Premium grocery retail operator, TFP Retail Sdn Bhd which owns Village Grocer, Ben’s Independent Grocer (BIG) and The Food Merchant chain – is projecting robust growth for the financial year ending October 2024.
The company attributes the strong growth to store expansion, limited competition and rising disposable income among the middle class consumers in Malaysia. There is also lesser competition in the ‘premium’ retail segment.
TFP Retail forecast a 16% year-on-year jump in revenue to RM1.35 billion (US$289 million) in 2024, while the overall retail industry is expected to grow at only 3.6%. Specifically, the supermarket and hypermarket category grew only 2% in the first quarter of 2024.
Currently, TFP Retail operates a total of 46 stores under 5 brands, with majority (43) of the stores belonging to the premium retail category which includes Village Grocer (30), BIG (6), The Food Merchant (6) and BSC Fine Foods (1). The remainding 3 stores operate under the mass-market Pasaraya OTK brand.
The Malaysian premium grocery market still offers a strong growth opportunity due to the rising middle and upper class consumers in the country whom demand for better quality and healthier food and beverage options.
Apart from store expansion, TFP Retail is also looking at revamping its existing stores to offer better customer experience.
