Al-Ikhsan to set aside RM40m for 12 new stores
SPORTS goods retailer Al-Ikhsan Sports Sdn Bhd aims to open 12 new outlets with an investment of RM40 million in the first half of next year to improve its earnings.
The company, set up in 1993, is targeting to achieve RM300 million in sales in 2012 and RM500 million in 2015.
"We are quite bullish on the outlook, hence we are planning to open 100 new stores from now until 2015," acting country manager Yuremi Mohd Nor said last week at the opening of the company's 100th outlet in Malaysia in Bukit Bintang Plaza, Kuala Lumpur.
For fiscal 2011, the firm anticipates RM215 million in sales, he said.
Yuremi said Al-Ikhsan will be using its internally generated funds for the expansion.
Al-Ikhsan carries multi-brand concepts such as Nike, Adidas, Puma, Lotto, Umbro and Reebok.
Its existing 100 stores are segmented into four categories - flagship, which carries the highest grade or branded products; urban for the medium income group; rural with products priced below average; and factory outlets.
"We went through a series of transformation in the last six months and came up with a strategy to make available sporting goods for all income groups and it has augured well for us," he said.
On overseas expansion, Yuremi said Al-Ikhsan has been invited by several retailers including Jusco, to set up shop overseas but there is currently nothing on the table.
"We do have intentions to go overseas. Vietnam is on our radar. It is an emerging market which nobody wants to miss, but our current focus is to expand in Malaysia first," he said.
Yuremi said the company has a close working relationship with Jusco. "If need be, we will go where they are currently," he added.
On plans to list Al-Ikhsan, Yuremi said the company's founder, Ali Hassan Mohd Hassan, has no intention to float the company's shares at the moment.
Source : New Straits Times
Date : 20 December 2011
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