Retail in Asia


Malaysia’s retail sales boom in Q2, up 63 percent

The latest figures released by independent retail research firm Retail Group Malaysia (RGM) show Malaysian retail sales rose 62.5 percent in the second quarter of 2022 (Q2 22) compared to the same period in 2021.

Malaysia’s retail industry growth forecast for the full year of 2022 has been revised up to 31.7 percent from its initial estimation of 13.1 percent, taking into account the firm recovery of the industry since the beginning of the year.

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The quarterly retail sales exceeded the expectations of Malaysia Retailers Association and Malaysia Retail Chain Association members, which had anticipated an average growth rate of 25.7 percent for Q2 22. A year-on-year growth of 18.3 percent was reported in retail sales in Q1 22.

The two retailers’ associations predict that Q3 22 retail sales will grow an average of 61.7 percent as a result of the strong second-quarter performance. In May and June of 2021, many retail shops were forced to close due to the Hari Raya festival and Covid-19 standard operating procedures.

A 39.2 percent increase in growth was recorded by Malaysia’s retail industry in the first half of this year compared to the same period last year. For the first time since the beginning of the pandemic, all retail sub sectors experienced positive growth rates in Q2 22. A 59.7 percent increase in retail sales was reported during Q2 22 in the department store and supermarket sub-sector. Furthermore, 152.8 percent year-over-year increase was recorded in the fashion and fashion accessories sub-sector during the same period.

Retail sales in the children and baby products sub-sector grew 65 percent year-over-year in Q2 22, while pharmacy sales grew 31.5 percent. The personal care sub-sector rose 79.8 percent year-over-year in Q2 22, while the furniture and furnishing, home improvement, and electrical and electronics sub-sector rose 81.9 percent.

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The other specialty stores sub-sector (including photo shops, sporting goods stores, musical instrument stores, optical stores, health equipment stores, arts and crafts stores, and direct selling stores) gained 91.2 percent year-over-year in Q2 22.