Retail industry performance in 2Q17

As per Retail Group Malaysia’s (RGM) Malaysia Retail Industry Report for August 2017 based on Malaysia Retailers Association’s (MRA) members’ retail sales performances for 2Q17 and outlook, Malaysia retail industry reported an encouraging growth rate of 4.9 per cent in retail sales, as compared to 7.5 per cent during the same period in 2016.

“This latest quarterly result met market expectation. Members of MRA projected the second quarter growth rate in June 2017 at 4.8 per cent,” RGM said.

“After a dismaying performance in the first three months of this year, the retail industry managed to recover slightly during the second quarter.”

RGM highlighted that the Hari Raya festival that began at the end of May boosted retail sales during this period.

“Malaysian consumers shopped more with heavy price discounts offered by retailers located throughout the country.”

The group went on to note that for the first six months of this year, the retail sale growth rate was 2.5 per cent, as compared to the same period a year ago.

Delving into the retail subsector, RGM observed that as compared to 1Q17, sales of all subsectors rebounded.

For instance, RGM noted that the department store cum supermarket sub-sector recovered from poor performance during the first three months of this year with a growth of 4.1 per cent during 2Q17 while the department store sub-sector bounced back from its poor results earlier this year with a strong growth rate of 15.1 per cent during 2Q.

“This sub-sector is the best performer during this latest quarter as compared to other retail sub-sectors,” the group said.

As for the supermarket and hypermarket sub-sector, RGM revealed that it reported an improved growth rate of 0.8 per cent during 2Q17 as the heavy price discounts offered by grocery retailers to generate better sales led to depleted profit margin during the quarter.

Meanwhile, the fashion and fashion Accessories sub-sector returned to black with a growth rate of 2.5 per cent during the second quarter of 2017, as compared to the same period a year ago, RGM reported.

“During the second threemonth period of this year, sale of the pharmacy and personal care sub-sector improved further with a growth rate of 7.9 per cent, as compared to the same quarter a year ago,” the group added.

“The other specialty stores sub-sector (including photo shops, children-related stores, second-hand goods’ stores, TV shopping channels, toys’ stores as well as restaurants) reported a better growth rate of 6.3 per cent during the second quarter of 2017, as compared to the same period last year.”