Tuesday 19 Mar 2024
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KUALA LUMPUR (March 24): AEON Co (M) Bhd said Malaysia’s retail industry is still undergoing consolidation as the sector continues to witness outlet closures of established local and foreign retailers throughout the country since January this year.

The Edge Malaysia business and investment weekly in its latest March 26 - April 1, 2018 issue, quoted AEON Co executive director Poh Ying Loo as saying although industry-wide consolidation is ongoing, he expects fewer retail outlet closures this year.

“The year 2016 was the worst, 2017 was a recovery year. As for 2018, at the moment, it is looking positive but we do not know how things will turn out for the rest of the year," Poh told The Edge.

The Edge also spoke to Retail Group Malaysia Sdn Bhd (RGM), which tabulates data on behalf of the Malaysia Retailers Association. RGM managing director Tan Hai Hsin said retail outlet closures of local and foreign chain stores happen every year for various reasons including reduced consumer spending, intense competition, wrong product offering and disputes with principals.

“The weak Malaysian currency (since 2015) had also led to poor investment returns for foreign retailers. Some parent companies closed their Malaysian outlets because their returns had turned negative due to an unfavourable exchange rate,” Tan said.

For a better understanding on the Malaysian retail sector, kindly pick up and read the latest issue of The Edge.

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