THE retail sector is hopeful that the mass Covid-19 immunisation plan will help restore business by year’s end.

There are early signs, as sales have picked up slightly since the government eased movement restrictions and allowed stores to reopen two days before Chinese New Year on February 10, said Federation of Malaysian Fashion, Textiles and Apparels (FMFTA) chairman Tan Thian Poh.

He said clothing and textile retailers were now trying to clear stock that was purchased before the lunar new year. They had hoped to make good sales for the festive season but were unable to do so as the government’s announcement to reopen stores came too late.

As long as the government does not impose another round of movement curbs and store closures, Tan said, together with the vaccine roll out, the sector is hopeful that business volume can recover by 70% to 80% this year.

“Post-Chinese New Year sales are still slow. We are still clearing the new year stock.

“If the national immunisation plan goes smoothly and there are no more shut-downs by the government, we are confident that the apparel and retail industry can fully recover by year-end.”

Tan feels that consumers are still deterred from shopping for apparel as Covid-19 infections remain high at between 2,000 and 3,000 daily.

Additionally, the new norm of working from home has reduced demand for new clothes and shoes.

Malaysia Retail Chain Association (MRCA) president Shirley Tay said clothing chain stores saw an uptick in sales of 40% to 50% because of the Chinese New Year period, but footwear sales have not improved.

On the other hand, chain stores that are doing well are those selling medicinal and health products.

Overall, chain store operations in general suffered a serious setback during the movement control order, Tay said. With a small rebound after reopening on February 10, performance is still poor.

However, for restaurant chain stores, business has increased by 50% after the two-persons per table limit for dine-in was lifted.

Nevertheless, despite these improvements, many chain store businesses are running on loans, having exhausted their cash flow during the earlier stages of lockdown since last year.

“Many businesses have requested a loan moratorium from banks. However, they still have to make interest payments,” said Tay.

She too, believes the arrival of the Covid-19 vaccine will help the industry and will restore consumers’ confidence.

“Consumption patterns have changed because of the high number of Covid-19 cases.

“I hope that with the arrival of the vaccines, consumers will start to purchase goods wisely. Otherwise, there will only be sellers and no buyers, and businesses will be in trouble.”

Tay also looks forward to the possibility of green lanes with certain countries so that foreign tourists can enter Malaysia and stimulate the local economy.

“At present, we can only rely on local consumers to drive the consumer market. If foreign tourists can enter, I believe the economy will rebound and recover.”

Retail outlets still have to observe strict Covid-19 standard operating procedures (SOP) in order to open, such as disinfection at least three times a day.

Besides mandatory mask-wearing and temperature checks, clothing stores must prepare disposable gloves for customers, while makeup stores and perfume stores are not allowed to conduct product testing and trial services.

Health experts have cautioned that even with the vaccination programme in place, people must still practice the SOPs to curb the possibility of transmissions.

Vaccination is voluntary, although the government aims to immunise at least 80% of the population. – February 25, 2021.