99 Speedmart is a rapidly expanding chain of mini-markets in Malaysia, renowned for offering a wide range of daily essentials at competitive prices. Established in 1987 by Lee Thiam Wah as a traditional sundry store in Klang, Selangor, the company has grown significantly over the decades. By 2024, it operates over 2,500 outlets nationwide, making it one of Malaysia's leading retail chains.
The company's mission is to provide customers with convenient access to affordable products, embodying its slogan "NEAR n' SAVE." This commitment is reflected in its strategic placement of stores in various neighborhoods, ensuring accessibility for a broad customer base.
In September 2024, 99 Speedmart made a significant milestone by debuting on the Malaysian stock market, raising approximately 2.36 billion ringgit ($542.8 million) in the largest domestic initial public offering (IPO) in seven years. The funds are earmarked for further expansion, with plans to open about 250 new stores annually, aiming to reach around 3,000 outlets by 2027.
The company's growth strategy includes establishing multiple distribution centers across Malaysia, enhancing its supply chain efficiency and ensuring consistent product availability. This infrastructure supports its extensive network of outlets and contributes to its ability to offer competitive pricing.
99 Speedmart's success is attributed to its focus on customer satisfaction, strategic expansion, and efficient operations. Its evolution from a single sundry store to a leading retail chain underscores its significant role in Malaysia's retail sector.
However, the group’s revenue surged by 8.8%, reaching RM2.55 billion, compared to RM2.34 billion in 3Q 2023, primarily driven by its expanding outlet network, according to the company’s filing with Bursa Malaysia.
Growth in Outlets and Transactions
During the quarter, 99 Speed Mart added 51 new outlets, bringing its total network to 2,697 outlets as of Sept 30, 2024.
Key highlights for the quarter include:
- Total sales transactions rose 11.9% year-on-year (y-o-y) to 120.2 million transactions, up from 3Q 2023.
- Average basket size decreased by 2.8%, dropping to RM21.20.
The company also credited its bulk sales online platform, launched in December 2023, for contributing RM7.4 million in incremental revenue. This platform expanded beyond the Klang Valley to the southern region of Peninsular Malaysia in July 2024, enhancing its reach and impact.
Nine-Month Performance
For the nine-month period ended Sept 30, 2024 (9M 2024):
- Net profit rose to RM365.84 million, compared to RM293.69 million in 9M 2023.
- Revenue increased to RM7.39 billion, up from RM6.80 billion in the same period last year.
Outlook
99 Speed Mart remains committed to expanding its outlet network across Malaysia while focusing on optimizing revenue and improving operational efficiency. The company’s emphasis on leveraging digital platforms and streamlining operations positions it for sustained growth despite challenges such as reduced average basket sizes.
This strategy underscores its resilience and adaptability in the competitive retail landscape.
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