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Retail in Malaysia

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    Report

  • 118 Pages
  • February 2024
  • Region: Malaysia
  • Euromonitor International
  • ID: 5767201
Following reopened borders and lifted restrictions in 2022, Malaysia's retail sector witnessed a surge in consumer revenge spending throughout the year. However, starting from the second quarter of 2023, the trend showed signs of decline as consumer demand weakened. Malaysians became more inclined to prioritise purchasing food essentials over discretionary products, influenced by rising interest rates and heightened inflationary pressures.

The Retail in Malaysia report offers insight into key trends and developments driving the industry. The report examines all retail channels to provide sector insight. Channels include hypermarkets, supermarkets, discounters, convenience stores, mixed retailers, health and beauty retailers, clothing and footwear retailers, furniture and furnishing stores, DIY and hardware stores, durable goods retailers, leisure and personal goods retailers. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of non-store retailing: vending; homeshopping; internet retailing; direct selling, as available.

Product coverage: Retail E-Commerce, Retail Offline.

Data coverage: Market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?

  • Get a detailed picture of the Retail market;
  • Pinpoint growth sectors and identify factors driving change;
  • Understand the competitive environment, the market’s major players and leading brands;
  • Use five-year forecasts to assess how the market is predicted to develop.

Table of Contents

RETAIL IN MALAYSIA
EXECUTIVE SUMMARY
  • Retail in 2023: The big picture
  • Growth slows as revenge spending subsides
  • New entrants intensify the competition
  • What next for retail?
OPERATING ENVIRONMENT
  • Informal retail
  • Opening hours for physical retail
  • Summary 1 Standard Opening Hours by Channel Type 2023
  • Seasonality
  • Chinese New Year
  • Hari Raya festivals
  • Christmas and year-end festive season
MARKET DATA
  • Table 1 Sales in Retail by Retail Offline vs Retail E-Commerce: Value 2018-2023
  • Table 2 Sales in Retail by Retail Offline vs Retail E-Commerce: % Value Growth 2018-2023
  • Table 3 Sales in Retail Offline by Channel: Value 2018-2023
  • Table 4 Sales in Retail Offline by Channel: % Value Growth 2018-2023
  • Table 5 Retail Offline Outlets by Channel: Units 2018-2023
  • Table 6 Retail Offline Outlets by Channel: % Unit Growth 2018-2023
  • Table 7 Sales in Retail E-Commerce by Product: Value 2018-2023
  • Table 8 Sales in Retail E-Commerce by Product: % Value Growth 2018-2023
  • Table 9 Grocery Retailers: Value Sales, Outlets and Selling Space 2018-2023
  • Table 10 Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 11 Sales in Grocery Retailers by Channel: Value 2018-2023
  • Table 12 Sales in Grocery Retailers by Channel: % Value Growth 2018-2023
  • Table 13 Grocery Retailers Outlets by Channel: Units 2018-2023
  • Table 14 Grocery Retailers Outlets by Channel: % Unit Growth 2018-2023
  • Table 15 Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2018-2023
  • Table 16 Non-Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 17 Sales in Non-Grocery Retailers by Channel: Value 2018-2023
  • Table 18 Sales in Non-Grocery Retailers by Channel: % Value Growth 2018-2023
  • Table 19 Non-Grocery Retailers Outlets by Channel: Units 2018-2023
  • Table 20 Non-Grocery Retailers Outlets by Channel: % Unit Growth 2018-2023
  • Table 21 Retail GBO Company Shares: % Value 2019-2023
  • Table 22 Retail GBN Brand Shares: % Value 2020-2023
  • Table 23 Retail Offline GBO Company Shares: % Value 2019-2023
  • Table 24 Retail Offline GBN Brand Shares: % Value 2020-2023
  • Table 25 Retail Offline LBN Brand Shares: Outlets 2020-2023
  • Table 26 Retail E-Commerce GBO Company Shares: % Value 2019-2023
  • Table 27 Retail E-Commerce GBN Brand Shares: % Value 2020-2023
  • Table 28 Grocery Retailers GBO Company Shares: % Value 2019-2023
  • Table 29 Grocery Retailers GBN Brand Shares: % Value 2020-2023
  • Table 30 Grocery Retailers LBN Brand Shares: Outlets 2020-2023
  • Table 31 Non-Grocery Retailers GBO Company Shares: % Value 2019-2023
  • Table 32 Non-Grocery Retailers GBN Brand Shares: % Value 2020-2023
  • Table 33 Non-Grocery Retailers LBN Brand Shares: Outlets 2020-2023
  • Table 34 Forecast Sales in Retail by Retail Offline vs Retail E-Commerce: Value 2023-2028
  • Table 35 Forecast Sales in Retail by Retail Offline vs Retail E-Commerce: % Value Growth 2023-2028
  • Table 36 Forecast Sales in Retail Offline by Channel: Value 2023-2028
  • Table 37 Forecast Sales in Retail Offline by Channel: % Value Growth 2023-2028
  • Table 38 Forecast Retail Offline Outlets by Channel: Units 2023-2028
  • Table 39 Forecast Retail Offline Outlets by Channel: % Unit Growth 2023-2028
  • Table 40 Forecast Sales in Retail E-Commerce by Product: Value 2023-2028
  • Table 41 Forecast Sales in Retail E-Commerce by Product: % Value Growth 2023-2028
  • Table 42 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 43 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
  • Table 44 Forecast Sales in Grocery Retailers by Channel: Value 2023-2028
  • Table 45 Forecast Sales in Grocery Retailers by Channel: % Value Growth 2023-2028
  • Table 46 Forecast Grocery Retailers Outlets by Channel: Units 2023-2028
  • Table 47 Forecast Grocery Retailers Outlets by Channel: % Unit Growth 2023-2028
  • Table 48 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 49 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
  • Table 50 Forecast Sales in Non-Grocery Retailers by Channel: Value 2023-2028
  • Table 51 Forecast Sales in Non-Grocery Retailers by Channel: % Value Growth 2023-2028
  • Table 52 Forecast Non-Grocery Retailers Outlets by Channel: Units 2023-2028
  • Table 53 Forecast Non-Grocery Retailers Outlets by Channel: % Unit Growth 2023-2028
DISCLAIMER
SOURCES
  • Summary 2 Research Sources
CONVENIENCE RETAILERS IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Aggressive expansion continues in 2023
  • Labour shortages impact opening hours as players emphasise foodservice offerings
  • Family Mart offers first halal convenience store café in Malaysia, while focus on RTE and fresh-food offerings grows
PROSPECTS AND OPPORTUNITIES
  • Tourism to boost sales amid persistent channel expansion
  • Foodservice offerings and digital development take centre stage
  • Potential shift towards imported and smaller packs as next growth frontier, while revised public health bill passes upper house
CHANNEL DATA
  • Table 54 Convenience Retailers: Value Sales, Outlets and Selling Space 2018-2023
  • Table 55 Convenience Retailers: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 56 Sales in Convenience Retailers by Channel: Value 2018-2023
  • Table 57 Sales in Convenience Retailers by Channel: % Value Growth 2018-2023
  • Table 58 Convenience Retailers GBO Company Shares: % Value 2019-2023
  • Table 59 Convenience Retailers GBN Brand Shares: % Value 2020-2023
  • Table 60 Convenience Retailers LBN Brand Shares: Outlets 2020-2023
  • Table 61 Convenience Retailers Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 62 Convenience Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
  • Table 63 Forecast Sales in Convenience Retailers by Channel: Value 2023-2028
  • Table 64 Forecast Sales in Convenience Retailers by Channel: % Value Growth 2023-2028
DISCOUNTERS IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Discounter stores see slowed growth in face of attractive alternatives
  • Growth hindered by lack of government support
  • Partnership deal called off, while KPF Trading maintains leadership with D’mart
PROSPECTS AND OPPORTUNITIES
  • Government loses interest in introducing more super-saver discount formats
  • Discounters need to bolster value proposition to stay competitive
  • Expansion opportunities may lie in rural and suburban areas
CHANNEL DATA
  • Table 65 Discounters: Value Sales, Outlets and Selling Space 2018-2023
  • Table 66 Discounters: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 67 Discounters GBO Company Shares: % Value 2019-2023
  • Table 68 Discounters GBN Brand Shares: % Value 2020-2023
  • Table 69 Discounters LBN Brand Shares: Outlets 2020-2023
  • Table 70 Discounters Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 71 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
HYPERMARKETS IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Channel benefits from post-pandemic lifestyles, while DFI Retail sells grocery business to domestic player
  • Econsave continues to lead in terms of outlet numbers
  • Hypermarkets to join Rahmah Basket programme as living costs rise
PROSPECTS AND OPPORTUNITIES
  • Giant malls will replace giant hypermarkets
  • Convenience stores presents continuous competitive threat to hypermarkets
  • Sales will continue to be supported by big families and loyal consumers, with players investing more in sustainability
CHANNEL DATA
  • Table 72 Hypermarkets: Value Sales, Outlets and Selling Space 2018-2023
  • Table 73 Hypermarkets: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 74 Hypermarkets GBO Company Shares: % Value 2019-2023
  • Table 75 Hypermarkets GBN Brand Shares: % Value 2020-2023
  • Table 76 Hypermarkets LBN Brand Shares: Outlets 2020-2023
  • Table 77 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 78 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
SUPERMARKETS IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Premium supermarkets drive overall channel growth in 2023
  • Supermarkets suffers some supply chain disruptions, while imported Australian products expand across shelves
  • Membership programmes foster brand loyalty
PROSPECTS AND OPPORTUNITIES
  • Jaya Grocer plans new flagship store for 2024 as channel is set see continued recovery and expansion
  • TFP focuses on mini-store format, and stores in the south offer growth potential for supermarkets
  • Health consciousness and sustainability concerns to gain traction
CHANNEL DATA
  • Table 79 Supermarkets: Value Sales, Outlets and Selling Space 2018-2023
  • Table 80 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 81 Supermarkets GBO Company Shares: % Value 2019-2023
  • Table 82 Supermarkets GBN Brand Shares: % Value 2020-2023
  • Table 83 Supermarkets LBN Brand Shares: Outlets 2020-2023
  • Table 84 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 85 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
SMALL LOCAL GROCERS IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Small local grocers faces threat from modern retail channels
  • E-wallet payment method gains further ground
  • Focus on healthy options heightens appeal to consumers
PROSPECTS AND OPPORTUNITIES
  • Intensifying competition will lead to slow growth for small local grocers
  • Rising operational expenses to put additional strain on category players facing the need to modernise
  • Number of outlets sink to shrink further over forecast period
CHANNEL DATA
  • Table 86 Small Local Grocers: Value Sales, Outlets and Selling Space 2018-2023
  • Table 87 Small Local Grocers: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 88 Small Local Grocers GBO Company Shares: % Value 2019-2023
  • Table 89 Small Local Grocers GBN Brand Shares: % Value 2020-2023
  • Table 90 Small Local Grocers LBN Brand Shares: Outlets 2020-2023
  • Table 91 Small Local Grocers Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 92 Small Local Grocers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
APPAREL AND FOOTWEAR SPECIALISTS IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Decline in revenge spending means moderated sales growth
  • E-commerce expands as costs of doing business on the rise
  • H&M launches on Shopee in Malaysia
PROSPECTS AND OPPORTUNITIES
  • Rising demand for more diversified and innovative clothing options as retailers invest in membership programmes
  • HVG tax could potentially hamper sales of high-end brands, while e-commerce expansion encourages omnichannel approach
  • Mall expansion set to explode over forecast period
CHANNEL DATA
  • Table 93 Apparel and Footwear Specialists: Value Sales, Outlets and Selling Space 2018-2023
  • Table 94 Apparel and Footwear Specialists: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 95 Apparel and Footwear Specialists GBO Company Shares: % Value 2019-2023
  • Table 96 Apparel and Footwear Specialists GBN Brand Shares: % Value 2020-2023
  • Table 97 Apparel and Footwear Specialists LBN Brand Shares: Outlets 2020-2023
  • Table 98 Apparel and Footwear Specialists Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 99 Apparel and Footwear Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
APPLIANCES AND ELECTRONICS SPECIALISTS IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Weakening consumer sentiment undermines overall growth
  • Inflation pushes up prices while heatwave boosts sales in air conditioners
  • Rahmah campaigns extend to appliances, and leading player SenHeng plans for future expansion
PROSPECTS AND OPPORTUNITIES
  • SAVE programme will continue to encourage energy efficient purchases while BNPL services rise
  • Smart and sustainable home living as an avenue for growth
  • LG sees potential in Malaysia and is set to open more local stores
CHANNEL DATA
  • Table 100 Appliances and Electronics Specialists: Value Sales, Outlets and Selling Space 2018-2023
  • Table 101 Appliances and Electronics Specialists: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 102 Appliances and Electronics Specialists GBO Company Shares: % Value 2019-2023
  • Table 103 Appliances and Electronics Specialists GBN Brand Shares: % Value 2020-2023
  • Table 104 Appliances and Electronics Specialists LBN Brand Shares: Outlets 2020-2023
  • Table 105 Appliances and Electronics Specialists Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 106 Appliances and Electronics Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
HEALTH AND BEAUTY SPECIALISTS IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Guardian and Watsons maintain leadership of health and beauty specialists in 2023
  • Pharmacies sees ongoing consolidation
  • Sales growth in optical goods stores moderates as revenge spending subsides
PROSPECTS AND OPPORTUNITIES
  • Larger pharmacy chains benefit from economies of scale
  • Imported products set to see rising consumer interest
  • Demand set to rise for halal and Korean cosmetics
CHANNEL DATA
  • Table 107 Health and Beauty Specialists: Value Sales, Outlets and Selling Space 2018-2023
  • Table 108 Health and Beauty Specialists: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 109 Sales in Health and Beauty Specialists by Channel: Value 2018-2023
  • Table 110 Sales in Health and Beauty Specialists by Channel: % Value Growth 2018-2023
  • Table 111 Health and Beauty Specialists GBO Company Shares: % Value 2019-2023
  • Table 112 Health and Beauty Specialists GBN Brand Shares: % Value 2020-2023
  • Table 113 Health and Beauty Specialists LBN Brand Shares: Outlets 2020-2023
  • Table 114 Health and Beauty Specialists Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 115 Health and Beauty Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
  • Table 116 Forecast Sales in Health and Beauty Specialists by Channel: Value 2023-2028
  • Table 117 Forecast Sales in Health and Beauty Specialists by Channel: % Value Growth 2023-2028
HOME PRODUCTS SPECIALISTS IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Mr DIY drives expansion in the home products space
  • Megastore format gains ground and Mr DIY launches first Emtop store in Malaysia
  • IKEA remains leader of homewares and home furnishings
PROSPECTS AND OPPORTUNITIES
  • Mr DIY to continue with aggressive expansion with a focus on East Malaysia region
  • IKEA will focus on northern and southern areas, while all players will invest more in e-commerce
  • Value-for-money retailers to benefit from downtrading trend as property market set to see some improvement
CHANNEL DATA
  • Table 118 Home Products Specialists: Value Sales, Outlets and Selling Space 2018-2023
  • Table 119 Home Products Specialists: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 120 Sales in Home Products Specialists by Channel: Value 2018-2023
  • Table 121 Sales in Home Products Specialists by Channel: % Value Growth 2018-2023
  • Table 122 Home Products Specialists GBO Company Shares: % Value 2019-2023
  • Table 123 Home Products Specialists GBN Brand Shares: % Value 2020-2023
  • Table 124 Home Products Specialists LBN Brand Shares: Outlets 2020-2023
  • Table 125 Home Products Specialists Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 126 Home Products Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
  • Table 127 Forecast Sales in Home Products Specialists by Channel: Value 2023-2028
  • Table 128 Forecast Sales in Home Products Specialists by Channel: % Value Growth 2023-2028
GENERAL MERCHANDISE STORES IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Department stores lose appeal to smaller alternatives
  • Japan’s Sogo & Seibu opens upscale department store in Malaysia
  • Eco Shop continues to lead expansion in variety stores
PROSPECTS AND OPPORTUNITIES
  • Reinvention necessary for department stores to stay afloat
  • Players to harness opportunities emerging from omnichannel integration
CHANNEL DATA
  • Table 129 General Merchandise Stores: Value Sales, Outlets and Selling Space 2018-2023
  • Table 130 General Merchandise Stores: Value Sales, Outlets and Selling Space: % Growth 2018-2023
  • Table 131 Sales in General Merchandise Stores by Channel: Value 2018-2023
  • Table 132 Sales in General Merchandise Stores by Channel: % Value Growth 2018-2023
  • Table 133 General Merchandise Stores GBO Company Shares: % Value 2019-2023
  • Table 134 General Merchandise Stores GBN Brand Shares: % Value 2020-2023
  • Table 135 General Merchandise Stores LBN Brand Shares: Outlets 2020-2023
  • Table 136 General Merchandise Stores Forecasts: Value Sales, Outlets and Selling Space 2023-2028
  • Table 137 General Merchandise Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2023-2028
  • Table 138 Forecast Sales in General Merchandise Stores by Channel: Value 2023-2028
  • Table 139 Forecast Sales in General Merchandise Stores by Channel: % Value Growth 2023-2028
DIRECT SELLING IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Direct selling feels the pinch as consumer sentiment softens
  • KPDN endorses partnership between Lazada and direct sellers, while health and beauty products remain popular
  • Philippine player enters Malaysia, with Amway retaining top spot
PROSPECTS AND OPPORTUNITIES
  • Accelerated digitalisation to improve consumer engagement and experience
  • Health and wellness products continue as cornerstone offerings for direct sellers
  • Attractive bonuses and incentives will be key to retain sales agents, while loyalty programmes aim to keep consumers coming back
CHANNEL DATA
  • Table 140 Direct Selling by Product: Value 2018-2023
  • Table 141 Direct Selling by Product: % Value Growth 2018-2023
  • Table 142 Direct Selling GBO Company Shares: % Value 2019-2023
  • Table 143 Direct Selling GBN Brand Shares: % Value 2020-2023
  • Table 144 Direct Selling Forecasts by Product: Value 2023-2028
  • Table 145 Direct Selling Forecasts by Product: % Value Growth 2023-2028
VENDING IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Vending machine use on the rise in Malaysia, with Coca-Cola leading and CoffeeBot climbing
  • Grab launches AI-driven reverse vending machines to promote plastic recycling, and contactless payments options became more prevalent
  • Government introduces IPR vending machines as product offer diversifies
PROSPECTS AND OPPORTUNITIES
  • Government initiatives likely to boost sales
  • Low-maintenance advantage will support further expansion of vending machines
  • KLEAN set to scale through partnership expansion as players invest in innovation
CHANNEL DATA
  • Table 146 Vending by Product: Value 2018-2023
  • Table 147 Vending by Product: % Value Growth 2018-2023
  • Table 148 Vending GBO Company Shares: % Value 2019-2023
  • Table 149 Vending GBN Brand Shares: % Value 2020-2023
  • Table 150 Vending Forecasts by Product: Value 2023-2028
  • Table 151 Vending Forecasts by Product: % Value Growth 2023-2028
RETAIL E-COMMERCE IN MALAYSIAKEY DATA FINDINGS
2023 DEVELOPMENTS
  • Shoppertainment trend propels TikTok Shop, though e-commerce sales fall in 2023
  • Shopee and Lazada remain dominant players, while home shopping player Astro Go Shop ends operations after eight years
  • Singapore and Malaysia launch cross-border QR-code merchant payments
PROSPECTS AND OPPORTUNITIES
  • E-commerce sellers fight to keep TikTok Shop online in Malaysia
  • Low-value goods tax may hamper e-commerce sales growth
  • AI offers new avenues for growth
CHANNEL DATA
  • Table 152 Retail E-Commerce by Channel: Value 2017-2022
  • Table 153 Retail E-Commerce by Channel: % Value Growth 2017-2022
  • Table 154 Retail E-Commerce by Product: Value 2017-2022
  • Table 155 Retail E-Commerce by Product: % Value Growth 2017-2022
  • Table 156 Retail E-Commerce GBO Company Shares: % Value 2018-2022
  • Table 157 Retail E-Commerce GBN Brand Shares: % Value 2019-2022
  • Table 158 Forecast Retail E-Commerce by Channel: Value 2022-2027
  • Table 159 Forecast Retail E-Commerce by Channel: % Value Growth 2022-2027
  • Table 160 Forecast Retail E-Commerce by Product: Value 2022-2027
  • Table 161 Forecast Retail E-Commerce by Product: % Value Growth 2022-2027