Courts Asia secures Malaysian sites for second big-box Megastore, Sabah stores

Country retail footprint to increase by 17%.

Mainboard-listed Courts Asia Limited (Courts Asia) announced that it has identified the site of its second "Big-Box‟ Megastore in Klang Valley, Kuala Lumpur and at the same time secured two new sites in Sabah, East Malaysia. This completes the Group‟s nationwide retail coverage in Malaysia.

The upcoming store in Subang Jaya, Klang Valley, will be the Group‟s second largest store in Malaysia. This follows in quick succession to the grand opening of its first 108,000 sq. ft. „Big- Box‟ Megastore in Sri Damansara, Klang Valley, on 20 July 2013. Subang Jaya is a buzzing commercial and residential hub in the Klang Valley.

Scheduled to open by December 2013, the 66,000 sq. ft. single-storey Subang Megastore will offer consumers one of the largest ranges of electrical, IT and furniture products in Malaysia, as well as signature innovative retail concepts that Courts is renowned for. Located next to the flagship stores of both Mydin and Giant, it will serve an immediate population of more than 700,000 and a wider Kuala Lumpur population of 1.6 million.

Additionally, the Subang Megastore will feature innovative retail concepts such as: Customer "experience zones‟ where customers can touch, feel, use and experience products before purchase; Sleep Clinic, a concept which offers customers "expert advice‟ on choice of beds and bedding, and allows for customisation of mattresses; Cool Zone, an in-store one-stop shop for air-conditioning needs; Dr Digital, which provides customers with a comprehensive IT consultation service; Sofa Maker that allows consumers to customise their sofas; and a Market Hall dedicated to special promotions and exclusive offers.

Courts Asia‟s Executive Director and Group Chief Executive Officer, Mr Terence Donald O' Connor, said: “Securing the sites for two 'Big-Box' Megastores and two other sites in Sabah within a short period of each other is indicative of the team‟s commitment in expanding our retail presence in Malaysia to full potential quickly. Notably, we are now present in all states in Malaysia, with good representation via our „Big-Box‟ megastores to serve the greater Kuala Lumpur area.

“With the upside of the Subang store coming through, our store footprint in Malaysia within the financial year ending March 2014 is likely to end at 288,000 sq. ft., up from the estimate of 208,000 sq. ft. announced earlier. This is more than double of the 120,000 sq. ft. increase committed during our IPO. When open, the 'Big-Box' Megastore in Subang, and two upcoming stores in Sabah, together with the already open 'Big-Box' Megastore in Sri Damansara, will increase the store retail footprint in Malaysia by 17%.

In Sabah, the larger of the two sites, at 16,043 sq. ft. will be located at Inanam Taipan, Kota Kinabalu, while the second site is 11,000 sq. ft. and located at Pavilion Bundusan, Kota Kinabalu. Both Inanam Taipan and Pavilion Bundusan are bustling commercial developments which are easily accessible and strategically located near residential areas.

“Sabah, as the country‟s third most populous state, is attractive, given its high population density and rapid urbanisation profile. We will continue to focus sharply on executing our growth strategy and identify opportunities to open a net increase of six smaller format stores by March 2014. Having a wider store network will mean that we will see greater scale of efficiencies and operating leverage come into play, thus putting us in a bigger position of strength,” added Mr O' Connor.

The Subang Megastore and the two upcoming stores in Sabah are expected to contribute to the Group‟s FYMar2014 financial results.