99SpeedMart has disclosed the first version of its prospectus to Securities Commision,
99SpeedMart looks like a sparrow but is small
Its turnover level has reached more than RM 8 billion,
In fact, it is comparable to the volume of business of the vast majority of blue chip stocks.
It is also among the retail companies listed locally,
The one with the highest throughput,
The well-known Aeon, MrDiy, has an annual turnover of around RM 4 to 50 billion.
The gross margin of the retail industry is generally at different levels depending on the products sold.
For example,
The gross margin of food and beverage retail is above 50%;
Hardware retail/fashion retail should also be 40% or more;
Department store/pharmaceutical retail sales are around 20-30%;
99SpeedMart is a different approach,
Although the gross margin of daily necessities sold is only close to 10%,
However, the advantage lies in the high customer return rate,
The amount of operating expenses is small,
Therefore, the business model is easy to replicate,
It created today's small store Big Mac,
It has transformed into the largest retail group in the country.
(Compare 7-11, KK, TF, Lotus, Aeon, Mydin, etc.)
Among 99SpeedMart's profits,
There is also a very large contribution from product listing costs (products li...