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> Why Makro failed in MY, warehouse club x work in MY? Chat

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TSlambsauce
post Apr 4 2019, 03:32 PM, updated 7y ago

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we see many countries have this kind of store, i.e. warehouse/ wholesale club, even our neighbour countries still have today, if it is done right, it should be in a highly competent position to fight with hypermarket, but why did Makro failed in the old days?

I heard ppl saying that Makro was not friendly to customers and had strict rules (so strict that kids were not allowed to enter initially, then only they allowed it after many complaints), also heard that they had poor product assortments, but they did offer bulk purchase that came at lower price right?

How did this actually not work out? considering that we Malaysians are so price-sensitive and consume large quantity (portion) of food?

If we look at Costco’s business model, then copy and apply it here in MY, will it work in today’s environment? Since cost of living is rising quicker than our salary increment?

Why isn’t any company try this format again after the failure of Makro?

Theira
post Apr 4 2019, 03:35 PM

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serious /k

DValentine
post Apr 4 2019, 03:35 PM

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naimahai last time need membership baru kasi masuk

bodo bahalol betul

u sure costco will work well in marehsia

u see la how many giant and aeon big kolos since last year

economy sux weiii

This post has been edited by DValentine: Apr 4 2019, 03:36 PM
hightechgadgets8
post Apr 4 2019, 03:36 PM

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alanyuppie
post Apr 4 2019, 03:37 PM

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Their elitism killed them. I remembered picking up stuff for a bbq party in Makro Selayang.. need borrow friends card to enter.

myteam94
post Apr 4 2019, 03:37 PM

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like to follow my dad and shop at MAKRO

their price quite cheap since most of it are bulk purchase


silent_stalker
post Apr 4 2019, 03:37 PM

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Yea. They have so much rules in the beginning. Must have makro card to enter, kids cant enter n only sell things in bulk.

While other competitors sell in bulk and singles but still cheap. Only a few sen difference than bulk.

After that makro start to follow the competitors, but the quality of the products was below par.
iGamer
post Apr 4 2019, 03:38 PM

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No cheap, no business.

Simple as that.
badboy77
post Apr 4 2019, 03:39 PM

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The Makro in Thailand is doing very well. No need member card or anything can walk in to buy.
jerm57
post Apr 4 2019, 03:40 PM

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Not enough people buy in bulk. Especially B40 group. You would think they would maximise their savings buying in bulk. But the reality is they can't even afford to buy 2 get 1 free. They having trouble just buying 1.
ohman
post Apr 4 2019, 03:41 PM

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Bodo selling in bulk
ohman
post Apr 4 2019, 03:42 PM

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QUOTE(jerm57 @ Apr 4 2019, 03:40 PM)
Not enough people buy in bulk. Especially B40 group. You would think they would maximise their savings buying in bulk. But the reality is they can't even afford to buy 2 get 1 free. They having trouble just buying 1.
*
Kesian
mafioso
post Apr 4 2019, 03:42 PM

 
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maruah tercabar thats why
popopi
post Apr 4 2019, 03:42 PM

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costco in malaysia i will visit....

i need those 4 liter tin of extra virgin olive oil...
iGamer
post Apr 4 2019, 03:43 PM

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QUOTE(jerm57 @ Apr 4 2019, 03:40 PM)
Not enough people buy in bulk. Especially B40 group. You would think they would maximise their savings buying in bulk. But the reality is they can't even afford to buy 2 get 1 free. They having trouble just buying 1.
*
Unless you got huge family, normal family does not need to buy anything in bulk, it's counterproductive.

Their brand selection and retail price is not competitive to normal supermarket.
KLthinker91
post Apr 4 2019, 03:43 PM

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Malaysians can't follow rules

My family and I loved to go to the Makro in Cheras

Cheap cheap and good stuff for grocery shopping

We never had any issues with the rules or whatever, just follow and obey

Too bad. Other people can't tahan, complain and fight with guard. End up salah Makro
saintnotsinner
post Apr 4 2019, 03:44 PM

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QUOTE(lambsauce @ Apr 4 2019, 04:32 PM)
we see many countries have this kind of store, i.e. warehouse/ wholesale club, even our neighbour countries still have today, if it is done right, it should be in a highly competent position to fight with hypermarket, but why did Makro failed in the old days?

I heard ppl saying that Makro was not friendly to customers and had strict rules (so strict that kids were not allowed to enter initially, then only they allowed it after many complaints), also heard that they had poor product assortments, but they did offer bulk purchase that came at lower price right?

How did this actually not work out? considering that we Malaysians are so price-sensitive and consume large quantity (portion) of food?

If we look at Costco’s business model, then copy and apply it here in MY, will it work in today’s environment? Since cost of living is rising quicker than our salary increment?

Why isn’t any company try this format again after the failure of Makro?
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kangkayu
post Apr 4 2019, 03:44 PM

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never will i forget this scene in makro shah alam :

along the delivery bay, a teenager boy was sitting on something like 1,000 tins of milo while waiting for the lorry to be driven from the parking lot ..

also have to borrow someone's orange colour card to enter ...

makro deserved it ... people got money, let them buylah ... need company registration .. ptui
oldtimer05
post Apr 4 2019, 03:45 PM

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QUOTE(DValentine @ Apr 4 2019, 03:35 PM)
naimahai last time need membership baru kasi masuk

bodo bahalol betul

*
One of the reason. Had to follow my fren to buy. Carrefour came to msia, makro was screwed.
TSlambsauce
post Apr 4 2019, 03:46 PM

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QUOTE(DValentine @ Apr 4 2019, 03:35 PM)
naimahai last time need membership baru kasi masuk

bodo bahalol betul

u sure costco will work well in marehsia

u see la how many giant and aeon big kolos since last year

economy sux weiii
*
memang Costco biz model is like this
thats y they can sell at lower prices than hypermarket
by having u to pay upfront (membership fees)
so in order to make full use of it, u will buy more n frequently
ya marehsia x da Costco, some said MY is too small to them

yhtan
post Apr 4 2019, 03:49 PM

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Last time killed by carrefour and tesco, now those hypermarket killed by online business and speedmart 99
FauxHawk
post Apr 4 2019, 03:51 PM

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Fine memories of the place. After sit in the van and jaga the van in the carpark for 1hr while parents go buy supplies for our shop, then can go McDonalds.
sheahann
post Apr 4 2019, 03:51 PM

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i remember NO PLASTIC at makro.. that time everywhere provide plastic, only makro tarak.
they foresee future plastic will be banned but they dint foresee they will chaplap
acbc
post Apr 4 2019, 03:53 PM

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Makro full house daily at Sensok in Phnom Penh. Now known as Aro-Makro.
TSlambsauce
post Apr 4 2019, 03:55 PM

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QUOTE(alanyuppie @ Apr 4 2019, 03:37 PM)
Their elitism killed them. I remembered picking up stuff for a bbq party in Makro Selayang.. need borrow friends card to enter.
*
but thats how warehouse club works

they sacrifice part of their profit margins in order to sell at cheap prices

n compensate that with people registering as members (having membership fees to cover back the margin)

then allowing non-member to go in, but must with member teman

so if u feel inconvenient, u will register as member as well

but Makro back then memang not flexible, coz Costco let u in if u pay a small % of sub-charge
slaveone
post Apr 4 2019, 03:55 PM

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the member card was very annoying. also not often you need to buy in bulk even for families. so instead of having to go to makro and hypermarket, families would go to single hypermarket and get all their stuff from a single place.


estcin
post Apr 4 2019, 03:57 PM

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will always remember their giant cart trolley
bylkw2
post Apr 4 2019, 03:58 PM

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QUOTE(yhtan @ Apr 4 2019, 03:49 PM)
Last time killed by carrefour and tesco, now those hypermarket killed by online business and speedmart 99
*
speedmart memang powderful, crazy expansion
topped as franchise with most sales amount in MY in 2018
:3mushy:3
post Apr 4 2019, 03:59 PM

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QUOTE(yhtan @ Apr 4 2019, 03:49 PM)
Last time killed by carrefour and tesco, now those hypermarket killed by online business and speedmart 99
*
In the future when new and more effective commercial model is discovered, these online businesses will also complain of cannot adept.
bylkw2
post Apr 4 2019, 04:01 PM

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QUOTE(DValentine @ Apr 4 2019, 03:35 PM)
naimahai last time need membership baru kasi masuk

bodo bahalol betul

u sure costco will work well in marehsia

u see la how many giant and aeon big kolos since last year

economy sux weiii
*
i pun x faham giant n aeon big considered as cheap d kan

but when NSK took over aeon big in subang, banyak orang

but NSK got more fresh produce at cheap prices la
tokdukun
post Apr 4 2019, 04:01 PM

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QUOTE(:3mushy:3 @ Apr 4 2019, 03:59 PM)
In the future when new and more effective commercial model is discovered, these online businesses will also complain of cannot adept.
*
Well, they will just die, like Gemfive and Rakuten.
loki
post Apr 4 2019, 04:03 PM

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i am in the supermarket industry. the real reason makro failed is CARREFOUR and GIANT which were the first to offer less bulk at bulk prices and these 2 did not implement "only for members" concept

This post has been edited by loki: Apr 4 2019, 04:03 PM
Exiled_Gundam
post Apr 4 2019, 04:03 PM

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My dad who used to be Makro member stopped going there after Carrefour Wangsa Maju opened. The latter only more expensive by a small margin, and closer to our house at Keramat area.
waxppl
post Apr 4 2019, 04:09 PM

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QUOTE(KLthinker91 @ Apr 4 2019, 03:43 PM)
Malaysians can't follow rules

My family and I loved to go to the Makro in Cheras

Cheap cheap and good stuff for grocery shopping

We never had any issues with the rules or whatever, just follow and obey

Too bad. Other people can't tahan, complain and fight with guard. End up salah Makro
*
oh well, 3rd world country

owai
yhtan
post Apr 4 2019, 04:21 PM

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QUOTE(bylkw2 @ Apr 4 2019, 03:58 PM)
speedmart memang powderful, crazy expansion
topped as franchise with most sales amount in MY in 2018
*
speedmart boss manage to press down the price by giving supplier COD. that's why certain things are cheap and convenience for all.

QUOTE(bylkw2 @ Apr 4 2019, 04:01 PM)
i pun x faham giant n aeon big considered as cheap d kan

but when NSK took over aeon big in subang, banyak orang

but NSK got more fresh produce at cheap prices la
*
NSK is pioneer in fresh goods, look at the aeon big beside velocity, after zap lap NSK took over and it become very ong.
Sedih
post Apr 4 2019, 04:30 PM

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QUOTE(loki @ Apr 4 2019, 04:03 PM)
i am in the supermarket industry. the real reason makro failed is CARREFOUR and GIANT which were the first to offer less bulk at bulk prices and these 2 did not implement "only for members" concept
*
Baa dum tss
DValentine
post Apr 4 2019, 04:41 PM

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QUOTE(bylkw2 @ Apr 4 2019, 04:01 PM)
i pun x faham giant n aeon big considered as cheap d kan

but when NSK took over aeon big in subang, banyak orang

but NSK got more fresh produce at cheap prices la
*
QUOTE(yhtan @ Apr 4 2019, 04:21 PM)
speedmart boss manage to press down the price by giving supplier COD. that's why certain things are cheap and convenience for all.
NSK is pioneer in fresh goods, look at the aeon big beside velocity, after zap lap NSK took over and it become very ong.
*
wtfbbq nsk only good in fruits and vege la

but that comes with a price

the brand name is old skull doesn't have hype, luar nampak low keras

summore got the bau but still bearable,

econsave niamahai busuk lahanat wei

the smell of fish vege etc makes me going to puke
DValentine
post Apr 4 2019, 04:43 PM

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QUOTE(lambsauce @ Apr 4 2019, 03:55 PM)
but thats how warehouse club works

they sacrifice part of their profit margins in order to sell at cheap prices

n compensate that with people registering as members (having membership fees to cover back the margin)

then allowing non-member to go in, but must with member teman

so if u feel inconvenient, u will register as member as well

but Makro back then memang not flexible, coz Costco let u in if u pay a small % of sub-charge
*
padan mukak not flexisible endup kolos

amik kau makro
jay
post Apr 4 2019, 04:53 PM

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makro is the first to introduce gudang style shopping in msia?
DValentine
post Apr 4 2019, 04:55 PM

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QUOTE(bylkw2 @ Apr 4 2019, 03:58 PM)
speedmart memang powderful, crazy expansion
topped as franchise with most sales amount in MY in 2018
*
but but 4 out of 5 stores maciam kena rompak

stocks on shelves tarak kutip laugh.gif laugh.gif


gheyfriend
post Apr 4 2019, 04:59 PM

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99 speedmart full of rats in every branch
DarkNite
post Apr 4 2019, 05:14 PM

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QUOTE(gheyfriend @ Apr 4 2019, 04:59 PM)
99 speedmart full of rats in every branch
*
Big 2legged ones also
rooney723
post Apr 4 2019, 05:17 PM

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but me n my cousins managed to sneak in wif our parents, but after a while kena kantoi n hav to leave hahaha
1qaz1qaz
post Apr 4 2019, 05:21 PM

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QUOTE(KLthinker91 @ Apr 4 2019, 03:43 PM)
Malaysians can't follow rules

My family and I loved to go to the Makro in Cheras

Cheap cheap and good stuff for grocery shopping

We never had any issues with the rules or whatever, just follow and obey

Too bad. Other people can't tahan, complain and fight with guard. End up salah Makro
*
THIS!

apply the member bukan susah pun
last time as kids love to follow my parent go and sit on the big ass trolley and push around
kendo88
post Apr 4 2019, 05:33 PM

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Love visiting the makro outlet in thailand. Very clean and tidy, cheap price for bulk buying and huge variety, friendly staff too.
Only thing i dislike are the forklift driving around during biz hours.

The closest we have is NSK, but quality is not even close to it
TSlambsauce
post Apr 5 2019, 08:41 AM

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QUOTE(myteam94 @ Apr 4 2019, 03:37 PM)
like to follow my dad and shop at MAKRO

their price quite cheap since most of it are bulk purchase
*
did they only sell items in bulk (forcefully) or u were allowed to buy single (one) item as well?
TSlambsauce
post Apr 5 2019, 08:43 AM

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QUOTE(badboy77 @ Apr 4 2019, 03:39 PM)
The Makro in Thailand is doing very well. No need member card or anything can walk in to buy.
*
that's exactly my wonder

seems like it was more of a management issue at here, n not the concept of it (being not acceptable in MY)
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post Apr 5 2019, 08:44 AM

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TSlambsauce
post Apr 5 2019, 08:45 AM

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QUOTE(iGamer @ Apr 4 2019, 03:38 PM)
No cheap, no business.

Simple as that.
*
if it was the case, then it was kinda sad

as it is a good concept, if done right

i wonder could this concept ever come back, provided that it is done properly

do MY have the market to support it, especially in KV perhaps?
myteam94
post Apr 5 2019, 08:50 AM

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QUOTE(lambsauce @ Apr 5 2019, 08:41 AM)
did they only sell items in bulk (forcefully) or u were allowed to buy single (one) item as well?
*
i think both

can't remember much because usually we bought bulk stuff.

TSlambsauce
post Apr 7 2019, 05:06 PM

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QUOTE(loki @ Apr 4 2019, 04:03 PM)
i am in the supermarket industry. the real reason makro failed is CARREFOUR and GIANT which were the first to offer less bulk at bulk prices and these 2 did not implement "only for members" concept
*
ya i think Makro didn't execute the supposedly warehouse club concept well,

as people should have been allowed to purchase single item, and more discount if in bulk

it was kinda a waste for this concept to fail here



as u are in supermarket industry, can i ask is big hypermarket now are moving forwards to stop expanding, but consolidating

as in closing unprofitable stores and opening up compact size store like tesco express

do u think warehouse club can make a great comeback if done right in current environment ?
TSlambsauce
post Apr 7 2019, 05:11 PM

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QUOTE(kendo88 @ Apr 4 2019, 05:33 PM)
Love visiting the makro outlet in thailand. Very clean and tidy, cheap price for bulk buying and huge variety, friendly staff too.
Only thing i dislike are the forklift driving around during biz hours.

The closest we have is NSK, but quality is not even close to it
*
ya it is very sad to see Makro here wasn't done right

do u think warehouse/ wholesale club can make a great comeback if done right this time in current environment?

TSlambsauce
post Apr 7 2019, 05:15 PM

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QUOTE(KLthinker91 @ Apr 4 2019, 03:43 PM)
Malaysians can't follow rules

My family and I loved to go to the Makro in Cheras

Cheap cheap and good stuff for grocery shopping

We never had any issues with the rules or whatever, just follow and obey

Too bad. Other people can't tahan, complain and fight with guard. End up salah Makro
*
cant tahan the rules of why cant allow kids to enter? or?

means memang was management issue liao since cheap cheap good stuffs also can zhap lap
KLthinker91
post Apr 7 2019, 05:49 PM

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QUOTE(lambsauce @ Apr 7 2019, 05:15 PM)
cant tahan the rules of why cant allow kids to enter? or?

means memang was management issue liao since cheap cheap good stuffs also can zhap lap
*
I was a kid, could enter just fine

Rules like needing to sign up as Makro members and bring the card

Also because a lot of items were in bulk, there was additional security to check the carts before exiting against the receipt

Even simple things like these will cause arguments and fights and people black face don't want to layan

Tsk tsk rolleyes.gif
SUSxcves
post Apr 7 2019, 05:52 PM

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I have no idea what Makro is.

never heard of it before.

feels bad.
pg84
post Apr 7 2019, 07:35 PM

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Bcos ada giant, then tesco come
SUSsdin3269
post Apr 7 2019, 07:44 PM

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Makro and whats not, van die here

First must pay membership, then they raised membership fee, Very the sombong cuntpony

You hve to buy 1 doz of sabun for what? End of the day you spend more .
ihm11
post Apr 7 2019, 07:48 PM

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buysellaccount
post Apr 7 2019, 07:50 PM

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QUOTE(sdin3269 @ Apr 7 2019, 07:44 PM)
Makro and whats not, van die here

First must pay membership, then they raised membership fee, Very the sombong cuntpony

You hve to buy 1 doz of sabun for what? End of the day you spend more .
*
long run bukan spend less kah.

anyway, i think they are mainly targeting business owners.
TSlambsauce
post Apr 8 2019, 12:19 PM

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QUOTE(buysellaccount @ Apr 7 2019, 07:50 PM)
long run bukan spend less kah.

anyway, i think they are mainly targeting business owners.
*
ya people are supposedly to spend less in the long run, but

most are not disciplined and firm enough to not get tricked by their own minds to

use the big-size/ bulk-purchase products generously (coz we think that we have got plenty of them to use)
TSlambsauce
post Apr 8 2019, 12:24 PM

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QUOTE(sdin3269 @ Apr 7 2019, 07:44 PM)
Makro and whats not, van die here

First must pay membership, then they raised membership fee, Very the sombong cuntpony

You hve to buy 1 doz of sabun for what? End of the day you spend more .
*
i think the prices weren't low enough to begin with in order to justify the fees paid for membership

coz warehouse club concept memang is like this one, though undeniable they were rather unfriendly (according to many others shared here), thus chasing away customers to shop there

people were supposedly to save in the long run, but we most of the humans aren't so disciplined in using the products adequately (use generously instead) when we know that it is in big size/ many quantity left
khairolnizam
post Apr 8 2019, 12:33 PM

ouh.. ok..
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QUOTE(bylkw2 @ Apr 4 2019, 04:01 PM)
i pun x faham giant n aeon big considered as cheap d kan

but when NSK took over aeon big in subang, banyak orang

but NSK got more fresh produce at cheap prices la
*
I didn't know that.
Now become NSK dy?
No more Aeon Big?
cfa28
post Apr 8 2019, 12:45 PM

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Most hypermarket died because of speed mart.

No one wants to fight for parking and queue up 25 minutes Just to buy a few stuff

Plus speed mart prices are very competitive for most items

Certain niches items cannot be found but for most of the m40 household like me.. 90% can be found


TSlambsauce
post Apr 8 2019, 12:47 PM

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QUOTE(khairolnizam @ Apr 8 2019, 12:33 PM)
I didn't know that.
Now become NSK dy?
No more Aeon Big?
*
eh sorry boss, it was Kota Damansara, my bad
bylkw2
post Apr 8 2019, 12:56 PM

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QUOTE(cfa28 @ Apr 8 2019, 12:45 PM)
Most hypermarket died because of speed mart.

No one wants to fight for parking and queue up 25 minutes Just to buy a few stuff

Plus speed mart prices are very competitive for most items

Certain niches items cannot be found but for most of the m40 household like me.. 90% can be found
*
i think u have just pointed out

99 has been expanding so aggressively and comprehensive until hypermarkets no longer seem to be attractive n worthy to spend time to go

which justifies the pity decline in hypermarket sector in 2018, n booming 99 growth in 2018

i suppose opening up a wholesale club might hardly work well since

disposable incomes are rather limited for those in B40 or even lower M40 in current environment (slowdown in biz, stagnant minimum salary n increment against rising costs of living)

tho it is certainly a good news for those have disposable incomes to spend


KLthinker91
post Apr 8 2019, 01:08 PM

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From: Cherasboy
QUOTE(cfa28 @ Apr 8 2019, 12:45 PM)
Most hypermarket died because of speed mart.

No one wants to fight for parking and queue up 25 minutes Just to buy a few stuff

Plus speed mart prices are very competitive for most items

Certain niches items cannot be found but for most of the m40 household like me.. 90% can be found
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Speed Mart 99 can beat NSK etc because they expand into neighbourhoods and their items are cheap

The only hypermarkets which could survive the Speedmart assault are anchor tenants which SM99 don't do, or bring in more variety than SM99 have eg Tesco and Aeon
hcmalaya
post Apr 8 2019, 01:11 PM

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Many small town traders go there sapu bulk
cfa28
post Apr 8 2019, 01:12 PM

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Nsk can survive cos they have wide selection of wet market produce but smells bad due to the lack of ventilation

At former AEON mahkota Cheras.. Entire mall smells of rotten meat cos of NSK

won't be going there again anytime soon

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