How 99 Speedmart Achieved Tremendous Business Growth through Development Strategies

The Genesis of 99 Speedmart and its Early Years

Founded in 1987 with a simple store in Kepong, Kuala Lumpur, 99 Speedmart has come a long way over the years. The company has grown to be Malaysia’s largest grocery store chain, with over 1,400 stores in various parts of the country. This impressive growth is attributed to the implementation of various development strategies, which we will delve into in this article.

The Expansion of 99 Speedmart through Franchising

In the early years of 99 Speedmart, the company was solely focused on establishing new stores in the Klang Valley region. However, in 2006, the first franchised store was opened in Kedah, marking the beginning of the company’s expansion using franchise models. The franchising strategy allowed 99 Speedmart to tap into the expertise, resources, and networks of franchisees, who were responsible for bringing the 99 Speedmart brand into new regions. The franchise model also enabled the company to scale-up its operations more efficiently and reduce operational costs. Today, more than 95% of 99 Speedmart’s outlets are franchised, and this has played a massive role in the phenomenal growth of the company.

The Implementation of Efficient Supply Chain Management

99 Speedmart has always been recognized as a low-cost store, thanks to its efficient supply chain management. The company has a central warehouse in Kuala Lumpur that receives deliveries from suppliers, which are then distributed to stores based on demand. The items are barcoded, and every store receives an automated inventory report from the central warehouse. The report helps to identify low stock level areas and facilitates prompt replenishment. Additionally, the company has invested in Information Technology (IT) to strengthen its supply chain management. For instance, the use of a mobile app for ordering stocks, a central database system, and an online ordering system for franchisees has streamlined supply chain processes. As a result, 99 Speedmart has reduced wastage of perishable items, optimized inventory management, and significantly reduced operational costs.

Modernizing Store Designs and Implementing Innovative Technologies

99 Speedmart has not only put its efforts into streamlining its operations but has also improved the in-store experience of its customers. Recognizing the changing consumer preferences, the company began modernizing its store designs by revamping the layout and using bright colours and attractive signage to enhance product visibility. It also implemented innovative technologies such as self-checkout machines and self-scanning apps that have made shopping a more convenient and enjoyable experience for customers. Moreover, the company has introduced eco-friendly shopping bags to contribute to environmental sustainability.

Conclusion

In conclusion, 99 Speedmart’s success story exemplifies how effective development strategies can position a company for growth. The expansion of stores through franchising, efficient supply chain management, modernizing store designs, and implementing innovative technologies have all played a massive role in the company’s success. Furthermore, 99 Speedmart remains committed to expanding its reach into new locations and enhancing customer satisfaction. It is no doubt that the company will continue to be a force to reckon with in the Malaysian retail industry.

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