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7-Eleven Malaysia introducing new cafe-lifestyle concept, including seating areas

Updated: Monday June 23, 2014 MYT 7:16:01 AM

7-Eleven introducing new cafe-lifestyle concept, including seating areas

BY LIZ LEE

KUALA LUMPUR: Through its plans to expand network and refurbish some selected stores, 7-Eleven Malaysia Holdings Bhd targets to introduce a new concept in 200 outlets in the next three to four years.

The new store format, deputy chief executive officer Gary Brown said, was to offer a lifestyle concept similar to a neighbourhood cafe for the convenience store chain.

Among the selling points of the new concept stores are the array of fresh food and beverages as well as seating areas.

“The next generation of stores will be available in key cities in the Klang Valley, Penang and Johor. It is not possible to provide fresh food in every outlet because we have to look at the right demographic and store location,” Brown said at the opening of the 1,600th 7-Eleven store in Malaysia.

In the Klang Valley, he expected there to be at least 150 of these new concept stores.

The company has set aside RM80mil for 200 new stores and 200 refurbishments this year.

It intended to invest some RM520mil over the next three years for its business expansion which include opening 600 new stores nationwide, refurbishing some 600 existing stores, improving its IT system and setting up a new 166,000 sq ft combined distribution centre in Shah Alam. For refurbishment, RM27.3mil will be funded from its initial public offering proceeds and the rest through internally generated funds. The chain will also expand more aggressively in Sabah and Sarawak where it currently has a combined 68 stores. The stock closed last week’s trade at RM1.90, up 38% from its initial public offering price of RM1.38.

 

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KB Kee is the Managing Editor of the Moat Report Asia (www.moatreport.com), a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia; subscribers from North America, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, some of the world’s biggest secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing. KB has been rooted in the principles of value investing for over a decade as an analyst in Asian capital markets. He was head of research and fund manager at a Singapore-based value investment firm. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. He was previously the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic and industry trends, and detecting accounting frauds in Singapore, HK and China. KB was a faculty (accounting) at SMU teaching accounting courses. KB is currently the Chief Investment Officer at an ASX-listed investment holdings company since September 2015, helping to manage the listed Asian equities investments in the Hidden Champions Fund. Disclaimer: This article is for discussion purposes only and does not constitute an offer, recommendation or solicitation to buy or sell any investments, securities, futures or options. All articles in the website reflect the personal opinions of the writer.

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