DFI Retail Group recently disclosed its three-year strategic growth plan, underscoring the development of a franchise model and launching more proprietary brands. Headquartered in Hong Kong, the group aims to use these strategies to enhance customer service across Asia’s varied markets and achieve exponential profit growth.
One of the critical components of the plan is growing the health and beauty as well as convenience store networks using a capital expenditure-light franchise model. The health and beauty arm of the group operates the Mannings chain in Mainland China, Hong Kong, and Macau, and Guardian stores in Indonesia, Malaysia, Singapore, and Vietnam. The group’s convenience store network includes 7-Eleven outlets in Hong Kong, Macau, Southern China, and Singapore.
The company also plans to introduce more of its brand products, concentrating on affordable, high-quality options that cater to Asian consumers’ escalating demand for value. Other strategies include escalating store sales density, using customer data insights for digital growth, and maintaining strict capital allocation and cost efficiency.
DFI’s CEO, Scott Price, stated, “Customers across Asia increasingly desire quality and convenience at excellent value. With our extensive format portfolio and omnichannel capabilities, we can effectively meet these needs across all channels.”
Aligned with these aims, the group anticipates delivering an underlying profit Compound Annual Growth Rate (CAGR) of 11-15 per cent, aspiring to achieve US$310-350 million by 2028. The group also expects an organic subsidiary revenue growth of 2-3 per cent annually through 2028 and plans to reach online sales penetration of 7-10 per cent by the same year.
Price further added, “Our robust balance sheet and disciplined capital use provide us the flexibility to invest in growth while consistently increasing returns to shareholders in the coming years.”
As of December 1, DFI and its partners operated over 7,400 outlets across 12 markets. Despite flat sales growth in the first half of the fiscal year, the group reported double-digit profit growth.
What is DFI Retail Group’s plan for the next three years?
DFI Retail Group plans to develop a franchise model, introduce more of its own brands, and achieve double-digit profit growth.
What does the franchise model expansion involve?
The expansion involves the health and beauty and convenience store networks, which include the Mannings chain and 7-Eleven outlets, among others.
What are the group’s financial expectations by 2028?
The group aims to deliver an underlying profit Compound Annual Growth Rate (CAGR) of 11-15 per cent, hoping to achieve US$310-350 million. It also targets an organic subsidiary revenue growth of 2-3 per cent annually and online sales penetration of 7-10 per cent.
