Aeon Big struggles in Seremban, shuts store on December 31

The Aeon Big outlet in Rahang, a suburb of Seremban, started out as a Carrefour store five years ago. – The Malaysian Insider pic, December 18, 2015.

Three years after Japan’s largest retailer Aeon Co Ltd took over French retail giant Carrefour’s Malaysian operations in a nearly RM1 billion deal, its Aeon Big outlet in Seremban is to pull the shutters down.

The store, among the 28 outlets in the country, is in Rahang, a suburb of Seremban, where other major hypermarkets, including Giant, Tesco, Mydin and Econsave, are also based.

A notice informed customers of the December 31 closure.

“Dear valued customers, thank you for your support these five years. We are moving our space to serve you better,” the notice said.

It is not known how many employees are affected by the closure but those whom The Malaysian Insider spoke to said they were given the option of transferring to the Putrajaya outlet. 

A few have taken up the offer but many others have decided to leave the company.

G. Priya, 24, said she was left with no choice but to resign because of the shutdown.

“We were given the option to transfer to Putrajaya, but the distance is too far for me,” she said when met at the outlet.

“It is sad that it is closing down. Now I have to look for a new job, as it will not be economical to travel to work in Putrajaya.”A notice informing customers that Rahang Aeon Big’s last day is December 31. – The Malaysian Insider pic, December 18, 2015.

She said the Rahang outlet was a stone’s throw from the housing estate where she lived.

“It’s a short drive from my home to work,” she added.

Priya said she first heard about the shutdown in September.

Another staff member who declined to be named said he, too, has resigned.

“I did not take up the offer to transfer to Putrajaya,” he said.

A cashier who requested anonymity said the shutdown was not that bad as the staff were given options.

“We were told staff will be transferred to other outlets,” she said while attending to customers.

She said that the employees were promised travel allowances if they decided to stay on with the company.

“I am not sure how much but I heard it is based on distance,” she said, adding that she has decided to accept the transfer.

She also said that there were many who resigned when they heard about the shutdown.

“Most want to work close to their homes,” she said.

During a recent visit to the store, only three cashier counters out of 13 were operating.

Some of the staff were clearing items off the shelves and setting up promotional corners where items were being sold at discounted prices.

The store manager, when approached, declined to comment on the closure.

“I cannot reveal anything, perhaps you should contact the headquarters in Subang,” said the manager, who requested not to be named.

When asked about the staff’s fate, he said it was an internal matter to be addressed by the management.

“I don’t think the media needs to know this,” he added.

The Malaysian Insider attempted to reach Aeon Co (M) Bhd, which operates the Aeon Big hypermarkets and supermarkets, for more information on the closure, including the number of staff affected and whether compensation was offered, reasons for closure and whether other outlets faced a similar fate, but has yet to receive a response. 

Other businesses in the same building have also moved out to a nearby location.

Notices posted on the shutters of the stores advised customers of the relocation.

An employee at another outlet selling massage chairs said the news of the closure of Aeon Big hypermarket was not surprising.

“There are hardly any customers here,” said the worker, declining to be named.

He said the unsuitable location was the likely reason for the closure.

“I believe that is the reason. Compared with other hypermarkets or malls, people don’t frequent this place.”

Taxi driver Kumar Kuppan said the outlet was not convenient compared with other malls.

The 50-year-old cabbie said he hardly has passengers wanting to go to the outlet.

“The road to the hypermarket is not an easy one.

“The place also does not have any entertainment outlets for a family to spend their weekend while doing some shopping.”

Kumar said people preferred to patronise one-stop centres and shopping malls.

“There is nothing much to do here, compared with Jusco in Seremban 2, for example, where you can watch a movie after shopping and have a meal at one of the fast food outlets. There are many eateries there.”

In May, it was reported that Aeon’s net profit for the 2014 financial year dropped 7.9% to RM212.71 million from RM230.96 million in FY2013. This was after four consecutive years of steady growth.

However, Aeon managing director Nur Qamarina Chew Abdullah said the company still planned to open new malls in Shah Alam, Selangor, and Klebang, Malacca, slated to open by year-end.

The group will also open malls in Kota Baru, Kelantan, in 2016, and Kuching, Sarawak, in 2017.

- TMI