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Malaysian home improvement retailer Mr. DIY disclosed a 15.6 per cent rise in sales during the first quarter of 2023 buoyed by its aggressive store expansion last year. The group, which owns and operates eponymous stores in Malaysia - where it is the top home improvement brand, commanding a 41.8 per cent market share - and Brunei, posted revenues of 1.046 bn Malaysian ringgit (MYR, 213.9 mio euros) during the period.
“The increase was primarily driven by an increase in the number of stores, which grew 18.8 per cent year on year, taking the total number of stores to 1,125”, the company stated in its financial report. The additional stores in turn resulted in more tills ringing, with transactions across all outlets growing 18.1 per cent to 38.2 million during the period, it added. Price increases that were imposed in the third quarter of 2022 as well as stabilising freight costs resulting from the easing of global container and vessel disruptions helped. The Malaysian operations contributed the bulk of the sales, at MYR 1.041 bn, while Brunei contributed MYR 11.08 mio. The first quarter performance was 1.8 per cent slower compared to the end quarter of 2022, when seasonal factors including the Christmas season and school holidays supported retail.
In a statement, Adrian Ong, Mr. DIY chief executive, said that the group is “cautiously optimistic” of its prospects as inflation concerns places the company in a position to benefit from demand for affordable products. “The more favourable freight environment also favours a better performance going forward,” he added.
The company, which also operates a toy store and a fixed-price retail concept, earlier announced a “measured” expansion plan for 2023 that will see 160 of the 180 stores - or close to 90 per cent - it looks to open operating under the home improvement brands Mr. DIY, Mr. DIY Plus, and Mr. DIY Express. Only 20 of the planned outlets will be under the Mr. Toy and Mr. Dollar brands, it had added.
