KUALA LUMPUR (June 9): 99 Speed Mart Retail Holdings Bhd (KL:99SMART) anticipates its decision to bring forward its outlets' daily opening hours by one hour to 9am starting July 1 to increase foot traffic and boost sales.
The mini-market chain operator, which has about 2,800 stores across Malaysia and operates a 12-hour shift that starts at 10am, said it had identified missed sales opportunities as some customers sought earlier shopping options and turned to other stores.
It announced the changes in opening hours last week, “to enhance customer convenience and better align with shopping patterns".
“With the earlier opening, we anticipate an increase in foot traffic and sales. However, it's still early to quantify the exact uplift, as we need to monitor the performance over time to gather meaningful data,” its chief operation officer Yong Eng Kwang told The Edge.
“Longer operating hours will allow us to serve our customers over a broader time window, giving them greater flexibility in planning their purchases. It also increases our brand visibility and customer touchpoints throughout the day,” Yong added.
In the long run, Yong believes the move will enhance customer satisfaction and loyalty, contributing positively to the group’s brand and business growth.
There will be minimal impact on overall headcount, Yong said, as the group's two-shift staffing system will remain in place, with only the morning shift staff having to adjust to an earlier start and end time.
“That said, if we see a surge in customer traffic and demand increases, we are prepared to hire and reallocate staff accordingly to maintain service quality,” Yong added.
On Monday, the group announced the emergence of the Employees Provident Fund (EPF) as its substantial shareholder after it acquired a 5.02% stake. This is the first block of shares that EPF holds in 99 Speed Mart, which was included on the KLCI component stocks list in December last year.
The vendor and transaction price were not disclosed in the filing. Based on the closing price of RM2.06 on June 4, the block of shares was valued at RM868.89 million.
99 Speed Mart’s chief executive officer Lee Thiam Wah is the single largest shareholder, controlling 79.68% equity interest in the company founded by him.
99 Speed Mart recorded a 7.53% year-on-year (y-o-y) increase in net profit to RM143.18 million for its first quarter ended March 31, 2025 (1QFY2025), driven by stronger retail sales and network expansion. Revenue rose 7.66% to RM2.61 billion from RM2.43 billion in 1QFY2024, its filing last month showed.
According to Bloomberg data, eight out of 10 research houses covering the stock recommend a "buy", while two have it on "hold". The average 12-month target price is RM2.57.
Shares in 99 Speed Mart closed one sen or 0.48% higher at RM2.10 on Monday, giving the group a market capitalisation of RM17.64 billion. Year to date, the counter is down nearly 15%.
The group made its Main Market debut in September last year at an initial public offering price of RM1.65 per share. The stock hit a high of RM2.58 last December.