PETALING JAYA: KK Super Mart, more commonly known as KK Mart, has been thrown into the spotlight since the discovery of several pairs of socks bearing the word “Allah” at one of its outlets.
The convenience store chain’s founder and executive director KK Chai made a tearful apology over the matter, followed by the socks supplier, Batu Pahat-based Xin Jian Chang Sdn Bhd, which said the product was imported from China.
FMT takes a look at the company’s growth in two decades from a single store in Kuchai Lama, Kuala Lumpur, to the second-largest convenience store chain in Malaysia, behind 99 Speed Mart which was founded in 1987.
From 1 store in KL to nearly 800 nationwide
Chai and his siblings set up the first KK Mart outlet with RM60,000 in capital at the ground floor of a Kuchai Lama shop lot in January 2001.
The company then rapidly expanded over the years, with hundreds of branches mushrooming in and around the Klang Valley, before branching out to other parts of the country.
Currently, there are nearly 800 KK Mart outlets across the country, according to the company’s website, the majority of them located in the Klang Valley, Melaka, Negeri Sembilan, Johor, Pahang, Perak and Sarawak.
KK Mart has also expanded its reach to South Asia, opening up 21 outlets in Nepal and three in India, while the KK Group ventured into other industries, including auto parts, food and beverage, hospitality, and even the beauty and wellness sector.
Homegrown competitor to top 2 player
Its surge in popularity and demand led to KK Mart’s emergence as one of the main players in the convenience store sector, and homegrown to boot.
The sector used to be dominated by 7-Eleven Malaysia, which had Berjaya Corp as its largest shareholder, until overtaken by the growth of KK Mart and fellow convenience store chains 99 Speed Mart Sdn Bhd and MyNews Holdings Bhd.
Competition in the industry got stiffer with the entrance of other foreign names, particularly Japan’s FamilyMart and South Korean convenience store CU, which are operated by QL Resources Berhad and MyNews, respectively
The influx of competitors did not seem to hinder KK Mart’s growth however, as the company continued its expansion across the nation with its sights set on setting up 1,000 branches in Malaysia.
It eventually became the second-largest chain of convenience stores in Malaysia, behind 99 Speed Mart with its over 2,500 outlets nationwide.
KK Mart hit the ground running after the Covid-19 lockdowns were lifted, setting in place plans to open 10 stores every month in 2021 with the company generating nearly RM1 billion in revenue a year.
It also signed a memorandum of understanding with another Korean retail chain, GS25, in July 2022 for the latter’s foray into Malaysia, although this did not bear fruit with the agreement scrapped a year later.
In May 2023, The Edge quoted Chai as saying that KK Mart could be listed on Bursa Malaysia “within one to three years, when the time is right”.
Socks and the political spiral
KK Mart’s current prominence began with a social media posting, which then sparked off a spiral of political movement.
- March 13 – Independent preacher Firdaus Wong posts photos of socks bearing the word “Allah” being sold at a KK Mart outlet in Bandar Sunway. KK Mart issues an apology six hours later, saying the product was a consignment item from a vendor.
- March 14 – KK Mart lodges a police report.
- March 15 – Umno Youth chief Dr Akmal Saleh calls for a public boycott of KK Mart outlets.
- March 16 – At a press conference, KK Mart founder KK Chai, vendor Xin Jian Chang’s owner Soh Chin Huat, and KK Mart’s top management make a public apology at a press conference. They say the socks were imported from China.
- March 17 – Akmal and other Umno Youth leaders lodge police reports. Religious affairs minister Na’im Mokhtar confirms that the police, Islamic development department, and domestic trade and cost of living ministry are probing the matter.
- March 18 – Inspector-General of Police Razarudin Husain says KK Mart’s management will be summoned to assist in the investigation.
- March 19 – The Yang di-Pertuan Agong, Sultan Ibrahim, expresses his displeasure over the controversy and calls for stern action to be taken against those responsible.
- March 20 – Xin Jian Chang’s factory in Batu Pahat is temporarily closed.
- March 21 – The Batu Pahat Municipal Council says it has revoked the vendor’s business licence, but Xin Jian Chang says the licence is valid until it submits a written statement to the council for its alleged non-compliance with its licence terms.
- March 22 – The police investigation paper is referred to the Attorney-General’s Chambers. Separately, a 35-year-old man is jailed six months and fined RM12,000 over a Facebook post related to the issue deemed insulting to Islam.
A tough year ahead?
While the financial impact of the controversy over its sale of socks bearing the word “Allah” may not be immediately apparent, Malaysiakini reported a decline in sales at three KK Mart outlets in the Klang Valley.
It also reported employees at one outlet being subject to scoldings and shouts by random passersby, though this did not happen at two other branches surveyed.
The situation has not been aided by Dr Akmal Saleh doubling down on his call for KK Mart outlets to be boycotted, with the Umno Youth chief “advising” the company to venture into other businesses.
Despite DAP, MCA and former trade minister Rafidah Aziz chastising Akmal over his stand, the thousands of Facebook users’ comments stating their support for the Merlimau assemblyman could be a reflection of sentiments on the ground.
The response so far to the issue, which religious affairs minister Na’im Mokhtar reportedly said “cannot be allowed to happen”, could be portents of a tough time ahead in 2024 for KK Mart. - FMT
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