"Retail sales are getting weaker, but store rental (in shopping malls) keep going up", this could be a typical feedback from retailers who run brick & mortar stores.
"Retail sales are getting weaker, but store rental (in shopping malls) keep going up", this could be a typical feedback from retailers who run brick & mortar stores.
There are various factors contributing to weaker retail sales in general, mainly due to rising of living cost, cautious consumer spending due to upcoming GST, competition and more options available online via e-commerce sites.
This is further justified by a report by The Edge back in November 2014, on Malaysia retailers contend with weaker sales.
Even though shopping malls are still always packed, retail sales are declining especially those in fashionable and non-essential items, according to Tan Sri Teo Chiang Kok, whose family owns a controlling stake in the 1 Utama Shopping Centre.
Datuk Wira Ameer Ali Mydin, Managing Director of Mydin Group has also revealed in the same report that their same-store sales are down, even the sales of basic items are down 3%.
So, what's next for retail?
Obviously, e-commerce is one of the options for traditional retail brands to consider as their new business strategy and reaching out to younger consumers.
Even though e-commerce penetration in Malaysia is still low when compared to the total retail market size, the online transactions growth rate is projected at 20% to 30% year-over-year.
Top retail brands in Malaysia are generally conservative in adapting e-commerce but we have observed more e-commerce setups in the past 1-2 years and we expect more to follow suit.
Here is the compilation of top 3 retail brands in each category (by market share), whether they have setup their own online store. Do take note that some of the brands do setup online channel in online marketplace but it is not being considered in the table below.
* Own online store definition: a website with shopping cart and online payment facilities
Update: We have checked again during December 2016 and update the table above in red. As this was originally posted in 2015, there are 6 retailers who have setup own online store since, but there are also 5 retailers who have suspended or shutdown their online store during the same period.
Based on the sampling above, 18 (19 by 2016) out of 36 top retail brands in Malaysia have setup their own online store. Some brands above have presence in online marketplaces without own online store, therefore we can conclude that more than 50% of top retailers in Malaysia are already doing e-commerce.
Whether those e-commerce sites are gaining traction or successful is another matter altogether, you can find out more from the top 10 e-commerce sites by leading retailers in Malaysia.
There are various factors contributing to weaker retail sales in general, mainly due to rising of living cost, cautious consumer spending due to upcoming GST, competition and more options available online via e-commerce sites.
This is further justified by a report by The Edge back in November 2014, on Malaysia retailers contend with weaker sales.
Even though shopping malls are still always packed, retail sales are declining especially those in fashionable and non-essential items, according to Tan Sri Teo Chiang Kok, whose family owns a controlling stake in the 1 Utama Shopping Centre.
Datuk Wira Ameer Ali Mydin, Managing Director of Mydin Group has also revealed in the same report that their same-store sales are down, even the sales of basic items are down 3%.
So, what's next for retail?
Top Malaysia retail brands, are they online?
Obviously, e-commerce is one of the options for traditional retail brands to consider as their new business strategy and reaching out to younger consumers.
Even though e-commerce penetration in Malaysia is still low when compared to the total retail market size, the online transactions growth rate is projected at 20% to 30% year-over-year.
Read also: Top 8 reasons why traditional retail must sell online
Top retail brands in Malaysia are generally conservative in adapting e-commerce but we have observed more e-commerce setups in the past 1-2 years and we expect more to follow suit.
Here is the compilation of top 3 retail brands in each category (by market share), whether they have setup their own online store. Do take note that some of the brands do setup online channel in online marketplace but it is not being considered in the table below.
Category
|
Retailer
|
Own Online Store
|
| Grocery | Giant |
No
|
| Tesco |
Yes
|
|
| AEON Big |
No
|
|
| Convenience Store | 7-Eleven |
No
|
| KK Super Mart |
No
|
|
| 99 Speedmart |
No
|
|
| Departmental Store | AEON |
Yes (Shoppu)
|
| Parkson |
No
|
|
| The Store |
No
|
|
| Apparel & Footwear | Padini |
Yes
|
| Bata |
Yes
|
|
| Kamdar |
Yes
|
|
| Electronics & Appliance | Senheng |
Yes
|
| Harvey Norman |
Yes
|
|
| Best Denki |
No
|
|
| Health & Beauty | Guardian |
Yes
|
| Watsons |
Yes
|
|
| Caring Pharmacy |
Yes
|
|
| Beauty Specialist | The Body Shop |
Yes
|
| Sa Sa |
Yes
|
|
| L'Occitane |
Yes
|
|
| Home & Garden | IKEA |
No
|
| Courts |
Yes
|
|
| ACE |
No
|
|
| Jewellery & Watch | Poh Kong |
No
|
| Tomei |
No
|
|
| City Chain |
No
|
|
| Bookstore | Popular |
Yes
|
| MPH |
Yes
|
|
| Borders |
No
|
|
| Pet | PetsMore.com |
Yes
|
| Pets Wonderland |
No
|
|
| Pets Lover Centre |
Yes
|
|
| Sports | Al Ikhsan Sports |
Yes
|
| Takasima |
No
|
|
| Royal Sporting House |
No
|
Update: We have checked again during December 2016 and update the table above in red. As this was originally posted in 2015, there are 6 retailers who have setup own online store since, but there are also 5 retailers who have suspended or shutdown their online store during the same period.
Based on the sampling above, 18 (19 by 2016) out of 36 top retail brands in Malaysia have setup their own online store. Some brands above have presence in online marketplaces without own online store, therefore we can conclude that more than 50% of top retailers in Malaysia are already doing e-commerce.
Whether those e-commerce sites are gaining traction or successful is another matter altogether, you can find out more from the top 10 e-commerce sites by leading retailers in Malaysia.
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