CARREFOUR Malaysia promotional plans

Speaking at the launch of the "Lebih Jimat Lebih Hebat" (Great Savings Great Value) campaign in Kuala Lumpur yesterday, the managing director of Carrefour’s Malaysian subsidiary, Shafie Shamsuddin, said that the retailer will invest a total MYR60 million (USD16.8 million) on various promotions and offers throughout the year. The retailer will sacrifice MYR20 million (USD5.6 million) of its profitability by slashing the prices of 2,000 products by an average of 7%, with the price cuts effective until year end. Another MYR40 million (USD11.2 million) has been allocated for regular monthly and festival price reductions and promotional activities that will take place until the end of the year. Last year, the retailer pledged MYR4 million (USD1.1 million) on price cuts for 1,200 products. However, due to an overwhelming response to its price cut campaign which ran from February to December 2006, the end result saw the retailer forking out a total of MYR15 million (USD4.2 million). Nevertheless, the campaign was worth it, as according to Mr Shafie, "When we cut the prices of 1,200 products last February, we saw our sales increase by 10% in March and April," which compares to a 3% increase in monthly sales prior to the price cut. This year's price cut items include fresh food and groceries and non-food items such as personal care products and cleaning agents. He also said that the retailer was looking to add three more outlets to its existing chain of ten hypermarkets this year, “We could be having one new outlet in Malacca, one in Klang and one in USJ in Subang Jaya. The three stores would take up an investment of MYR120 million (USD33.6 million).”