Eco-Shop eyes further expansion after strong 3Q results
Citing a report from Frost & Sullivan GIC Malaysia Sdn Bhd, the group said Malaysian dollar store retail sector penetration remains relatively low compared to more mature markets such as Japan, Canada, and the United States, and in terms of sales value, this sector is expected to grow at a compound annual growth rate of 14.2% in the next five years from to 2029.
Releasing its results for the third quarter ended February 28 yesterday (3Q25), Eco-Shop saw net profit soar 45% year-on-year (y-o-y) to RM61.7mil, as revenue also increased 17.2% to RM736.4mil.
The group attributed its turnover growth primarily to the expansion of its store network, with the opening of 26 new stores in 3Q25 compared to 14 in the corresponding period of last year.
'The total store count increased from 278 stores in 3Q24 to 349 stores in 3Q25. Additionally, the group's revenue was supported by a modest increase in same store growth (SSSG) of 0.6%,' said Eco-Shop in a statement to Bursa Malaysia.
At the same time, the strong profit margin was attributable to a more favourable product mix and the strengthening of the Malaysian ringgit against the Chinese yuan.
Cumulatively for the nine months ended February (9M25), Eco-Shop posted a net profit y-o-y growth of 35.9% to RM154.9mil, as revenue escalated 19% to RM2.1bil.
Eco-Shop said the strong performance over the three quarters was mainly due to the opening of 59 new stores during the period and an SSSG of 2.1%, aside from the strengthening of the ringgit against the yuan that also helped improve profitability.
The group did not declare any dividends for the year.
Looking ahead, Eco-Shop said it will continue to be vigilant and well-prepared to manage various cost and risk factors, including the upcoming electricity tariff hike effective from July 1, the implementation of the multi-tier levy system that could increase the cost of hiring foreign workers, and the enforcement of a mandatory 2% Employees' Provident Fund Board contribution for non-citizen employees.
'As our store network continues to grow, we anticipate greater demand for distribution and storage capabilities. To support this, we plan to strengthen our logistics infrastructure in Peninsular Malaysia.
'Construction of a semi-automated distribution centre on a 307,560 sq m
site in Klang, Selangor is expected to commence in the first quarter of 2026, with completion targeted for the financial year ending May 31, 2027,' it said.
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