Lulu Group has officially ended all hypermarket operations in Malaysia due to consistent underperformance. While the retail division has shut down, the company confirmed that its wholesale operations will continue.
End of operations at CapSquare
The closure was preceded by several months of clearance sales and promotional offers. The final notice came at Lulu’s first Malaysian store located at CapSquare in Kuala Lumpur, announcing the end of retail activities.
Entry in 2016 with ambitious plans
Lulu entered the Malaysian market in 2016, announcing a US$3 million investment plan to open 10 hypermarkets within five years. At its peak, Lulu operated six stores, the last one launched in Johor Bahru in October 2022.
Location choices cited as key issue
Market observers pointed out that Lulu’s poor choice of store locations contributed heavily to the underperformance. Commenters on Reddit noted that the company opened outlets in malls with low foot traffic like Jakel KL, Amerin Mall, and 1 Shamelin Mall. Many believe better results could have been achieved with more strategic locations.
Similar pattern seen in Indonesia
Lulu’s exit from Malaysia follows a similar trend in Indonesia. The company recently closed its outlet at QBig BSD City in Banten province, also after a phase of clearance sales.
Lulu’s global presence
Lulu Group International, founded by MA Yusuff Ali in 2000, is a UAE-based conglomerate with headquarters in Abu Dhabi. The group operates hypermarkets across the Middle East and Asia. Its Indian head office is located in Kochi, Kerala.
