As Malaysia's retail landscape continues to evolve, AEON Co (M) Bhd remains a dominant player, steadily expanding its presence nationwide. The group currently operates 195 outlets and employs over 12,000 staff members.

For nearly 40 years, AEON has been a trusted destination for Malaysians seeking groceries and household essentials in almost every state. With such a significant role in the nation's progress, in an exclusive interview, BusinessToday sat down with the newly appointed Managing Director Naoya Okada to discuss the next stage of growth for this well-known retail brand.

According to Okada, AEON's operations in Malaysia are divided into two key segments: Retail and shopping mall development. The large malls are either owned by the group or leased from other operators and the group currently owns AEON owns Daiso, AEON Big, AEON Store, Maxvalue Prime and AEON Wellness

Notably, AEON has already established a significant presence in most states, with large retail outlets and smaller community stores catering to various market needs.

Looking ahead, Okada revealed that AEON is gearing up for another phase of accelerated growth. "We are entering a stage where we are reaccelerating our growth. We've already built a strong foundation, but there's still plenty of room for expansion, especially in smaller markets and new retail formats."

In addition to expanding its retail presence, AEON is investing in its shopping mall business. The company sees malls not only as a space for shopping but also as lifestyle hubs that cater to the evolving needs of Malaysian consumers.

Diversifying Beyond Retail

Beyond retail and real estate, AEON has diversified into various business domains in Malaysia. "We have multiple businesses here, including entertainment and financial services," Okada shared. AEON's foray into digital banking is particularly noteworthy. The company recently launched AEON Digital Bank, signalling its ambition to become a broader service provider beyond traditional retail.

With plans to accelerate growth and expand into new markets, AEON's future in Malaysia looks promising. As Okada aptly puts it, "We've built a solid foundation, but the best is yet to come."

AEON Malaysia is gearing up for a new era of growth under the leadership of Okada. Having taken the reins in March 2024, Okada is focused on revitalizing the company's existing assets while strategically expanding its footprint across the country. In this exclusive interview, Okada outlines AEON's two-pillar approach for the coming years: Expansion of new outlets and the revitalization of its current stores.

Reaccelerating Growth After a Decade of Success

"AEON has achieved significant growth over the past few decades," Okada acknowledged. "But now, we need to accelerate that growth again." He explained that the company is shifting from its previous expansion-focused strategy to a dual approach that balances growth with the refurbishment of existing stores. "We're not just focusing on opening more outlets, but also on revitalising what we already have," he added.

This approach stems from the need to differentiate in a competitive market. Okada emphasised that AEON is transforming its traditional General Merchandising Stores (GMS) into specialised offerings, moving away from the broad product mix that once defined the brand. "The GMS model is evolving. We're not competing with other general stores anymore. We're up against specialised category leaders — whether it's fashion retailers like Uniqlo or home appliance giants like Harvey Norman," Okada said.

Specialisation and Private Labels: Key to Future Success

To stay competitive, AEON is focusing on specialisation and the expansion of its private-label offerings. "Customers need a reason to choose AEON ," Okada noted. "We're not just offering a wide range of products anymore. We're offering products they can't find anywhere else." This shift is aimed at providing a differentiated shopping experience and enhancing customer loyalty.

Private labels are an area where AEON sees significant potential. "Historically, we haven't focused much on private labels, but that's changing. We're putting more effort into sourcing unique, high-quality products, especially in categories like halal food, which resonates with the local market," he explained.

While AEON's transformation in Malaysia draws inspiration from its successful operations in Japan, Okada stressed the importance of adapting strategies to local markets. "We're not just copy-pasting the Japanese model here," he said. "We've localised our approach to ensure it fits the Malaysian market. That's part of why AEON has remained relevant while other international retailers have struggled."

Expansion Plans: Growing Beyond the Peninsular

In addition to revitalising existing outlets, AEON is investing in new store openings, with a particular focus on underserved areas. However, Okada is cautious about disclosing specific details. "We're not announcing exact numbers, but expansion is a top priority," he confirms. He highlights two major projects: a new shopping centre at MyTown and the expansion of AEON's mall in Seremban with a phase two development.

As for East Malaysia, where AEON currently has a presence in Kuching, Okada said there are no immediate plans for further expansion, but he's not ruling out the possibility. "We're not focused on any specific region right now. We're looking at the whole country as part of our long-term growth strategy."

With a two-pillar strategy that includes the expansion of new outlets and the transformation of existing stores Okada aptly summarises, "We're reaccelerating growth, but we're also evolving. The retail landscape is changing, and we're changing with it."