Malls, retailers bleeding from CMCO

Malls, retailers bleeding from CMCO
NOV 20 TMI -- MALLS and retailers are still reeling from the Covid-19 pandemic as the country grapples with the third wave of the coronavirus.

Survival is now their key concern as the government continues to initiate the conditional movement-control order (CMCO) to stem the spread of the virus.

Seven states are in partial lockdown until December 6. 

Due to the prolonged nature to the CMCO, these businesses are expecting more closures in the next six months.

However, they continue to reassure shoppers that they are constantly following all the standard operating procedure (SOP) to make the malls safe for all visitors.

Malaysia Shopping Malls Association president Teo Chiang Kok said they were on the positive up till August with shoppers regaining confidence resulting in foot traffic reaching 70% -90%.

“It is most unfortunate that the third wave of infections started to hit our country after that.

Footfall to malls started to decrease and fell drastically to 10%-25% of pre-MCO levels when the second CMCO was imposed in October ,” he said.

It is estimated that the layoffs of direct employment in malls and retailer staff, excluding head office and supply chains, may amount to 68,000 employees.

Teo said with the prolonged economic downturn and continuing uncertainty because of Covid-19 on household incomes, purchasing power and livelihoods have resulted in low sales turnover to now only 20%-30% nationwide and 10%-15% in CMCO areas.