Backed by its continued capital expenditure (CAPEX) to upgrade and expand its retail stores and enhancement on its warehousing and distribution network, the retailing chain Senheng is optimistic of increasing its market share in the consumer electronics retail sector in Malaysia.
During the Annual General Meeting of the group today, Executive Chairman Lim Kim Heng shared that the Group will spend RM74.3 million CAPEX in 2022.
“We are on track to meet our 2022 store launch target, as we execute our expansions swiftly to capture more opportunities amid the recovery in consumer spending. This will support our target of doubling the Group’s market share from 13% in 2020 to 30% in 2025,” Mr Lim Kim Heng, Executive Chairman of Senheng said.
“The latest expansions included our three refreshed retail brands, Grand senQ in Paradigm Mall Johor Bahru, senQ Elite in Pavilion Elite Bukit Jalil, and Grand Senheng Elite in SS2, Petaling Jaya. These represent our largest and most modern stores to date, providing a comprehensive range of consumer electronics to discerning customers.”
“The ongoing retail store upgrades and expansions will complement our seamless integration of personalised digital marketing initiatives, e-commerce, Senheng App ecosystem, as well as efficient logistics. These factors, combined to form a highly satisfying omnichannel shopping experience, distinguishes us from our competitors in the retail sector,” he stressed.
The majority of CAPEX will be used to launch 21 new/upgraded stores in 2022, amounting to RM49.0 million for the year.
The Group’s latest store formats on average fetch 30%-50% higher per-store sales, compared to its existing Senheng and senQ stores. The number of new stores for 2022 represent approximately one-third of its total 61 outlets planned from 2022-2024.
Meanwhile, the remaining RM25.3 million was used to acquire a 2.9-acre land in Bandar Bukit Raja, Selangor in May 2022, which will support future expansion and upgrading of the Group’s warehousing and distribution network.