Courts Asia reveals aggressive growth plan

Retailer may open up to 20 stores across Singapore and Malaysia by 2015.

In its newly released prospectus submitted as part of its initial public offering in the Singapore Exchange, Courts Asia said it plans to grow its store network "by an average of 6 stores a year in Malaysia and an average of 1 store a year in Singapore over the next 2 to 3 years and/or increase our retailing area by an average of 140,000 sq. ft. per annum over the next 2 to 3 years, subject to market conditions."

"Malaysia’s market for electrical and IT products is highly fragmented with no single dominant player and relatively limited market penetration outside the Klang Valley area," it added.

Courts Asia further noted that it will target suburban locations with high population densities and access to public transport. It will also focus on increasing retail fl oor space and retail productivity at existing retail stores in Singapore.

The electronics and furniture retailer also outlined four other growth strategies aside from expanding its store footrprint.

1. Improve existing store performance. Optimise merchandise mix, space allocation and product placement. Typically refurbish stores once every 3 to 4 years to update store format and layout. On smaller scale, roll out “consumer experience” areas where customers can “touch and feel” the products and better experience the features and benefits of new products with help of specially trained employees.
2. Innovate credit services. Introduce new credit products to expand customer base. ‘SmartRent’ which will be a facility for customers to rent products instead of purchasing them. ‘S & E Pass Flexi Plan’ which will be a facility for foreign workers and expatriates in Singapore who may not have access to credit facilities. It also plans to maximise credit spending of existing customers by developing new channels for loan applications.
3. Expand online and other alternate trade channels and product offerings. Trade shows will be especially targeted. Trade shows showcase product offerings to a large customer audience and
   are highly cash-generative Introduce new product offerings/categories that fi t with our core positioning of “home and technology solutions”. 
4. Penetrate additional markets. Apart from Singapore and Malaysia, Courts Asia owns intellectual property rights to “Courts” brand and/or other brands in 15 other Asia-Pac countries. Rights provide the retailer the opportunity to enter these markets. Target is to open first store in eastern Jakarta, Indonesia, in 2014, which its sees as a large, fast-growing and underpenetrated market that is also becoming more open to modern concepts in electrical, IT and furniture products.