products in the country.”

In the six months to June this year, the retail giant posted a 25% year-on-year growth in its digital and electronics segment.

Chris Yong at the digital and electronics section of a Courts Mammoth store recently.

“The company achieved actual turnover (from January to June) of RM89mil for its digital and electronics business,” Yong said. “Even in this economic climate, our sales increased (after) we launched our digital revamp and expanded our IT range.”

Digital and electronics products contribute 70% of the company’s overall business today and have become “a major part of our business,” according to Yong.

Courts Mammoth has started its digital and electronics expansion by revamping the ground floors of all its outlets to include space for such products.

“You will be surprised. We also offer the latest range and latest technology is available first in our stores than other (competitors’) stores,” he said. “We have come up with a price charter, where daily we check our competitors’ prices.”

Courts Mammoth targeted the mass market, with 84% of its customers having household incomes of RM3,000 and below, while 60% bought on credit terms and the remaining were cash customers, he added.

Yong said Courts’ competitive advantage lay in its credit business, which made its products affordable and accessible to the public.

“Our offerings are the best value. We are the only one in the market that can offer LCD TVs at RM9.99 per week under a term purchase package,” he said.

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