Kuala Lumpur: A report on the Malaysian retail industry released today has found that the sector recorded a below-par second quarter this year, with just 0.6 per cent growth in sales compared to the same period last year.
The report by independent research firm Retail Group Malaysia (RGM) pointed to how respondents from the Malaysia Retailers Association (MRA) and Malaysia Retail Chain Association (MRCA) had expected a 1.7 per cent growth rate instead.
“Thus, this latest result was 65 per cent below estimate,” said the report.
Among others, the report said that while sales were encouraging prior to the Aidilfitri season in the first quarter of the year, overall festive sales were below market expectations.
It noted how despite the attractive ringgit and visa-free entry had brought foreign tourists, spending were curtailed among locals who needed to manage their monthly expenses carefully in order to maintain their lifestyles.
“The never-ending Israel-Palestine conflict had affected businesses of certain international retail brand,” it added.
It compared the growth to the national economy, which grew by 5.9 per cent.
Other findings included:
- Department stores were the worst performing in the quarter, with a fall of 13.8 per cent in sales
- This was followed by furnitures (-4.6 per cent) and supermarket (-3.9 per cent)
- The best performers were pharmacy stores and personal care, which grew by 7.6 per cent
- The second-best performers were mini-markets and convenience stores (7 per cent)
- The most hopeful sectors in the next quarter were fashion outlets which anticipated 7.4 per cent growth and supermarkets (7.3 per cent)
The report also said that the retail sector in the country is anticipated to expand by 3.6 per cent during the third quarter of 2024.
Meanwhile for the last quarter of 2024, the retail industry is hopeful of 3.2 per cent growth rate after a weak performance a year ago.
