Monday, June 17, 2013

Afternoon Highlight (10/06/13/98/796) Better than forecast retail sales in the first quarter

Better than forecast retail sales in the first quarter


PETALING JAYA: Malaysia’s retail industry recorded sales growth of 7.5% in the first quarter of this year, which was better than retailers’ initial forecast of 5.9%, according to Retail Group Malaysia.

“This latest quarterly result is 27% higher than the earlier estimate compiled by Malaysia Retailers Association (MRA) in February as well as 8.7% better than the estimate given by Retail Group Malaysia (at 6.9%).

“This latest quarterly growth rate is also higher than the growth rates of the first quarter (6.9%) and last quarter (4.7%) in 2012,” said Retail Group Malaysia in a statement.

It said the various cash and voucher handouts given by the Government since the middle of January are among the main contributors of higher retail sales for this quarter.

“These monetary incentives had benefited more than 12 million Malaysians.”

Separately, Retail Group Malaysia said members of the retailers’ association expect a 7.7% increase in their businesses during the second quarter.

“Once again, small growth forecasts from the grocery as well as furniture and furnishing sub-sectors led to the lower overall estimate. Department store cum supermarket operators are expecting to maintain their growth rate at 9.8% for the second quarter of this year.

“Department store operators remain optimistic and expect their businesses to grow by 11.5% for the second three-month period of this year.”

On the outlook for the third quarter, it said Ramadan and Hari Raya during the period would boost spending.

“The retail industry is anticipated to enjoy a strong performance at 6% (in the third quarter). The last quarter of 2013 is expected to have a sustainable growth at 5.8% due to the school holidays, year-end sales and festivals.

“For the whole year of 2013, Retail Group Malaysia has revised slightly upwards its growth forecast of the retail industry from 6% to 6.4%.”

Source : New Straits Times
Date : 6 June 2013
Afternoon Highlight (10/06/13/98/796)

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