MANY businesses have failed to withstand the challenges caused by the COVID-19 pandemic. They are not able to open as usual due to various kinds of movement restrictions since the start of the pandemic.
Thus, every other day there will be businesses announcing they are throwing in the towel ceasing operations since March last year, with retailers and malls among the worst hit by COVID-19.
For the first time in two decades, Malaysia’s retail sales contracted by as much as 15.8% in last year. According to Retail Group Malaysia (RGM), the 15.8% contraction is worth RM90.5 bil, which is RM21.9 bil lesser than the RM112.4 bil originally projected based on 4.6% growth.
Meanwhile, in 3Q2020, the departmental store cum supermarket sub-sector recorded a negative growth rate of 6.2%.
On that note, eCurve – a popular mall located in Petaling Jaya – will be officially ceasing its operations on March 31.
eCurve has been in operations since 2005, and is one of the most popular hangout spots for residents within the area. Besides housing many famous eateries, Cathay Cineplex and Royale Ice Skating Rink are also the crowd puller for patrons at the mall.
The mall’s management has yet to release an official statement on it. However, several brands/tenants have announced that they are having a moving out sale, at their eCurve outlets.
Despite a sluggish performance last year, RGM expects the retail industry to turn around in this year, at 4.9%. This will translate to RM95 bil in total retail sales.
Nevertheless, it also depends on the situation as any movement restrictions, or inter-district and inter-state travel, will derail the recovery for our retail sector, especially in the Klang Valley which accounts for 60% of the retail sales in Malaysia. – Feb 28, 2021