Q4 retail sales above market expectation with 26.5% growth

 

Retail Group Malaysia says major commercial centres were packed with shoppers and diners by the last month of 2021.

PETALING JAYA: Malaysia’s retail industry recorded a “promising” growth of 26.5% in the fourth quarter (Q4) of 2021 compared with the same period last year, said Retail Group Malaysia (RGM).

In a report released today, RGM said the latest quarterly result was above market expectation as members of the Malaysia Retailers Association and Malaysia Retail Chain Association projected a Q4 growth of only 18.3%.

It attributed the strong growth rate to the lifting of the interstate travel ban on Oct 11 last year and the opening of spas, wellness centres and massage centres to fully vaccinated customers on Oct 1.

RGM also noted that retail sales were higher in December due to two major festivals – Christmas and Chinese New Year – with Malaysians returning to physical stores in both commercial centres and shopping centres located throughout the country.

“By the last month of the year, shopping traffic returned in all major shopping malls located in Malaysia,” it said. “Major shopping centres were packed with shoppers and diners.”

In addition, private consumption rose by 3.7% during the Q4 2021, with RGM attributing the hike to the lifting of movement restrictions in stages since last August.

The group also projected a growth rate of 16.5% for the retail industry for the first quarter of this year.

However, it noted that the Omicron wave had disrupted the industry’s pace of recovery, saying that although major shopping malls were still crowded on both weekdays and weekends, car traffic had started to drop gradually when daily cases were above the 20,000 mark. - FMT