THE old adage, “when going gets tough, the tough get going” still rings true in today’s challenging economic climate.
Lim said they both had a synchronised idea of taking the Sogo group forward.
“Through a 50:50 joint venture, we hope to bring an additional layer of excellent retailing into the Malaysian context by offering international and domestic shoppers a wholesome shopping experience,” he said.
Speaking about the country’s retail industry, Lim noticed a lack of quality retailing.
“In order to have a vibrant retail industry in Malaysia, we must have different niches – mass retailing as well as quality retailing,” he said.
Lim further explained that quality retailing means offering a better grade of goods and services at value-for-money prices.
“As consumers trade up, they will be looking for quality merchandises that commensurate with their income and status.
“Apart from that, the country also has a plan to upgrade Malaysia to a first-world economy and as such, the retail services will figure prominently.
“Based on all these assumptions, we are positive about the retail industry in Malaysia, despite current sentiments.
On the outlook of the retail industry, Lim pointed out that the focus of decision-making had shifted from big stores to individual customers.
“Gone are the days when store merchandises are laid out on the racks and customers will just walk in and purchase.
“The thrust of retailing now has to be customer-relevant.
“Millennials and internetters change their tastes very fast, and to serve this generation of shoppers, we have to intensively tweak our merchandise offerings on a weekly basis.
“What will distinguish us as a quality retailer is by offering a personalised shopping service and rapid response to customers’ changing needs,” said Lim.
With an investment of up to RM30mil each flagship store, the stores will be located within prominent commercial developments in capital cities of the country.
“Each of these stores will have at least 18,581sq m (200,000sq ft) retail space and will be a representation of the local community.
“To offer products and services catered to individual locations, the demographic profile of each vicinity will be studied within a 10km radius, not taking into account foreign visitors,” said Lim, adding that the interior and tenants of each store would also be based on needs of customers within the area.
At present, there is only one Sogo KL Department Store nationwide, with a nett lettable space of about 65,032sq m (700,000sq ft).
Now in its 23rd year of operation, Sogo Malaysia has continuously been developing talents and honing skills of employees through training and professional courses while investing on systems to build a strong back bone, leading to the preparation for expansion.
Lim added that Malaysia was also an interesting place to visit for both foreign and local tourists.
“We view the economic future optimistically due to the fact that the millennials and Internet generation also wants to feel living experiences.
“Malaysia has the natural advantage of having different cultures in one locality along with amazing beaches, rainforests, caves and mountains,” concluded Lim.
