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Mydin Mohamed Holdings looks to sell off Sam’s Groceria stores

Mydin Mohamed Holdings (MYDIN) is reportedly looking for a buyer for its premium chain Sam’s Groceria stores, as part of its ongoing internal reorganisation , said managing director Datuk Ameer Ali Mydin. Reported on  The Edge, he also estimated the grocery business to worth about RM50 million.

The group currently owns four Sam’s Groceria outlets, located at Penang’s Gurney Paragon Mall and Straits Quay, as well as, Sunway Carnival Mall in Seberang Perai and Nu Sentral, according to its website. The news comes after the retailer and wholesaler disposed its struggling MyMydin convenience store business in April last year. The group also discontinued the Kedai Rakyat 1Malaysia (KR1M) stores in October 2017.

Datuk Ameer told The Edge that the company decided to sell Sam’s Groceria after realising that the stores’ patrons are majority local Chinese and expatriates. However, the stores do not sell liquor, wine, beer or pork and thus was unable to meet the needs of its consumers.

Companies Commission of Malaysia also revealed that Sam’s Groceria is making losses, after posting a net loss of RM27.49 million on revenue of RM63.16 million in FY16. Sam’s Groceria also has accumulated a total of RM101.8 million in liabilities, of which RM84.54 million are current, according to the local publication.

Last month, Datuk Ameer was also reported saying that he expects “flattish to minimal growth” in the local retail industry this year. However, he hopes that the upcoming general election would help to improve consumer spending. MYDIN posted its first loss in six decades in the financial year ended 31 March 2016 (FY16), no thanks partly due to the weakening Ringgit. It reported a net loss of RM156.61 million on revenue of about RM3 billion.

The group has 62 stores under its portfolio, excluding Sam’s Groceria premium stores, according to Datuk Ameer. MYDIN opened its first flagship 23,000 sq ft SAM’S Groceria store in Gurney Paragon Mall in 2013. In 2016,  Mydin Mohamed Holdings forked out RM500 million to open five new hypermarkets nationwide.

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