Store expansions set to buoy Focus Point

PETALING JAYA: Despite the ongoing challenges in retail sentiment, Focus Point Holdings Bhd remains optimistic of its prospects, supported by resilient demand for vision care services, increasing contributions from its expanding corporate client base, and aggressive store openings across the country.

President and chief executive officer Datuk Liaw Choon Liang said the optical business remains to be an essential business.

He noted that the group has quite an “aggressive” store expansion plan this year, particularly for its optical segment.

Liaw said the company may even surpass its previously guided target of eight to 10 new optical outlets.

“In the last five months, we have already opened about five new optical outlets. There are a few more in the pipeline this year,” Liaw told the media following the group’s annual general meeting last Friday.

Focus Point also aims to expand its optical retail presence in East Malaysia by opening its first Focus Point Concept Store in Bintulu and a new outlet in Miri.

“We are quite focused in East Malaysia now. We see a huge untapped market in Sarawak and Sabah,” Liaw said.

The optical and food and beverage (F&B) operator opened its 200th optical store earlier this month.

On the optical segment, Liaw shared that while the retail division still contributes the bulk of revenue, corporate sales have been growing steadily.

The group currently serves over 700 corporate clients under its optical programme.

“In the last three years, we have seen significant growth in the optical corporate segment. We registered a very strong double-digit growth in 2024 compared with 2023.

“Currently, the optical corporate segment contributes less than 20% of our total revenue, but there is a big opportunity for further growth.

“We continue to see the number of participating companies increase every month,” he said.

Under its F&B segment, Focus Point operates its homegrown premium Japanese bakery brand, Komugi.

Recently, the group also introduced Happi, a new concept focusing on frozen yogurt.

The first Happi outlet opened at Mid Valley Megamall in early 2024.

Liaw said the group targets to open two to three stores for its F&B division this year.

“Unlike our optical business, which allows us to expand more aggressively and flexibly, F&B growth requires more careful planning,” he said.

On the Happi business, Liaw said the current store has yet to meet their expectations and there is still much room for improvement, particularly in terms of concept quality and marketing efforts.

“Since we only have one store, we have not achieved the economies of scale in purchasing and procurement. We are still monitoring this business and will approach expansion cautiously,” he said.

Focus Point operates two central kitchens in Kota Damansara.

While the first central kitchen is fully utilised, there is still some capacity available in the second central kitchen.

On this note, Liaw said the group is actively engaging in talks with new corporate clients apart from existing ones like Family Mart and AEON Co (M) Bhd.

“We are also exploring opportunities with new operators, particularly coffee chains,” he said.

Last year, the group had a capital expenditure (capex) of RM16mil to RM20mil. While Liaw did not disclose the exact capex planned for this year, he said it would be “quite close” to last year’s figures.

“Our capex is mainly used to open new outlets and refurbish existing ones,” he said.

Liaw said the company will refurbish and also rebrand some of the stores every year. With rebranding, some outlets may be transformed from Focus Point stores into Optometris Anggun outlets, while others may be converted to Focus Point Signature stores.

“We found that after refurbishing or rebranding our stores, sometimes those outlets can grow by another 20% to 30%, even if they were previously very old stores,” he said.

This year, Focus Point has identified six to eight outlets for refurbishment.

Speaking about US tariffs, Liaw said it may play to the group’s advantage, by boosting its bargaining power with suppliers from China and South Korea, who are still grappling with export restrictions.

“These manufacturers may dump their excess stock soon, allowing us to leverage our volume for better deals,” he said.