PETALING JAYA: Retail Group Malaysia Sdn Bhd (RGM) expects the retail industry and consumer purchasing power to be positive in the second quarter (Q2) of this year although concerns linger.
RGM managing director Tan Hai Hsin said: “The retail industry may see improved performance in Q2 in light of the recent Aidilfitri period but concerns over prospects linger due to external factors that could affect consumers’ purchasing power.”
Due to the positive performance last month, they “may have to revise the projection for Q2 2022 upwards but whether that will result in high overall growth rate for the retail sector remains to be seen”.
Tan said during a press conference yesterday he expects the purchasing power of the public to remain positive but does not foresee its sustainability. “Retail purchasing is positive at this moment, but my concern now is how long can it last?”
In the latest Malaysia Retail Industry Report published in March, RGM projects 6.3% growth in retail sales for 2022, which is an upward revision from its estimate of 6% made in November last year.
Meanwhile, Tan said manpower shortage and lack of supply are two emerging factors that could affect retail sales and retailers.
During the recent Hari Raya Aidilfitri period, retailers were struggling due to lack of staff on hand to operate stores and services.
He observed that some restaurants could not serve their signature dishes to customers due to lack of imported raw materials.
Both these factors will affect business negatively since retailers “cannot operate to their full capacity” due to lack of supply and manpower.
However, this problem is not unique to Malaysia as the same issue is also faced by Singapore.
Tan said he foresees growth for all retail sectors, including those that flourished during the pandemic such as online shopping platforms and food delivery services.
