NEW mini-marts and small grocery stores are springing up in neighbourhoods despite the general gloomy economic outlook caused by the Covid-19 pandemic, said traders and associations.

They said sales of essential goods at these stores are thriving despite the ongoing movement restrictions, increasing unemployment and business closures.

They are surprised by the new lease of life for these traditional stores, a sector previously labelled a sunset industry.

The industry is now enjoying more business volume than before, they told The Malaysian Insight.

The Federation of Sundry Goods Merchants’ Associations of Malaysia president Hong Chee Meng said in recent months, many new grocery stores or mini-supermarkets have sprung up nationwide, especially in the Klang Valley.

“The grocery industry across the country has discovered this phenomenon. Many new grocery stores and mini-supermarkets have suddenly emerged, which are estimated to be 10% more than before,” he said.

The federation has now more than 10,000 local grocers as members, he added.

Hong also said the newcomers would not affect the existing grocery businesses.

“We are more worried these newly opened grocery stores and mini-supermarkets may not operate for a long time.

“There seems to be this thought that putting goods on the shelves can generate income without too many risks.

“However, we are worried that wholesalers and suppliers will suffer losses (in the event of closures of these new stores), and may not be able to recover payment.”

Klang Provision and Sundry Goods Retailers’ Association chairman Tan Teck Ho said there was a 20% increase in grocery stores opening in Klang.

He also agrees that the emergence of new rivals will not affect existing grocers.

“Our locations are mainly in residential areas. We have newly opened grocers and mini-supermarkets mostly open on the roadside or in shops that originally ran other businesses.”

He said the emergence of these new grocery stores could be due to people seeing the potential of this sector during this period.

Meanwhile, a big player in the local grocery market, KK Supermart Holdings Sdn Bhd, is not worried about the mushrooming new rivals.

Founder Dr K.K .Chai said the newcomers won’t affect business.

“The necessities industry has great prospects, so we will continue to open new branches to ensure that every residential and community has a KK Mart,” he said, adding that the group currently has 491 stores across the country and is still looking to open stores in new locations. – November 23, 2020.