Courts Singapore's storage space likely to balloon by 26,255 sq ft

Despite land area limitations.

According to Maybank Kim Eng, Courts has made its intention clear on each country's expansion strategy. "We estimate it will open a net average of 106,255 sq ft of store space pa between 2014 and 2015," it said.

So far, it is on track, having opened a total of six stores with one expected to open next quarter in Kedah, Malaysia. In total, Courts will have 13 stores in Singapore and 59 stores in Malaysia by end-FY3/13.

Here's more from Maybank Kim Eng:

In Singapore, it must improve store productivity. Retail growth opportunities in Singapore are more limited due to land area limitations.

We expect the bulk of Courts' earnings will continue to be generated by Singapore as its base market, and management will improve on existing store productivity by optimising product mix, increase the number of retail concepts and by continual refurbishments.

We have ascribed an increase of 26,255 sq ft in store space on average between FY3/14F and FY3/15F. Courts will open a new store each in JEM and Westgate in 1QFY3/14 and 3QFY3/14, respectively.