Aeon Big embarks on new business strategy

SUBANG JAYA: Hypermarket chain, Aeon Big Sdn Bhd (Aeon Big), is preparing for a big leap into 2018 with a new business strategy that revolves around consolidating its hypermarket chain and focusing on a single business format.

“With a new company vision, changes are bound to occur and these changes mean that we need to re-evaluate our business format and approach. We target to ensure that we meet objectives within the policies we have set out,” Aeon Big managing director Masayoshi Masuda told a press conference here yesterday.

“The company is focusing on key areas that have proven to be key assets within the hypermarket chain,” he added.

Aeon Big is in the process of shutting down three outlets in Rivercity, Bangsar South and Kota Damansara as part of its cost-cutting measures.The process is expected to be completed by the first quarter of this year.

“With the changing climate in customer behaviour and the wider economic changes, these stores are no longer viable.

“The changes are a part of our long-term strategy to rebrand and reorganise our hypermarket chain to ensure higher returns while keeping daily operational costs at a manageable level,” Masuda said.

Big leap: Aeon Big director A.Rashid Adam (left) and Masuda at the press conference. Masuda says the company needs to re-evaluate its business format and approach

He cited the implementation of the goods and services tax and higher import prices as reasons for changes in customer behaviour.

He also added that the employees from the affected stores would be redeployed to other stores. Aeon Big is a subsidiary of the Aeon Group.

Aeon Co Ltd, the holding company for Aeon Group, purchased the shares of Magnificient Diagraph Sdn Bhd (Carrefour) in October 2012. Following the acquisition, Carrefour’s name was changed to Aeon Big.

The acquisition was part of Aeon group’s plans to expand the business in South-East Asia and further develop its Asian operations.

Aeon Group encompasses over 250 companies and business entities in 12 business segments.

Masuda has been appointed as the new managing director of Aeon Big since last November. He took over from Mitsuru Nakata, who relinquished his position effective Nov 14 last year.

Masuda has more than 30 years of experience in the retail industry and was formerly the MD for Japanese department store Maxvalu Nagano. He has been with the Aeon group in various positions since 1983.

In a November, Aeon Big said that Masuda “is the perfect candidate” to lead the company to greater heights due to his impressive retail background and knowledge in the industry.”