[ad_1]
PETALING JAYA: A retail group says Malaysia’s second quarter (Q2) retail performance has been the worst quarterly result in the history of the country’s retail industry.
Retail Group Malaysia (RGM) described that the retail market is turning into a “bloodbath” with the implementation of the motion control order (MCO) in mid-March to stop the spread of Covid-19, with a rate second quarter growth of -30.9% year-on-year- worse than the initial forecast of -28.8%.
The department stores subsector contracted 62.3%, the worst performing subsector, during the second quarter of this year.
It is followed by the subsector of fashion and fashion accessories (-44.2%), other specialized retail stores (-40.9%) and the subsector of department stores / supermarkets (-34.6%).
“This latest retail sales performance should be the worst quarterly result in the history of the Malaysian retail industry,” RGM said in a statement.
The Malaysia Retail Industry Report (September 2020) was compiled following interviews with members of the Malaysian Retailers Association (MRA) on their retail sales results for the second quarter and remainder of 2020.
Going forward, RGM expects a mixed commercial outlook in the next three months, estimating an average growth rate of -3.4% during the third quarter.
The recovery motion control order (RMCO), which began on June 10, will last until December 31, and the strict physical distancing measures in place mean that shopping malls and retailers will not be able to operate at full capacity compared to before Covid- 19 periods.
Noting that the six-month moratorium on loan payments will end on September 30, RGM said it expects consumers to reduce their spending during the last three months of the year as they resume their monthly payments.
