Could hypermart chain Lulu Group's KL shutdown be due to its ‘silly' name, unglamourous location?

THERE are many indicators used to gauge economic climate.
One of them is when large businesses start shutting down, proffering a variety of reasons ranging from tough business environment, heightened competition and price sensitivity.
The latest casualty in the ultra-competitive FMCG (fast moving consumer goods) retail sector is the Lulu Group which has shut down its hypermarket operations in Malaysia. However, it will continue to run the wholesale division in the country.
According to The Edge, the United Arab Emirates (UAE)-based Lulu Group had been making various rounds of promotions and clearance sales at its outlets earlier this year, culminating in a closure notice posted on the doors of its first ever outlet at CapSquare in Kuala Lumpur about the cessation of operations effective June 9.
News of the closure was also shared on Facebook on the Malaysia Shopping Mall page with the poster claiming that the Lulu Group had suffered losses of up to RM1 bil in the past decade (this remain unverified).
The FB post has generated plenty of comments with netizens positing why the hypermarket operations was a failure.
The name of the hypermarket was cited as a possible reason with some presumably Feng Shui fans highlighting that it sounds like 'stupid' in Cantonese.
The mall's locations were also cited as possible reason for the closure with CapSquare labelled as 'unglamourous'.
One commenter surmised that Lulu's closure was down to tough economic times. With the cost-of-living crisis biting hard, consumers are spending only on essential household items which they tend to pick up in smaller quantities at neighbourhood convenience stores, namely 99 Speedmart and KK Super Mart.
Pointing out that Lulu hypermarkets were thriving in the Middle East serving Indian customers, it was argued by one commenter that perhaps the approach of targetting this demographic could not sustain its operations here in Malaysia.
Stiff competition in this segment was also cited as a potential reason for Lulu shutting its doors.
Modern consumers mainly buy online was the reason posited by another netizen. He also pointed out that other businesses have contingency plans such as a hotel converting into luxury small home-office units.
It was also highlighted that the owner of Lulu Group – M.A. Yusuff Ali – was in the top 50 richest individuals in India, perhaps to show that the closure was down to business reasons alone and not because the parent company was going bust or had cash-flow issues.
A glut of retail outlets was also blamed for this hypermarket brand's demise.
Some though did contend that it was unlikely that a business would only pull out after posting losses of RM1 bil. The plug would have been pulled sooner. One commenter even suggested that Lulu Group was 'cashing out' having made enough profit.
Whatever the reason, it is a worrying sign when hypermarkets dealing in FMCG goods have struggled.
But tough times breed tougher business entities, ie those that can offer better services and better pricing will not only survive but thrive. Therein, lies the silver lining. – June 12, 2025

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Borneo Post

44 minutes ago

• Borneo Post

Taxing taste of Malaysian politics

PM Anwar shared this image of himself pushing a wheelbarrow, captioned 'New Year Clean-up' in ushering in 2025. The photo was widely welcomed by Malaysians, many interpreting it as a hopeful metaphor for a national reset. Yet as SST kicks in, some wonder: will the clean-up go beyond optics – down to the kitchen table? — Photo from Facebook MALAYSIAN politics has certainly entered a new flavour spectrum with the words of politicians not about budget, economy or investment but about what's on our meal plates. Acting Muda president Amira Aisya Abd Aziz recently whipped out a storm by comparing Prime Minister Datuk Seri Anwar Ibrahim's supposed love for avocado toast to Najib Razak's infamous switch from rice to quinoa. When 'kolo mee', 'roti canai' and 'nasi lemak' are breakfast of the people (despite rising prices), bringing up avocados and quinoa of the present prime minister and a former one, respectively, which are out-of-touch with everyday Malaysia, seems like a strategic move of Muda. It speaks to how political branding now happens not in speeches or slogans, but in what leaders are seen eating, wearing, or doing on a holiday. But let's unpack this properly – before someone throws a durian into the batter. The timing of Muda's food commentary was not accidental. It came just as the government announced the expansion of the Sales and Service Tax (SST) scheduled to take effect this July 1 with the imposition of five per cent to 10 per cent sales tax on selected non-essential goods and broaden the service tax to include services such as rental or leasing, construction, finance, private healthcare, education, and beauty. For many urban middle-class Malaysians, this tax hike stings. Expanded sales tax includes imported fruits; thus, avocado being considered imported goods was uttered by Anwar: 'If the rich want to eat avocados, then they will need to pay a little more.' So what better way to channel discontent than by framing it as a class issue? Muda's avocado analogy may seem like harmless satire, but it taps into a deeper frustration – that leaders may be preaching belt-tightening while they are enjoying imported produce. Whether or not Anwar actually had avocado toast is beside the point. The image has taken root. And in politics, perception is often more powerful than fact. Najib's quinoa moment in 2018 became a national punchline. For a leader under scrutiny for corruption and excess, his choice of a trendy, protein-packed South-American grain, instead of humble rice, was the icing on a chocolate cake. In contrast, Anwar's 'avocado' is not being mocked as luxurious, but to signal detachment from the people. The narrative is 'the Prime Minister does not know the suffering of the people'. This shift is unfavourable to the Madani Government. It shows that younger politicians are now savvier in using cultural signals such as food, fashion and fitness routines to frame their critiques. But it also raises a key question – is this fair game? Both avocado and quinoa are dear to me – not as symbols of elitism, but out of necessity and circumstance. Back when Najib's quinoa quote made headlines, I was struggling with gluten intolerance. I had to replace wheat with quinoa. It was not about being trendy; it was about survival. For two years, quinoa — pricey as it was — became part of my daily diet until, thankfully, I could slowly reintroduce wheat without discomfort. As for avocados, they were not always this high-end item that you now find on café menus with microgreens and olive oil. When I was stationed in Sabah, avocados were so abundant and cheap, I could have avocado toast at any time I wanted without it costing me more than a regular breakfast. In fact, Sabah grows them and in recent years, Sarawak does too. After all, it is a superfood and many lower income groups could afford locally produced avocado. Ironically, Anwar may have picked a food that is not elitist at all — just under-appreciated local produce. That's where I find him a little naïve. He could have used his breakfast moment to celebrate Malaysian farmers and promote food security – not unwittingly serving himself on a silver platter for social media roast. Quoting Prof Dr Ramasamy: 'At least he should have gone one step further by urging Malaysian farmers to plant avocado trees to bring down the imported fruit. 'I am sure his buddy Mohammed Sabu, the Minister of Agriculture, might welcome it especially coming from the Prime Minister.' Muda's strategy could be seen as clever youth-oriented political branding. In a crowded opposition landscape, they need to be louder and fresher. But surely Muda, a party built on reform and ideas resorting to comparing grocery lists risks appearing superficial. More importantly, it shifts the focus from policy to personality. The expanded SST, for instance, deserves serious scrutiny. Is it a fair way to broaden the tax base? Will the government ensure these revenues are channelled into healthcare, education, and cost-of-living relief? Could exemptions be refined to protect vulnerable groups? These are the questions worth debating – not whether Anwar spreads avocado over its breakfast toast. Likewise, when Opposition leaders resort to metaphors instead of manifestos, we must ask – where's your alternative policy? What would Muda do differently on SST, tax reform, or public spending? In the end, it is not what our leaders eat that should matter most – it is what they serve us. If Anwar's policies can stabilise the economy, lower inflation, and protect the poor, then let him enjoy his avocado. If Najib's quinoa came with billion-ringgit scandals, then no amount of quinoa can redeem that taste. And if Muda can only offer critiques based on food preferences, then perhaps it is time for them to go back to the kitchen – and cook up better policies. Because for most Malaysians, the question remains simple – can I still afford breakfast next month? anwar ibrahim cost of living economy Madani malaysia SST tax

BusinessToday

4 hours ago

• BusinessToday

Malaysia Courts Silicon And Scalpel Giants In San Francisco

Malaysia's global investment drive continues to gain momentum, with two major US tech firms, Halo Industries and Intuitive Surgical, exploring opportunities to set up operations in the country, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. In a Facebook post during his visit to San Francisco, Zafrul revealed that Halo Industries, a leading American semiconductor player, is considering expanding to Malaysia — a move he said would elevate the nation's role in the global semiconductor supply chain. This aligns with Malaysia's National Semiconductor Strategy (NSS) and the New Industrial Master Plan 2030 (NIMP2030). 'Not the Halo game, but Halo Industries, one of the leading semiconductor companies in the United States,' Zafrul quipped in his post, thanking the company for its trust in Malaysia. In a separate engagement, the minister also met with executives of Intuitive Surgical, a company behind advanced robotics and AI-driven surgical platforms. Discussions focused on Malaysia's potential as a high-tech investment hub for the medical technology sector. Zafrul said the government, through MITI and the Malaysian Investment Development Authority (MIDA), is fully committed to supporting such initiatives, which are expected to create high-skilled jobs and drive sustainable economic growth. 'The Malaysian government, through MITI and MIDA, is committed to fully supporting this effort,' he said. Related

The Sun

8 hours ago

• The Sun

Google's RM9.4 billion AI, cloud investment to boost Malaysia

KUALA LUMPUR: Tech giant Google's investment in Malaysia is expected to continue driving Malaysia's artificial intelligence (AI) and cloud computing economy. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who is currently on a working visit to Washington, United States, met with Google representatives to discuss how the company can continue to drive AI development in Malaysia, strengthen cybersecurity and invest in digital skills. 'The government is committed to providing full support and ensuring a conducive investment climate for high-quality investments,' he said in a Facebook post. He added that Google's strategic investment of RM9.4 billion to set up its first data centre and Google Cloud region in Malaysia is expected to generate RM15.04 billion in long-term economic impact and create 26,500 jobs by 2030. 'Thank you, Google, for your continued confidence in Malaysia. Together, we are building a brighter digital future,' he said.