It all started in 2003, in the small town of Gemas, Johor. At a time when most retailers were focused on margins and markups, the founder, Dato’ Sri Lee Kar Whatt had something else in mind; accessibility. He opened a modest store called Eco-Shop, selling household items and daily necessities for a flat price of just RM2. The idea was simple but bold: make shopping affordable, predictable, and stress-free for everyday Malaysians.
Fast-forward to today, Eco-Shop is not only Malaysia’s largest fixed-price retail chain; it is preparing to raise over RM800 million through its initial public offering (IPO), with a total of 862.15 million shares being floated on Bursa Malaysia’s Main Market. The company has grown into a multi-billion-ringgit enterprise, but its core mission remains unchanged: to make life easier for the rakyat.
A Brand Built on Simplicity and Trust
Eco-Shop’s formula was elegant in its simplicity: everything at RM2. Customers didn’t need to compare prices or second-guess their spending. They walked in, filled their baskets, and walked out with the confidence that their ringgit had stretched further than it would anywhere else.
The original store stocked plasticware, food, snacks, kitchen utensils, stationery, and toys. What made it special was not just the price, but the trust it built with the communities it served. For families trying to make ends meet, students living on tight budgets, or parents looking to stock up on daily essentials, Eco-Shop became a household name.
By 2018, the company celebrated its 100th store in Gombak, and in 2019, it began expanding into East Malaysia. Despite being largely focused on residential and semi-urban areas, the brand saw continued demand. Its growth was not driven by hype, but by relevance and reliability.
Scaling with Discipline
Eco-Shop’s meteoric growth could have easily come undone without the operational discipline behind the scenes. From the very beginning, the company emphasized cost control, bulk purchasing, and direct sourcing. As the network of stores grew, so did its ability to negotiate better deals with suppliers, allowing it to maintain low prices even as costs rose across the board.
In 2021, Eco-Shop introduced a new concept: Eco-Plus, offering better-quality household items at prices under RM20. The first Eco-Plus outlet in Ulu Tiram, Johor, marked a new era for the company; one that included broader product offerings, digitalisation, and even loyalty rewards via a mobile app.
That same year, the standard price was raised slightly to RM2.20, then to RM2.40 in 2022. And starting 14 April 2025, the company will adjust prices again to RM2.60 across Peninsular Malaysia, and RM2.80 in Sabah, Sarawak, and Langkawi. Yet even with these changes, Eco-Shop remains one of the most affordable retailers in the country.
From Numbers to Narrative
Between FY2022 and FY2024, Eco-Shop’s financial performance told a powerful story of scale and sustainability. In FY2022, the company posted a net profit of RM27.09 million on RM1.57 billion in revenue. By FY2024, the company achieved RM177.28 million in net profit on RM2.4 billion in revenue.
These are the kind of numbers that attract investors, but what makes Eco-Shop truly investable is the clarity of its mission. While continuing to serve the B40 income group and suburban communities, the brand is now eyeing urban centres, too. The opening of its 300th outlet in NU Sentral, a high-traffic shopping mall in the heart of Kuala Lumpur signals the start of that shift.
The IPO and What Comes Next
Eco-Shop’s initial public offering couldn’t come at a more pivotal moment. As Malaysia cautiously rebuilds consumer confidence in a post-pandemic, inflation-conscious landscape, Eco-Shop is offering more than just shares, it’s offering a stake in a business that has proven its resilience and relevance for over two decades.
The IPO will see 862.15 million shares floated on the Main Market of Bursa Malaysia, representing 15% of the company’s enlarged share capital. Of these, 347 million are newly issued shares intended to raise capital for expansion, while 515.15 million are existing shares offered by early stakeholders, including founder Dato’ Sri Lee Kar Whatt and private equity backer Agathis Montana Sdn Bhd.
The funds raised will support several major initiatives:
- Opening 70 new stores across Malaysia, especially in underpenetrated rural and suburban areas
- Constructing a new distribution centre in Selangor, along with satellite facilities in Sabah and Sarawak to support East Malaysia operations
- Upgrading digital infrastructure, including enhancements to its mobile app and self-checkout systems
- Expanding its own-brand manufacturing and supply chain capabilities
The Bigger Picture
At its heart, the trajectory of Eco-Shop isn’t just about growth charts and store counts. It’s about a deep-rooted understanding of what Malaysians need, and delivering on that, consistently.
In a retail landscape where many chase short-term profit, Eco-Shop is focused on long-term trust. With over 320 stores, more than 6,500 employees, and millions of loyal customers, the company has become part of the daily rhythm of Malaysian life.
Whether it’s a student shopping for school supplies, a mother buying frozen snacks, or a retiree stretching every ringgit, Eco-Shop has made itself indispensable.
Eco-Shop shows that retail success doesn’t have to come at the cost of values. That a business can keep prices low without cutting corners, and can grow nationwide without losing touch with its community roots.
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