Kenanga cautious over MyNews' CU outlet roll-out

KUALA LUMPUR: Kenanga Investment Bank Research is cautious over MyNews Holdings Bhd's move to introduce consumer value store brand CU to Malaysia due to the likely cannibalisation between the outlets and the execution risks.

"Though management argues that CU’s distinct product offerings (i.e., own private label Heyroo and exclusive Korean products) and store location positioning would allow them to differentiate themselves from the existing players, we are nonetheless concerned over the possibility that the new CU outlets would overcrowd the already competitive consumer value store space and cross-cannibalise its existing MyNews brand.