PETALING JAYA: The 7-Eleven Group registered overall revenue of RM684.2 million for the first quarter ended March 31, 2024, representing an increase of RM28.2 million or 4.3% compared to the corresponding quarter last year.
The convenience stores segment recorded a positive performance, with revenue rising by RM28.2 million or 4.3% to RM684.2 million compared to the previous year’s corresponding quarter. The rise in revenue attributed to factors such as increased customer count and improved product offerings in the quarter.
Operating expenses increased by RM20.7 million or 10.2%, primarily due to higher store operation-related expenses driven by longer operating hours and the addition of 88 net new stores, bringing the total number of stores to 2,581. An expansion in its workforce to meet anticipated business demands also contributed to this increases.
In the quarter, the group said in a statement today, it successfully rolled out 189 new 7-Café store formats, bringing the total count to 305 7-Café stores. It is encouraging to note that these 7-Cafés have proven to be more productive with higher fresh food sales participation compared to classic stores.
The prevailing economic landscape has been marked by significant challenges, notably characterised by the escalation of geopolitical tensions and higher costs of living, especially with the recent increase in the Sales and Services Tax in March 2024. That said, the local economy is expected to be driven mainly by resilient domestic spending, supported by sustained growth in employment and wage growth. Tourist arrivals and spending are expected to improve further.
In this regard, the group will remain vigilant and is dedicated to implementing necessary measures to navigate effectively through these headwinds and opportunities.
“Our focus for the convenience stores segment continues to be on the expansion of our 7-Café store format, aimed at enhancing product offerings and elevating the in-store customer experience,” the company said.
It said it will continue to expand its private label offerings as it seeks to continuously deliver value to the emerging group of modern, brand agnostic consumer, where the focus solely on brand per-se is gradually vanishing in favour of a focus on the product itself and its attributes.
With regard to the Indonesian pharmaceutical business, it said it will continue to collaborate closely with its joint venture partner with an immediate focus on the overall strategic roadmap, including store expansion plans, product range and pricing review, marketing activation and driving a consumer centric operation.
