RISE OF DOLLAR STORES IN MALAYSIA
Starting with one RM2 store in the town of Gemas in Negeri Sembilan, Eco-Shop has grown to become Malaysia’s leading dollar store chain and currently has 358 outlets across the country.
In its prospectus, it said it plans to add an average of 70 new stores annually for the next five years.
The company is worth about RM6.67 billion after its listing.
The vast majority of its more than 10,000 items each cost RM2.60 in Peninsular Malaysia and RM2.80 in East Malaysia.
Eco-Shop has also launched 22 Eco-Plus format stores featuring a wider range of products at various prices.
Its net profit has risen from RM27.09 million in 2022, to RM105.07 million in 2023 and RM177.28 million last year.
While Eco-Shop is the biggest dollar store player in Malaysia and commands almost 70 per cent market share, there are several other players such as Ninso and Eko Jimat.
Ninso originated in Kluang, Johor in 2017, and now has 99 outlets across the country.
Eko Jimat has 72 stores, while Japanese chain Daiso, whose items are mostly RM5.90 each, has 70 stores. NT Shop has 36 stores, while Setia has 34 stores.
Predominantly located on individual shoplots, some of these stores have also set up in malls.
According to a market research report by consulting firm Frost & Sullivan for Eco-Shop’s IPO, the dollar store-based retail segment in Malaysia has experienced significant sales growth from around RM1 billion in 2016 to RM4 billion in 2024.
While their popularity may not be surprising to some, others have found it remarkable.
“I’m actually quite surprised at how big the dollar store trend has gotten,” said Mydin Hypermarket founder and managing director Ameer Ali Mydin, who has 70 branches in Malaysia.
With the ringgit weakening over the years and one American dollar now equivalent to RM4.25, “you kind of think, ‘What can you really buy for RM2.60?”, Ameer said.
“But they seem to have enough things to keep people coming back,” he said, adding that he does not intend to enter the fray as he did not want to spread his business thinly.
A walk through the Eco-Shop and Ninso branches in Selayang reveals no shortage of items ranging from the practical to the whimsical at the RM2.60 price point.
Besides plastic containers, file covers, a pack of 80 baby wipes, 500ml hand wash, shampoo, flower pots and tools such as spanners and sets of allen-keys, there are also toys and capybara-themed hairbands.
The shops also sell food items such as biscuits, chocolates and snacks.
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