Urban consumers tend to do their grocery shopping in modern supermarkets, many owned by international retail chains and often located within shopping centres. The demand for premium groceries is growing in Klang Valley, and premium supermarkets have an increasing presence with a higher number of players and outlets over the review period.
Supermarkets that target mass markets face increasing challenges as low- and mid-income consumers become increasingly sophisticated and budget conscious when doing their grocery shopping. This consumer segment is often attracted by lower prices and promotions, especially as high food prices squeezed household budgets towards the end of the review period.
Mid-upper- and upper-income consumers are trading-up everyday products in their shopping, changing the urban grocery scape in Kuala Lumpur. As an increasing number of Malays becomes well-travelled and affluent, they are looking for better quality.
AEON Co (M) Bhd, which operates department stores and shopping centres nationwide, also operates full-scale supermarkets within its stores. AEON is positioned as a mid-market retailer that targets mid- to high-income consumers.
Ranked fourth in supermarkets, Mydin Mohamed Holdings experienced a difficult 2018 as its supermarket chain My Mydin recorded loss for consecutive years and closed a number of stores. Mydin Mohamed Holdings also operates premium chain, Sam Groceria, with four outlets in 2017 However, the company sold three of these outlets as part of its consolidation.
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