Senheng New Retail Berhad (Senheng) noted that consumer electronics demand had returned to pre-COVID levels as the Group reported RM318.4 million revenue in the first quarter ended 31 March 2023 (1Q23).
On a year-on-year basis, 1Q23 revenue dipped 13.3% from RM367.3 million in the previous corresponding quarter, while net profit stood at RM6.2 million compared to RM8.9 million previously.
Even so, Senheng Executive Chairman Lim Kim Heng said that the Group would continue on its ‘Territory Champions’ strategy to set up a total of 61 new and/or upgrade its existing stores nationwide till 2024 to enrich in-store experiences and boost per-store sales.
The Group plans to launch 26 new/upgraded Senheng and senQ stores formats in 2023, up from 16 launches in 2022. On top of that, Senheng is opening 40 new Senheng Mobile stores, a new retail channel specifically catered to consumer demand for mobile phones and digital gadgets.
“As a Group, Senheng has undergone numerous phases of transformation in our corporate history of more than three decades. In each instance we have shown tremendous grit, by pooling our resources and adapting our strategies to strengthen our fundamentals to suitably position Senheng to capture the eventual consumer uptick,” said Lim.
“Hence, we will adopt the similar approach this year, as we set up and upgrade store formats as well as create a new retail channel to help boost Senheng’s brand visibility and nearness to end-users. At the same time, we will leverage our Artificial Intelligence (AI)-enabled platform to further engage customers through online marketing campaigns, and introduce more rewards and promotional activities to enhance the customer experience further,” he said.
According to Lim, there are current indicators of improving sentiment in recent months, with an increase in purchases and in membership registrations and renewals in their new PlusOne loyalty programme. This positive trend aligns with rising confidence and expectations of easing inflationary pressures and unemployment rates. He said the organisation aims to remain resilient in the current financial year.