PETALING JAYA: MR DIY Group (M) Bhd will continue with its expansion plan to set up 175 stores nationwide this year despite challenges arising from the Covid-19 pandemic.
Chief executive officer Adrian Ong (pic) said the group has been utilising data to boost its business model that helps to search for new store locations and sizes and to curate products at its stores depending on the demand and location.
MR DIY operated 827 stores nationwide as of June 30.
“Our main focus is to provide convenience at lower prices, which we can do because of economies of scale as we purchase products directly from the manufacturers.
“With data, we can curate each of our stores and we also can react very quickly to adjust our procurement and inventory according to market demand,” Ong said at the MIDF Conversations series webinar yesterday.
He was using an example of hair clippers that have been one of MR DIY’s top sellers during the pandemic as salons and barbershops were closed.
Ong pointed out that the pandemic pushed its products as people can’t call contractors to their home for repairs.
The work-from-home arrangements have supported its sales as consumers are looking for home-office equipment such as adapters and other electrical items, he added.
In addition, Ong said that by using data, MR DIY could strategise its store openings, especially in remote areas, to decide between a full-fledged store or a smaller shop like “Mr DIY Express”.
“We curate these stores based on data including the items in the store. We are able to bring modern retailing throughout the country,” he said when MIDF group managing director Datuk Charon Wardini Mokhzani asked why MR DIY has three stores in Perlis alone.
Ong said the group is poised to meet its target of opening 175 stores nationwide despite many retailers are on consolidation mode due to softening consumer market because of the pandemic.
He is confident that customer traffic will improve with the relaxation of the movement control order and expects the retail industry to bounce back post-pandemic.
“We have no plan to reduce the number of our stores. In fact, we are doing quite the opposite. We have added about 93 stores in the first half of the year. We will catch up on store openings once conditions allow us to do so,” he said.
Interestingly, while many retailers have moved their operations online and through e-commerce platforms, Ong said the bulk of MR DIY’s business is from its stores while e-commerce only made up a fraction of its total revenue.
For the second quarter ended June 30, 2021, the group posted a net profit of RM82.13mil, up 44.14% from RM56.98mil in the same quarter last year.
Being deemed an essential goods retailer, most of its stores have been allowed to stay open during the pandemic, according to Ong.
