Lulu Group, the retail empire helmed by Malayali entrepreneur MA Yusuff Ali, has officially wrapped up its hypermarket operations in Malaysia. The shutdown includes all six of its retail outlets in the country — marking the end of an eight-year-long retail experiment that seems to have missed its mark.
The company, which made a splashy entry into Malaysia in 2016, had originally aimed to open 10 outlets within five years. But by 2022, only six had come up, with the last one launched in Johor Bahru. That’s where the story appears to have started losing steam.
Shoppers in Malaysia might have seen it coming. Since the beginning of the year, Lulu stores had been rolling out aggressive discounts and clearance sales. The writing on the wall got clearer when the first notice of closure appeared on the door of the Capsquare outlet in Kuala Lumpur on June 9.
While the company has not made any sweeping public statement, The Edge Malaysia, a leading business daily, quoted Lulu Group confirming that their retail operations were winding down. However, it’s not a total exit — their wholesale business will continue to function in the country.
Industry sources and local reports suggest that the group’s Malaysian retail misadventure had less to do with what they sold and more to do with where they sold it. Instead of setting up shop in high-footfall shopping malls, Lulu is said to have chosen locations that didn’t exactly see crowds pouring in — a move that likely turned footfall into a footnote.
When Lulu entered Malaysia, it had high hopes and ambitious goals. But it seems the group may not have fully cracked the pulse of the Malaysian retail geography. Speculation is now swirling about whether a similar fate might be awaiting their Indonesia operations, where reports indicate comparable challenges.
Although Lulu’s hypermarket dream may have hit a roadblock in Malaysia, the company isn’t walking away entirely. By continuing its wholesale operations, it’s keeping one foot in the door. Whether this signals a strategic pivot or a temporary retreat remains to be seen.
For now, it’s clear the retail lights are out — at least in Malaysia.