SHOPPING malls have started to see brisk business in the last few months after the setback brought about by Covid-19, said the Malaysia Shopping Malls Association.

This is apparent from the thousands of visitors thronging the centres, especially during the holidays and, now, for Christmas. Footfall remains steady even with the recent floods in several states.

Malaysia Shopping Malls Association president Teo Chiang Kok said main malls have seen an encouraging number of visitors since they were allowed to resume business and interstate travel was permitted.

“It (footfall) is improving on a weekly basis,” he told The Malaysian Insight.

“The average is 50%-60% (visitors) nationwide, but there have been 80%-90% of shoppers returning to some shopping malls in the Klang Valley.”

Teo said year-end festivities – from Christmas to Chinese New Year – were considered the peak period before the pandemic, after which will come the off-peak season.

“Apart from any untoward pandemic outbreak, we believe this same pre-pandemic pattern will return.

“Malls will need some time to recover after having their shops shut for an extended period and intermittently over more than 19 months.”

On online shopping, he said the pandemic has pushed customers to make purchases online, but added that this cannot be compared to in-store shopping.

“Consumers look for the shopping experience, which appeals to their five senses. As social beings, shoppers want to feel and see, and be seen.”

Retail Group Malaysia managing director Tan Hai Hsin said retailers hope that sales will surge this month due to Christmas and Chinese New Year.

He said the outlook seems positive as 90% of the adult population are fully vaccinated and the interstate travel ban has been removed.

“Retailers who have been depending on tourism spending are seeing more sales brought in by domestic tourism.

“Malaysians have been travelling for family gatherings and meetings, as well as shopping. It is obvious that malls are seeing an increase in visitors.”

Tan said malls have started seeing more traffic since August, especially in the last three months of this year.

“Major shopping malls are packed with diners and shoppers. Traffic in car parks at such centres has returned.

“Footfall has returned to pre-pandemic levels at major shopping malls such as 1 Utama Shopping Centre, IOI City Mall, Mid Valley Megamall, Sunway Pyramid, Suria KLCC and Pavilion Kuala Lumpur.”

Many retailers had to shutter after the first lockdown ended in May last year, he added.

“A second round of closures took place after the bank moratorium ended in October last year; a third round occurred during the second lockdown this year. The recent round started after the third lockdown and ended in August.

“Despite the closures, companies and individuals alike are still investing in new food and beverage outlets including cafes, food stalls, food kiosks, food trucks and restaurants.”

Tan said the pandemic has pushed retailers to digitise their businesses.

“Online shopping has become a major channel of distribution for goods and services in Malaysia.

“Today, many mall retailers have their own online shopping sites, so their shoppers can buy products online and collect them in-store or have them delivered.”

However, he said online shopping will not replace bricks-and-mortar stores when the pandemic ends.

“Current reality has shown us that when lockdowns are lifted, diners gather in cafes and restaurants and shoppers are back in physical stores.”

Malls rapidly recovering

Sunway Malls & Theme Parks chief executive officer H.C. Chan said the group has seen a recovery of 90% in sales and more than 80% in traffic since early this month.

“Strong traction is seen progressively month-on-month since Phase 4 of the National Recovery Plan. Traffic and spending are spurred by the festive season and school holidays.

“There is more family presence in malls now. The figures indicated a 50% to 60% of retail normality in September, before the interstate travel ban was lifted.

“When borders reopened in October, we saw an increase of up to 80% and now, we are past the 80%.”

For Christmas, there has been an increase of 15%-20% across group malls this month, he added.

“As for occupancy rate, 97% of tenants are still strong despite prolonged lockdowns.”

Chan said any closure means that the store is changing its business model to go online.

“Some retailers have decided to exit and consolidate stores, while others’ lease has already ended.”

Chan said group malls have welcomed 200 new stores last year, and look forward to welcoming another 160 by year-end.

He added that to remain competitive, the group has launched its own online platform, Sunway eMall.

IOI Properties Bhd retail head Chris Chong said mall traffic has been very positive since state borders were reopened.

“All our malls have been the hive of activities and festivities for families, especially over weekends, as it is Christmas year-end holidays.

“Stores, with their many offers and specials, are seeing high visitations.

“Physical shopping remains a complete leisure experience for all, with new brands keeping the shopping experience fresh.”

He said IOI City Mall Phase 2 is scheduled to open in the second quarter of 2022.

Pandora assistant boutique manager Shelly Khoo said sales have increased by 10% to 15% in the last few months.

“We have our regulars and are happy to see more customers frequenting the mall,” she said of the store in IOI City Mall, Putrajaya.

“We expect to see more business next year, and the main thing is to follow all the standard operating procedures.”

Diamond Platinum sales executive Choong Zhi Qin said the store has seen an influx of customers.

“With it being the year-end, we are seeing many couples coming in to buy engagement rings,” Choong said of the store in Sunway Pyramid.

“There has been an increase in customers, and we expect more next year.” – December 24, 2021.