7-Eleven planning to open more stores in Malaysia

7-Eleven planning to open more stores in Malaysia

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The latest reports state that 7-Eleven Malaysia Holdings Bhd is all set to invest 520 million ringgit in the upcoming three years. The store operator is planning to add more stores to its network, refurbish the current ones, as well as improve its information technology systems and distribution options. 

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Chairman Lena Tan stated that the capital expenditure will be funded from the initial public offer proceeds and also from its constant cash flow and funds which are generated internally. The move will be made as part of the company’s immediate expansion strategy, according to which 7-Eleven is scheduled to allocate about 80 million ringgit on a yearly basis in order to set up about 200 brand new convenience stores, in addition to refurbishing the selected ones. Moreover, the company is planning to launch around 600 stores until 2016.

Tan added, “Our business has always been cash-generative and that is how we have been able to fund some of the new stores in the past”. The chairman also said that the company is aiming to invest between 270 million ringgit and 280 million ringgit in the upcoming two years.

The founder of Berjaya Group and tycoon owner of the franchise Vincent Tan explained that 7-Eleven still has plenty of room to realize its full potential to move forward.

Photo Credits: IB Times