Astro Malaysia ceases operations of Go Shop amidst changes in consumer behavior

Astro Malaysia Holdings (Astro) will be ceasing operations of its home shopping business, Go Shop, from 11 October due to the challenging overall economic landscape and changes in consumer shopping behaviour.

Go Shop is a joint venture between Astro Retail Ventures and its Korean partner GS Retail. The joint venture sees the former holding 60% equity interest while the latter holds the remaining 40%.

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A release to the press stated that as part of the ongoing strategic realignment underway within Astro, including the execution of significant cost-saving measures, both parties have taken the decision to exit the business.

“There has been a significant downturn in this mode of shopping since the pandemic and closure will ensure that Astro’s resources are focused on business lines that contribute the biggest difference to overall operations,” the statement said. According to Astro, Go Shop is not considered its material subsidiary and is not expected to have a material effect on the Group’s consolidated earnings per share, net assets per share or gearing for the next financial year.  

In place of its retail efforts, Astro is expanding its investments in Malaysian local content instead.

Earlier this year, Astro revealed that it plans to invest RM300 million in local content for the financial year which ends on Jan 31 2024. Euan Smith, Astro’s group CEO, told Bernama that Astro has invested RM308 million in local content for the financial year of 2023, which is an 11% increase from the previous year.

Smith added that Astro is focusing on providing customers with better value bundles which they can access all in one place, with the aim of addressing viewers' diverse preferences. 

The underlying principle behind the investment, according to Smith, is Astro’s aim to champion local vernacular content, coupled with its knowledge in storytelling, talent and production capabilities which can appeal to Malaysian audiences. 

He added that in spite of the economic challenges Astro was presented with, the company has been showing positive signs of growth, citing the good take up of Astro Fibre, where its broadband customer base reportedly grew by 28%. 

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