4 years ago, AEON CO. LTD, the parent company of AEON Malaysia acquired the Carrefour business in Malaysia.
However, business has hardly improved since then and their profit margins continuously remained under pressure. Hence, AEON CO. LTD chose to close 3 of its AEON outlets in Klang Valley.
According to the Edge, the 3 affected AEON outlets are in Kota Damansara AEON, River City Aeon along Jalan Ipoh, and Bangsar South City AEON. After the closure of these 3 outlets, AEON will only have 22 remaining outlets in Malaysia.
Both AEON Big Kota Damansara and AEON Big River City will close down on 28th of February 2017 while AEON Big Bangsar South will remain a little longer and will close down on 15th of March 2017.
A source quoted that the reason for the closure was AEON BIG wanted to consolidate their business to give their customers a better customer service experience while other sources cited other reasons including the impact of Goods and Services Tax (GST), lower consumer purchasing power due to bad economy, higher operation costs, and increased competitions.
Besides AEON’s closure, there are news of other hypermarkets closing down too.