Timeline | Description |
1968 | The Store Corporation was founded in Bukit Mertajam, introducing modern supermarket retail to secondary towns. |
1994 | The Store listed on the Kuala Lumpur Stock Exchange(KLSE), gaining access to capital for nationwide expansion. |
2001 | The Store acquired assets from Fajar Retail Enterprise and Pacific, rapidly expanding its store network and market reach. |
2005 | Acquisition of Milimewa extended The Store presence into East Malaysia, completing its national footprint. |
2017 | Tan Sri Tang Yeam Soon led the privatisation of The Store, taking it off the stock exchange to unlock asset value. |
2019 | The group launched Super Jimat to compete with low cost retailers, leveraging existing property assets. |
2024 | Pacific stores were repositioned into hybrid grocery and department formats, reflecting a shift towards asset optimisation. |
Context
The Store Corporation was once the largest supermarket and department store chain in Malaysia, built on a strategy that combined retail operations with strategic property accumulation. From its origins in secondary towns, it expanded into a nationwide network through aggressive acquisitions. Today, its story reflects a shift from retail dominance to asset driven repositioning in a rapidly evolving consumer landscape.
Deep Dive
In 1968, The Store Corporation was established in Bukit Mertajam. At a time when retail was dominated by small provision shops, the founder introduced a modern supermarket format tailored to secondary towns. The early success validated his thesis that suburban and semi urban populations represented an underserved but sustainable consumer base.
In 1994, The Store Corporation was listed on the Kuala Lumpur Stock Exchange(KLSE). The listing provided capital to accelerate expansion and positioned the group to pursue acquisitions. It marked a transition from organic growth to a more aggressive, capital driven strategy.
In 2001, The Store executed a defining expansion through the acquisition of distressed assets from Fajar Retail Enterprise. The transaction focused on securing strategically located stores rather than preserving the brand. In parallel, it integrated Pacific, a higher end retail operator, enabling the group to diversify its market positioning. These dual acquisitions significantly expanded its footprint across Malaysia.
From 2001 to 2005, The Store consolidated its dominance in secondary towns and extended its reach into East Malaysia through the acquisition of Milimewa. With multiple retail formats under its umbrella, the group built a network of nearly 100 outlets, becoming the largest supermarket chain in the country at the time.
In 2017, a major strategic shift occurred when Tan Sri Tang Yeam Soon led a privatisation exercise through TYS Consolidated. The Store Corporation was taken private and delisted. The move was driven by persistent undervaluation in public markets and the recognition that its extensive property portfolio held significant latent value.
From 2017 to 2019, the group repositioned itself as a low profile asset holder while maintaining its retail operations. The rise of discount chains such as 99 Speedmart intensified competition. In response, The Store launched Super Jimat, a fixed price retail format designed to drive footfall using existing properties with minimal capital expenditure.
In 2024, the group initiated a further transformation by upgrading Pacific outlets into hybrid formats combining grocery and department store concepts. This repositioning aimed to maximise utilisation of its ageing retail assets while adapting to changing consumer behaviour, particularly the demand for integrated shopping experiences.
Key Takeaway
The Store evolution highlights a fundamental shift from retail operator to asset manager. Its early success was driven by location strategy and acquisition discipline, but structural changes in retail have reduced the importance of traditional department store models. Today, its competitive edge lies less in merchandising and more in the strategic value of its property portfolio. The outcome of this transition will depend on its ability to monetise these assets in a market shaped by new consumption patterns.
FAQs
1. What made The Store successful in its early years?
It focused on underserved secondary towns and built a strong network of strategically located outlets.
2. Why did The Store acquire Fajar and Pacific?
To expand rapidly by acquiring prime retail locations and diversify its market positioning.
3. Why was The Store privatised in 2017?
The group was undervalued in public markets and sought to unlock the value of its property assets.
4. How is The Store responding to modern retail competition?
It introduced low cost formats like Super Jimat and upgraded stores into hybrid concepts.
5. What is The Store main strength today?
Its extensive portfolio of strategically located properties across Malaysia.
