Investment will span the next five years to bring more value to consumers in the region
Courts yesterday revealed to selected media, which included AdLib, its plans to invest over $70 million in the next five years into the Singapore and South-East Asian market. Plans include opening more retail outlets in Singapore and Malaysia to bring more value to consumers and create more employment opportunities for both countries.
This announcement was made by CEO of Courts Asia, Terry O’Connor, at a media briefing session. The retailer’s plan is to have 18 stores in Singapore by the year 2015, up from the current 10 retail outlets. The $70 million expansion plans includes its goal to reach a total of 95 stores in Malaysia – up from its current 57 stores, by 2015. The company also has plans to move into a third market within the South-East Asian region by the year 2013.
This announcement comes on the back of an uncertain economic outlook for Singapore and the region, with the recent projection that the Singapore economy is expected to grow by a mere 1 to 3 % in 2012 by the Ministry of Trade and Industry (MTI) based on the global financial instability
Despite the uncertain forecast, Courts is confident that its proven track record to drive productivity and employment in the Singapore market will bolster its targeted growth plans. According to recent findings by Boston Consultancy Group, based on research by Singapore Department of Statistics, Courts reaped higher than average productivity levels in response to the government’s call to raise productivity targets across industries. The retailer’s profitability per sales person is 4% higher than the national average and sales generated per sales employee is a whopping 37% higher than the national average. The sales generated per square foot is also 6% higher compared to the national average.
The retailer’s expansion will also create new employment opportunities for both Singapore and the region, which will have a positive impact on the economy. For Singapore alone, the expansion plans will generate an additional 400 jobs, both at the retail level and at its support centre. In Malaysia, at least 650 jobs will also be created over 5 years.
“Our productivity levels have been growing at a steady 11% annually since 2006 and we aim to bring the trusted brand promise of Courts to more consumers in Singapore and the region. Our expansion plans will help us realise our goal to be a leading retailer in the South-East Asian region and bring superior value and experience by providing affordable home and technology solutions to customers,” said Mr. O’Connor.
“Our expansion will also bring our hallmark positive and people-oriented HR policies to more job seekers in Singapore and beyond, and we hope they will grow and be a part of the Courts family, like so many of our employees, in the years to come.”
At the media briefing, the retailer also unveiled its brand-new retail concept titled “Courts 2.0”, which will occupy a new Upper Bukit Timah space, on the site of Courts former flagship store slated to open around end December 2011. Courts 2.0 will be a lifestyle home furnishing and technology retail concept spanning over 16,000 square feet to appeal to discerning home owners and consumers in the western region of Singapore.
Courts 2.0 will herald the first of many stores that will be opening in the West, including a two-storey Clementi store that will open in January 2012, followed by another retail outlet in JEM located in Jurong in mid-2013.