The retailer is confident to maintain its profit for FY18 despite a soft retail environment
By KEVIN WONG / Pic By BLOOMBERG
Tomei Consolidated Bhd plans to enhance its presence in e-commerce to cater to the change in consumers’ behaviour away from traditional retail purchasing.
Tomei group MD Datuk Ng Yih Pyng said mobile communication has its consumers’ spending behaviour as information is easily obtained.
“Customers these days seek convenience and in order for us to move forward, we need to adjust our business strategy accordingly,” he told reporters after its AGM in Kuala Lumpur yesterday.
Ng said the gold and jewellery products retailer is not new to e-commerce.
“We do have our own online platform, but it it undergoing a complete revamp. It is expected to be completed by the second half of 2018.
“However, some of our products are on several online platforms and we are also exploring to collaborate with more platforms,” he said without naming any.
Tomei’s online sales growth has been quite healthy. “Online sales have more quantum and value. So, this ups the growth,” he said.
Ng said Tomei is confident to maintain its profit for this fiscal year 2018 (FY18) despite a soft retail environment.
“We have managed to record a healthy sales growth, as well as improve on our profitability despite the situation.
“At the same time, we have embarked on a rationalisation strategy to close retail outlets that do not meet our requirements,” he said.
According to Ng, Tomei is in talks with several shopping malls. However, nothing has been confirmed.
“In order for us to open two to three outlets, we have to set aside about RM1 million to RM2 million in capital expenditure. At present, we have 64 outlets nationwide,” he said.
Tomei recorded total revenue of RM149.95 million for its first quarter ended March 31, 2018 (1Q18), a decrease of 9.5% compared to the same period a year ago.
Ng said the lower revenue in 1Q18 was due to the lower sales volume, particularly from its manufacturing and wholesale division.
The group reported a pretax profit of RM2.5 million for the quarter.
In regard to the announcement of the abolishment of the Goods and Services Tax (GST) by the government, Ng said the group will be taking a “wait-and-see” approach until the government’s new mechanism replaces the GST.
“It is a bit too early to speculate, but generally with the abolishment of the GST it will definitely help increase sales and give positive impact to consumers,” he said.