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KUALA LUMPUR (October 30): Robinson Co (Malaya) Sdn Bhd will close its two department stores in Malaysia and begin the liquidation process following its inability to continue operations due to weak demand.
Robinsons, among other department store operators globally, has continued to feel the effects of the Covid-19 pandemic, especially in terms of store sales relative to online sales.
Globally, retail buying patterns are seeing significant shifts from offline spending to online spending with the 2020 Global Ecommerce report showing that Asia Pacific will produce nearly 63% of all digital sales this year.
Robinsons Senior General Manager Danny Lim said that the changing consumer landscape makes it difficult for the company to be successful in the long term and that the pandemic has further exacerbated the challenges.
The department store operator acknowledged that demand for the department store concept has weakened significantly with reports showing a drop in retail sales, recording a negative growth rate of 8.5% in Malaysia for the first quarter of 2020 in comparison with the same period of the previous year.
At the same time, Robinsons stores in Singapore will also undergo a similar liquidation process with the appointment of Cameron Duncan and David Kim of KordaMentha as interim liquidators.
Citing a study on the retail trend, Robinsons said that the world’s big players have exited the industry and more than half of mall-based department stores to close in the next five years.
“Similarly, in Malaysia, the retail industry posted the worst growth rate in 33 years and the outlook remains negative for the remaining months of the year as consumers are expected to reduce their spending,” the operator said. department store.
The two stores are located at The Gardens Mall and The Shoppes at Four Seasons Place.
Datuk Robert Teo Keng Tuan of RSM Malaysia has been appointed as interim liquidator and the interim liquidator will now take control of the company’s assets and evaluate options for obtaining value in order to maximize returns for creditors.
Subject to confirmation, the liquidators expect the stores to remain open for the next several weeks to facilitate final sales to customers before they close.
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