Magazines Archives - 2010 January

Malaysia’s retail leaders upbeat on year ahead
Story 6 - Focus

The retail outlook for Malaysia in 2010 is upbeat, with retail leaders still seeing pockets of opportunity,
and with retail growth forecast at 5%. While consumers are spending differently, pursuing value-for-money products, they are also focusing on service-related activities such as dining, leisure, travel and entertainment. Highend spending has not been curtailed.

In fact, consumers think nothing of spending on mobile phones, BlackBerry and other IT-related products. Tan Hai Hsin, managing director of Retail Group Malaysia, believes retail sales numbers have bottomed out and the industry is slated to bounce back this year. “People are still spending,
although most consumers are exercising caution because of a lack of confidence in the economy,” he said at a Goldsoft Retail executive breakfast briefing held in Kuala Lumpur recently.

He forecasts a growth rate of 5% for the year, noting also changes in consumer behaviour. “While there is a crowd in shopping centres, what they buy has changed.” He advises retail business owners to focus on promotions that provide value for money and best deals for the consumer.

“We have been suffering from an economic crisis in the past 10 years but the feel-good factor is still there. Consumers are still spending. “But the money is moving to the services sector, such as in leisure, dining and entertainment.”

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