Yen Global: Malaysia's retail sector probably grew 5%
PETALING JAYA: The local retail industry in the fashion and lifestyle sector will gain a notable boost from the nationwide year-end sale with a modest growth of about 5% in 2012, according to Yen Global Bhd.
The vertically integrated apparel manufacturer, wholesaler and retailer added that domestic demand was expected to remain strong as shopping was still considered one of the most affordable type of family outings in Malaysia.
It said industry players believed that the industry would grow moderately for the period up to Chinese New Year.
“In order to spearhead the group's recovery and growth in the near future, the group has taken this opportunity to expand the number of its retail stores in very choice locations whenever available,” executive chairman Goh Kok Beng said in the company's latest annual report.
With proactive steps taken to open up new sales channels and new marketing strategies, Yen Global also expects a marked improvement in its financial performance.
It has increased its retail stores from three to nine units.
Goh added that the focus this year will be to put the group in a stronger position in the competitive retail market through a restructuring exercise involving new distribution channels, merchandise revamp and brand renewal.
“This will increase our sales volume and provide the impetus for the group to achieve a steady growth rate in the years to come,” he said, adding that new and innovative marketing strategies and incentives are also being introduced throughout the year to motivate the frontline staff to double their efforts and push sales higher.
Rental rates at shopping malls which are expected to maintain for the time being may also soften slightly if market conditions weakened further.
Yen Global also pointed out that industry analysts are optimistically cautious about retail industry growth in 2012, with an expansion of about 6% for the year.
“Retail companies which want to chart a growth path will need to expand cautiously and with the right timing and location in order to rise above the competition,” Goh said.
The group said that although its financial performance for the year ended July 31, 2012 was less than satisfactory, there was significant improvement over the preceding year.
Yen Global had achieved a RM11.14mil net profit in the 2012 financial year, a 43.7% dip from RM19.77mil. Its revenue was RM39.4mil, down 9% from RM43.3mil in 2011.
“Our apparel business in Malaysia remains stable with revenue of RM35.2mil as compared to the previous year's revenue of RM38mil. Our consolidation exercise for the past year has borne fruit and this has improved our margins and overall performance,” Goh noted.
He added that loss of the core business has narrowed from RM17.2mil in 2011 to RM6.6mil in the reported year.
Source : The Times
Date : 2 January 2012
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