In mid-2025, shoppers across Malaysia were surprised to find LuLu Hypermarket stores shutting their doors for good. What was once a growing retail name in Kuala Lumpur and other major cities suddenly disappeared from the country’s retail map. So, what exactly happened to LuLu stores in Malaysia — and why did they close?

A Promising Start

When LuLu Hypermarket first entered the Malaysian market, expectations were high. The brand, owned by the UAE-based LuLu Group International, had already achieved massive success in the Middle East and parts of Asia. Its first Malaysian store opened at CapSquare in Kuala Lumpur, offering groceries, imported products, and household items at competitive prices. The company had even announced plans for expansion across Penang, Johor, and other regions.

For several years, LuLu became a go-to destination for imported food items, halal groceries, and affordable electronics. However, behind the scenes, the stores struggled to reach the same level of success they enjoyed in other countries.

Decline and Closure

In June 2025, LuLu Group officially confirmed the closure of all its hypermarket stores in Malaysia. The announcement came after months of speculation, as some branches had begun running large clearance sales and reducing product selections.

According to reports from The Edge Malaysia and Inside Retail Asia, the decision was primarily driven by underperformance and challenging market conditions. The Malaysian retail sector has become increasingly competitive, with strong local players such as AEON, Mydin, Lotus’s, and NSK dominating both urban and suburban markets.

Another factor was location choice. Some LuLu stores were placed in areas with low foot traffic or in shopping complexes that struggled to attract consistent visitors. As a result, daily sales did not justify the high operational costs.

Rising Costs and Shifting Consumer Habits

The closure also reflected broader trends affecting retailers in Malaysia. Rising rental prices, labor costs, and changes in consumer shopping behavior — especially the shift toward online grocery shopping — made it difficult for LuLu to sustain its large-format stores. Even though the brand invested heavily in promotions and discounts, it wasn’t enough to maintain profitability in the long term.

What Remains of LuLu in Malaysia

While the retail and hypermarket operations have ended, LuLu Group has not completely exited Malaysia. The company continues to operate its wholesale and distribution business, focusing on supplying imported goods to other retailers and maintaining business relationships in the region.

For customers, however, this means there are no longer any open LuLu stores in Malaysia as of October 2025. The official website and online shopping platform for Malaysia have also been taken offline.

LuLu business final Thoughts

LuLu’s story in Malaysia serves as a reminder that even well-established international brands can struggle in local markets if conditions aren’t right. Strong competition, high costs, and changing consumer trends have reshaped Malaysia’s retail landscape — and LuLu’s quiet exit shows just how challenging the market can be.