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PETALING JAYA: Senheng New Retail Bhd will spend RM74.3mil in capital expenditure (capex) this year to upgrade and expand its retail stores, as well as to enhance its warehousing and distribution network.

Senheng executive chairman Lim Kim Heng said in a statement that the group was on track to meet its 2022 store launch target, as the company expanded swiftly to capture opportunities by the recovery in consumer spending.

Some RM49mil of capex would be used to launch 21 new and upgraded stores in 2022.

In the statement, the reailer stated its latest store formats on average fetched 30% to 50% higher per-store sales when compared to existing Senheng and senQ stores.

“The number of new stores for 2022 represents one-third of a total of 61 outlets planned from 2022 to 2024,” it said.

Sen Heng New retal store

The remaining RM25.3mil of the capex was used to acquire a 2.9-acre plot of land in Bandar Bukit Raja, Selangor in May to support future expansion and upgrading of the group’s warehousing and distribution network.

Senheng wants to increase the robustness of its warehousing and distribution network by building up fresh capacity and automation to cater to its retail stores and eCommerce deliveries.

Lim said the group was on track to meet its 2022 store launch target as it expanded swiftly to capture more opportunities amid the recovery in consumer spending.

Senheng shares closed the trading week at 60 sen a share, valuing it at RM877.5mil.