KUALA LUMPUR (Jan 28): Al-Ikhsan Sports Sdn Bhd, which is partly owned by Government-linked private equity firm Ekuiti Nasional Bhd (Ekuinas), is targeting for an annual sales growth of up to 18% over the next three years as part of its three-year strategic expansion plan.

Sales of the sports equipment retailer has grown 32% from RM250 million in 2016 up to RM330 million as at the end of 2019, said its chief executive officer (CEO) Vach Pillutla.

Pillutla said he is confident that Al-Ikhsan will be able to continue posting double-digit growth despite a slowdown in the retail market as it will be supported by the opening of more stores, expanding in house brands as well as debuting a new website.

“Our commitment is to keep Malaysia fit and active by making sports affordable for all. We have pursued a segmented strategy to cater to differing markets and came up with Football Republic which caters just to football and Sneaker Street that offers affordable sneakers,” he said in a media interview last week.

For the next three years, Pillutla said Al-Ikhsan plans to open up to 14 new stores a year around peninsular Malaysia. When asked whether they would consider expanding to Sabah and Sarawak, he said this is something the company will consider in the near future.

They will also be launching a new e-commerce platform for Al-Ikhsan Sports in February.

Established in 1993 by founder Ali Hassan Mohd Hassan, Al-Ikhsan is currently the 64th largest sports retailer in the world. With 130 stores throughout the peninsula with more than 30 brands, the home grown retailer has garnered some 30% in market share in the multi-retailer segment over the years.

In July 2016, Ekuinas acquired a 35% stake in Al-Ikhsan for RM68.6 million.

Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir said the partnership has resulted in helping Al-Ikhsan grow from strength to strength by providing a solid foundation to enable it to be more competitive in the retail market supported by better inventory software system and operations management.

“The retail sector may be experiencing slower growth however sports retail is expected to be resilient. The segment has really grown and as you see around you many people wearing sports attire every day. It will continue to be in good demand,” he said.