The capital expenditure for expansion will include the firm's flagship store to be located at its new corporate headquarters in Petaling Jaya, Selangor.
Amway president for Southeast Asia Low Han Kee said the expansion will enable the firm to increase its nationwide reach and boost sales.
"The expansion is part of the group's strategy to make our products more visible and accessible to customers and distributors," he said.
Speaking to reporters after launching Amway's first store in Kuala Lumpur yesterday, Low said opening new stores is a strategy adopted by the group in 2008 and it has proven to be effective in enhancing earnings potential.
Amway's seven stores netted RM28 million in sales from January to August this year.
Low said with the retail stores, both distributors and customers can walk in to make purchases after testing the products.
Apart from the new store in Wangsa Maju, the other stores are in Seremban, Kuala Terengganu, Kota Baru, Batu Pahat, Bintulu, Penang and Klang
Low said, sales at the existing shops have exceeded internal forecasts.
Amway offers over 250 differentiated products from its five major corelines such as cosmetics, vitamins and household appliances through 195,000 distributors nationwide.
In addition to the eight retail stores, the group operates 13 regional distribution centres throughout Malaysia, including one in Brunei.
Low said sales from the retail stores helped Amway post record revenue of RM645.5 million for its financial year ended December 31 2008, up 10.5 per cent from the previous year.
This year, given the tougher economic environment, the group is cautiously optimistic of achieving marginal growth in revenue.
"We posted sales of RM317.1 million for the first six months of this year, a 10.1 per cent increase from the same period of last year," Low noted.
Amway president for Southeast Asia Low Han Kee said the expansion will enable the firm to increase its nationwide reach and boost sales.
"The expansion is part of the group's strategy to make our products more visible and accessible to customers and distributors," he said.
Speaking to reporters after launching Amway's first store in Kuala Lumpur yesterday, Low said opening new stores is a strategy adopted by the group in 2008 and it has proven to be effective in enhancing earnings potential.
Amway's seven stores netted RM28 million in sales from January to August this year.
Low said with the retail stores, both distributors and customers can walk in to make purchases after testing the products.
Apart from the new store in Wangsa Maju, the other stores are in Seremban, Kuala Terengganu, Kota Baru, Batu Pahat, Bintulu, Penang and Klang
Low said, sales at the existing shops have exceeded internal forecasts.
Amway offers over 250 differentiated products from its five major corelines such as cosmetics, vitamins and household appliances through 195,000 distributors nationwide.
In addition to the eight retail stores, the group operates 13 regional distribution centres throughout Malaysia, including one in Brunei.
Low said sales from the retail stores helped Amway post record revenue of RM645.5 million for its financial year ended December 31 2008, up 10.5 per cent from the previous year.
This year, given the tougher economic environment, the group is cautiously optimistic of achieving marginal growth in revenue.
"We posted sales of RM317.1 million for the first six months of this year, a 10.1 per cent increase from the same period of last year," Low noted.
- Business Times
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