Giant outlets closing because leases lapsed, says minister

PUTRAJAYA: The closure of five Giant outlets is because their leases have lapsed and not due to the economic climate, as claimed by the Opposition, says the Domestic Trade, Consumerism and Cooperatives Ministry.

Its minister Datuk Seri Hamzah Zainudin said GCH Retail (Malaysia) Sdn Bhd was looking to operate in areas where rental was cheaper.

“What is actually happening is that the Giant outlets will be relocated and scaled down from a hypermarket to a superstore,” he said.

“This decision is not only due to competition but because ecommerce and eshopping have become trendy where many people prefer to do their shopping online and have the goods deliv ered to their homes,” he said.

Hamzah said it was normal for companies to reevaluate their business models so as to remain relevant and competitive.

“Giant is doing this to ensure its business is sustainable and it has nothing to do with claims that the country is going bankrupt,” he said after attending the ministry’s monthly assembly.

Hamzah was commenting on news that went viral on social media that Giant was holding clearance sales at the five stores that would be closed down.

These stores are in Sri Manjung, Perak; Sungai Petani, Kedah; Shah Alam City Centre Mall; Sibu, Sarawak; and Selayang Lama in Kuala Lumpur. The stores will be closed on Nov 5.

According to its website, GCH Retail, which also owns Cold Storage, Mercato and Jasons Food Hall, made the decision to improve efficiency and productivity.

Hamzah said small and medium enterprises that supplied products to Giant would not be affected by the closure.

“Their supplies will be disbursed to all the Giant outlets.”