Astro Malaysia Holdings Bhd (AMH) has decided to close its home shopping business under “Go Shop” from effective Oct 11.
Astro Malaysia said in a statement, citing that there has been a significant downturn in this mode of shopping since the Covid-19 pandemic. The statement further added that the closure will ensure that Astro Malaysia’s resources are focused on business lines that contribute the biggest difference to the overall operations.
Go Shop started in 2015 as Astro Malaysia’s first foray into the e-commerce domain, enabling Malaysians to shop anytime and anywhere 24/7. The home shopping platform was also present in Singapore and Brunei.
Astro GS Shop Sdn Bhd (AGSS) which operates “Go Shop” is a joint between Astro Retail Ventures Sdn Bhd (a wholly owned subsidiary of AMH) and its Korean partner, GS Retail Co Ltd (GSR).
The joint venture saw the former holding 60% equity interest while the latter held the remaining 40%.
“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,” AMH said in a statement.
“Go Shop is not considered a material subsidiary of AMH and is not expected to have material effect on the group’s consolidated earnings per share, net assets per share or gearing for FY24,” it added.
According to Astro Malaysia’s 2023 annual report, the group had fully impaired its cost of investment in Go Shop, which is held by ARV, amounting to RM48.1 million, following the subdued consumer sentiment, changes in consumer behaviour as customers return to physical stores, and continuing losses during FY2023.
