MR D.I.Y. Group (M) Bhd (MR DIY) has closed 19 underperforming outlets during the first nine months of this year.
CIMB Securities analyst Walter Aw Lik Hsin said MR DIY has also revised its store-opening target for the 2025 financial year to 185 outlets, down from the earlier target of 190.
The outlet closures signal a shift toward profitability
According to Lik Hsin, this adds a net 166 outlets, bringing the total to an estimated 1,605 stores by the end of 2025, as reported by Berita Harian.
He also noted that the closures reflect a strategic shift for the company, from aggressive expansion to focusing on profitability.
“MR DIY clarified that the closures involve underperforming stores, so the impact on overall revenue is minimal while boosting long-term efficiency,” he said.
Looking ahead to the 2026 financial year, the group plans to open up to 155 stores, which is a positive sign of a more disciplined approach to growth.
He added that this move comes amid weak consumer sentiment and negative same-store sales growth (SSSG) trends.
“MR DIY is confident performance will improve”
Commenting further, Lik Hsin said KKV Supplier Chain Sdn Bhd, in which MR DIY owns a 49% stake, still posted losses for the second consecutive quarter in 2025.
“MR DIY is also adjusting its location strategy by focusing on larger ‘MR.DIY PLUS’ stores. These bigger outlets bring multiple brands under one roof to attract more customers, improve efficiency, and boost revenue per store,” he explained.
He attributed the losses to startup costs and early operational inefficiencies but added that MR DIY is confident that performance will improve as the business scales up.
“With 19 KKV stores now in operation and plans to reach 25 by the end of 2025, we expect profitability to pick up as fixed costs are spread out and brand awareness grows. Meanwhile, the Sumbangan Asas Rahmah (SARA) programme has been rolled out in 125 MR DIY stores, with plans to expand to 300 stores by the first quarter of next year.”
He added that although the revenue contribution is still small, it is expected to grow as more stores take part.
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