Uh oh, looks like another one is about to bite the dust.
Reports have confirmed that Aeon Co (M) Bhd will be selling off the Aeon Mahkota Cheras shopping mall due to its underwhelming performance. It is believed that earnings contribution has been one of the lowest to the company.
The Japanese retail giant has struck an agreement with Foremost Wealth Management Sdn Bhd to sell the 2-storey 304,920 square feet retail mall for RM87.8 million. For those that didn’t know, Aeon Mahkota Cheras shopping centre is 7 years old and is among the company’s smallest malls.
“While details of the Aeon Mahkota Cheras mall were not disclosed (i.e. revenue, operating profit), we understand that the mall has been underperforming over the years and contribution to Aeon’s retailing segment was minimal,” Maybank was quoted as saying.
Do you think that Aeon Co (M) Bhd is making the right decision by closing down the Mahkota Cheras outlet? Let us know your thoughts in the comments section below.