Monday, July 2, 2012

Today's Pick (28/06/12/116/810) Retailers group raises forecast


Retailers group raises forecast


REVENUE GROWTH: 5pc-6pc expected on higher contributions from abroad
THE Malaysian Retailer-Chains Association (MRCA) has revised upwards its 2012 revenue growth projection of its members to between five per cent and six per cent as it foresees more contributions coming from abroad.

MRCA, which has 206 members with over 10,000 retail outlets, late last year projected average growth of four to five per cent for its members.
The revised projection is more in line with the six per cent growth forecast by the Malaysia Retail Association (MRA). However, MRCA numbers are different from those of MRA as the former o takes into account sales growth registered overseas by its locally-incorporated members.

Newly-appointed president Datuk Nelson Kwok said that the slightly better projection came despite some retailers experiencing a month-to-month decline of 20 per cent in the April-June period.

"The food and beverage industry (nevertheless) continues to hold with some players registering up to 20 per cent growth," Kwok told Business Times in an interview.

"New concepts like Chatime and Overtime have expanded nationwide contributing to significant growth," he said.

"Consumer spending over the next six months is uncertain. They (consumers) are adopting a "wait- and-see" attitude. They prefer to conserve their cash and buy very selectively. Consumers are constantly looking for promotions."

He cited Groupon as a very popular method of getting value-for- money deals.
Meanwhile, as the economic outlook remains uncertain, Kwok said retailers are gearing up for a possible slowdown. They are looking at cost-effective measures and maximising staff performance. Venturing abroad is a solution opted for by some retailers.

Kwok, the founder of Nelson's Corn in Cup, said that margins for his business are better abroad.

Other MRCA retailers with operations abroad include Marry Brown, Bonia and King Confectionery.

Source : New Straits Times
Date : 26 June 2012
Today's Pick (28/06/12/116/810)

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