the thriving retail sector - personal care electronics

The prospect of caution, but the opportunity is good
It is well known that the local retail industry has been under pressure for quite some time-with a steady stream of Space supplies and a slowdown in consumer spending.
According to recent reports, in the past six years, the average occupancy rate of retail space in Basheng Valley has dropped slightly, reaching five-Annual low of 86%.
But has the local retail industry finally reached a tipping point and things have become so bleak?
Association of shopping and advanced Malaysia
Richard Chan, former president, said the local retail industry was very active and prosperous.
"The 86% occupancy rate is not only credible, but also good," he told StarBizWeek . ".
"This is 'A' in the exam '.
Yes, all shopping malls are hoping to have a 99% occupancy rate. . .
But I'm sure it would be nice to have more than 80% people!
According to Nawawi Tie Leung Sdn Bhd, a real estate service company (NTL)
Earlier this month, as of 2017, total retail sales in the Basheng valley amounted to 61 million square feet, with an estimated current supply of 16 million square feet of pipeline under construction, including 23 projects.
NTL also said that the new shopping malls have been trying to build market share, which has been decreasing and becoming increasingly fragmented.
Oversupply and poor performance NTL said that in recent years, the shopping malls of Petaling Jaya have closed, and the occupancy rate of some new and old shopping centers has increased, the passenger flow is low, and the turnover of retailers has increased.
It says this matches the slower speed (or worse)
, There is no rent growth and there is no growing need to provide incentives for tenants.
Jackie Chan believes that the occupancy rate fell to 86%, not because of oversupply, but because of the poor performance of the weaker shopping malls.
"Calculated at 86%, this means that the average occupancy rate of more than 80% of shopping malls is higher than 86%.
If there is an oversupply, rents will fall.
"But if you go to the top of the big shopping malls and look at it, the rent doesn't go down.
In fact, many people even have potential tenants on the waiting list.
He said that the number of poor-performing shopping malls in the Basheng Valley was very small, affecting 86% of the occupancy rate.
"The old strata mall is pulling these numbers down.
Cheras has a 10 to 15-year-old shopping center with a occupancy rate of between 20% and 30%.
Many of these malls are struggling with occupancy rates, Chan said, because they did not do any proper due diligence before building the mall.
"It depends on fundamentals.
Do these developers know what they're doing?
Is the location right?
What about market segments?
Is there an appropriate accessibility?
Is there a suitable demand?
"Planning is critical.
Developers need to know the risks. A medium-
The investment cost of large shopping centers may be between RM300mil and RM400mil.
What about the big shopping mall?
Some industry watchers believe the growth of e-commerce
Business has an impact on the commercial operation of bricksand-
Mortar retail operators.
However, Chen said
Business penetration in Malaysia is still small.
"There are about 2% so far, so it's still negligible," he said . " He added that many poor-performing shopping malls are taking desperate ways to improve and maintain occupancy
"Many of them give away free giveaways, discounts and even free rentals.
But they are just digging their own graves!
Chan added that just because it was closed at a shopping mall in PJ (
NTL reports)
This does not necessarily mean that the local retail industry is doomed to fail.
"It's just a shopping mall that stands out.
There are about 250 shopping malls in Basheng Valley, and there are about 560 stores in the country.
Earlier this year, it was reported that a well-known industry observer predicted that in the next five years, 50% of the shopping malls in Klang Valley will fight for survival-about 20% of the shopping malls will be closed.
"This has not happened," Chan said ".
"If there are 250 shopping centers in the barsheng Valley, of which 20% are closed in the next five years, it means that up to 50 shopping centers will be closed.
Chen admitted that competition in the retail sector has intensified over the years and occupancy rates have declined.
"The occupancy rate has declined, but it is small and may be as high as 1%.
However, this is comparable to the number of new spaces, that is, between 8% and 10%.
Chan also said the government's move to freeze new shopping malls in China was not a good one.
"This will not improve the conditions.
As you are freezing the construction of a new shopping center, the rent will rise, especially in a shopping center that performs well.
When this happens, there will be problems with potential tenants building their business there.
"Poor performing shopping malls will offer lower rents, but no tenants are willing to go there due to bad business prospects.
"This means that at the end of the day, the top stores will continue to perform well, while the poorly performing stores will continue to perform poorly.
The government has banned high-rise buildings.
From November 1, luxury residential projects, offices and shopping centers with unit costs of more than 1 million yuan will be added.
Datuk Seri Johari Abdul Ghani, the second finance minister, said that, however, this is not a full ban on residents, but a freeze on shopping malls and office space still exists.
Previously, Negara Bank recently conducted a study on the mismatch between housing demand and supply.
However, all projects that have been approved and are in progress will not be affected by the decision.
Cautious sales performance in Malaysia's retail sector declined.
According to a report prepared by the Malaysian retail group, purchasing power fell by 1% in the third quarter (RGM).
In the first nine months of this year, retail sales grew at 1.
According to the report, compared with the same period a year ago, this figure is 9%.
RGM says all retail subsidiaries
In the third quarter, sales in other industries declined, except for pharmacies and personal care and other specialty retail stores.
The industry grew by 6%.
After a brief recovery, department stores-cum-Supermarket
Sales in the industry fell by three in the third quarter. 5%.
Subsidiaries of department stores
The plate slides into red at 4.
The third quarter fell by 4%.
Although supermarkets and supermarkets sell basic necessities,
The industry posted its worst results in the last quarter.
Retail sales of the subsidiary in the third quarter of 2017
The plate fell 5. 2%.
Looking forward, the average growth rate of members is 3.
The fourth quarter of 2017 was 8%.
"Given the recent bad results, RGM has again lowered its annual growth forecast from 3. 7% to 2.
Retail trade in Malaysia was 2% in 2017.
Earlier this week, Datuk Ameer Ali Mydin, general manager of Mydin Mohamed Holdings Bhd, admitted that the local retail sector has been facing a slowdown-which in turn has a direct impact on the hypermarket industry.
However, he is hopeful about the upcoming election. GE)
Consumer spending will be stimulated next year.
"We pray that with the upcoming GE, the government will take steps to increase spending," he said when he launched the iMeriah Takaful insurance plan on Thursday, adding that, he expects growth in the retail sector to be minimized next year.
Jackie Chan also said GE would play a role in determining the prospects for the local retail industry.
"From now to GE. . .
Everyone will be cautious and take the wait-and-see approach.
But that does not mean that people will not move.
Entrepreneurs in particular. . .
I will see it as an opportunity and take risks.
"But there will be some growth.
Christmas is coming. . .
Then the Chinese New Year and Harry Raya.
These events and elections will spur spending.
"Creating Opportunities Datuk Jeffrey Ng, president of the Malaysian REIT Managers Association, believes that local retail will still face challenges in the medium and short term, but given the improved economy and mood, this may soon be
The average occupancy rate was 85.
9% on first quarter of 2017, in Kuala Lumpur and Selangor, in view of the subsidies and incentives provided to tenants, the purchase of well-established mall owners may be supported.
"Johor may be able to absorb supply for a long time with the support of Singaporean shoppers, as well as the expected growth of residents of surrounding development projects, he said.
"Newer neighborhood shopping centers, weaker-located shopping centers and shopping centers with weak retail management or weak market positioning will continue to face downward pressure on occupancy rates and rents.
In a challenging era, retailers should look for opportunities by providing online and physical services, Ng said.
"In this way, shoppers can view and order products online and test or pick products in physical stores.
At the same time, catering tenants who provide delivery services will allow landlords to reduce online sales.
Shopping malls can also consider a mix of art and commerce, he said.
"Mall operators can consider combining art galleries, museum spaces and cultural corners to refresh the mall.
Ng also said retailers can offer a retail portfolio of innovations and services that e-commerce cannot easily or completely replicatecommerce.
Mall operators should focus on catering, service, leisure and entertainment.
They can also provide revolutionary customer service with the latest technology.
Speaking to StarBizWeek earlier this year, Amir said that Malaysia's economic outlook looks bright, noting that China has "a lot of good things", which bodes well for the local retail industry.
"Countries like Malaysia. . .
We have so many wonderful things waiting for us.
"No other country in the world has three or four games to keep in harmony," he said . ".
"It's not a small percentage, it's the majority.
This can cause confusion if maintenance is not careful, but we are well managed.
There are many races in some countries. they have many problems.
Amir said Malaysia is in a good position to take advantage of the economic giants of China and India.
"Malaysia is in the right place.
"China is growing and India is growing," he said . " Indonesia's economy has also been growing aggressively, he added.
China's economy is growing 6.
7%, compared with 6 in 2016.
9% a year ago
According to the World Bank, India is currently the world's fastest-growing economy, with real GDP growth of 7% per cent in 2016.
Indonesia's economy grew by 5 last year. 02%.
"Malaysian Chinese can understand Chinese investors from China, just like Indians in Malaysia can understand Indian investors.
Malays can help Indonesian investors.
"The Chinese are comfortable coming to Malaysia because when they come they see the same thing-they see China to some extent.
They have Chinese restaurants to go.
The Indians came. They went to the Indian mosque.
They have their tosai here, their roti perata.
Feel at home when they come!
"Ameer's view is that Malaysia, which has a diverse culture, will be a paradise for foreign investors, especially those from China and India.
"It helps not only the tourism industry, but also those who want to invest here.
When Chinese people want to invest and hire people, they will definitely find a Chinese first.
The same is true for Indian investors!
"Because they speak the same language and accept the same culture!
Ameer added that many citizens do not realize how lucky they are to live in a country like Malaysia.
"We Malaysians often don't appreciate our gold mines.
Compared with many other countries, our mastery of English is actually quite good.
Therefore, this is a promotion for tourism and investment in Malaysia.
"We also have a wealth of resources, both intellectual and natural.
We are comfortable, but we shouldn't be too comfortable.