When retail numbers for KL malls are good, KL property sales numbers should drop. Why? Well, if we have spent everything we have on retail therapy, we would have nothing left for property, right? Haha. Please do not take this humour seriously. My personal belief is that sentiment remains key to market recovery, by far more important than the usual political related news. Only when we believe positive things are on the horizon that the buying would normalize. There are still huge number of my colleagues who does not have an own home yet.
I tried to go to MidValley Megamall today. I said, I tried because I failed. The queue into the car park was too long and I decided to drop by The Curve instead. I needed to go and settle some Maxis stuffs anyway. I parked in eCurve as the car park indicator showed zero parkings remaining in The Curve. I do not consider the mall to be full of people but the Maxis store? I had to wait for over 35 minutes! Yes, most of the people were getting new phone packages, together with new phones.
Sometimes, when we step back and think about it, unless our current phone is “dying” or “dead” why do we need a new phone? I have three reasons; extra money (bonus??), personal branding (image) or last would be just for fun (what the…..). All three showed that that new phone is nowhere near a necessity. So, is the retail scene good in Malaysia? Well, not really but if we have more celebrations, it would help. As reported in thestar.com.my, Retail Group Malaysia (RGM) has projected that the retail industry would grow by 5.9% in Q3 2016, due to the Hari Raya holidays. It said that the growth is also supported by the Minimum Wages Order 2016 that was implemented on July 1. (More money to spend….)
I was at Sunway Pyramid Mall just yesterday, during office hours and the mall was full of people. We wanted to eat at Yoshinoya but the queue was so long that we had McDonald’s in the end. Sigh. Anyway, following happened too. My colleague stood near the entrance for a while because he was trying to catch Pikachu! Haha. Anyway, as per reported in the same article, Mall operator Sunway Malls said that the traffic increase in Sunway Pyramid was 10 percent and one reason was due to Pokemon Go. It was also reported that retailers in the pharmacy and personal care sub-sector continue to have double digit rise, at 11.4 percent during Q3 2016. You have to eat what you have to eat when it comes to health…..
RGM also said, “The projected retail sales growth rate of Malaysia’s retail industry in 2016 by RGM stays at 3.5% or RM99.5bil in values.” Actually, I think this is still positive for the industry. At least not all the malls would have to think of shutting down in 2016. As all of us have noted, many malls have started to struggle and many may have to reorganise, cut expenses and try to get more visitors through different kinds of activities. Perhaps what could happen is that Q4 may be supported by the next huge celebrations, Christmas. After all, everyone should get a gift during Christmas and offices may be organising gift exchange parties too. Yes, I would also be buying gifts for my kids and my wife even if we are not Christians. Just wanted to feel joyous. I am happy to shop for gifts and they are happy to receive them from me. Hey, let’s push Q4 2016 retail numbers higher! Happy shopping!
written on 31 Aug 2016
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