The runaway success of augmented reality game Pokémon Go can be a potential game changer in the local retail scene.
UOBKayHian said in a report that the game could also be seen as a revenue booster for retail real estate investment trusts (REITs) and modestly positive for food and beverage (F&B)/convenience store retailers and cellular companies.
“Pokémon Go creates higher footfall in malls. Although turnover revenue accounts for less than 10% of retail REITs’ revenue, sustained higher footfall leads to better rental reversion.
The research house said Sunway REIT has reportedly experienced a double-digit hike in average footfall at its malls.
“Car count has increased by 10%. Similarly, Suria KLCC and Pavilion have also garnered attraction from Pokémon Go ‘hunters’.
UOBKayHian said F&B retailers like Starbucks, OldTown and other F&B retail chains surveyed saw minimal impact with sales being consistent before and after Pokémon Go’s launch.
“Nevertheless the higher footfall in the malls and shop lots could eventually translate into higher sales for the F&B retailers.”
As for convenience stores, the research house said KK Supermart, which operates a chain of 223 convenience stores in shoplots, had reportedly seen a surge in footfall, with the sales of some store shooting up by up to 20%.
“Approximately one-third of both 7-Eleven and Bison’s stores are located in the malls. The higher footfall in the malls may translate into higher sales for these convenience stores.
“However, we note from these companies that at this juncture, impact on earnings is minimal.”
(Source: The Star)