KUALA LUMPUR, July 16 — A survey by the Malaysia Retail Chain Association (MRCA) on the impact of current restrictions has shown that 91 per cent of retail businesses reported a decline in sales for the period of January to June 2021.
Its president Shirley Tay said the survey was conducted in June among its 450 association members to compare the sales figures for the first six months in 2020 and 2021.
“About 45 per cent of the respondents said they experienced more than 30 per cent reduction in sales while 55 per cent said they had downsized their retail operations while 21 per cent had closed up to six outlets and branches.
“Around 40 per cent of our members reported that they had terminated more than 10 employees and as we did a tabulation, it is safe to say that probably more than 50,000 retail employees had been terminated so far,” she said in a virtual press conference today.
Tay noted that 97 per cent of the retail respondents reported that they only have 4.5 months’ worth of cash flow to sustain their operations as a result of the declining sales.
“Many of our members are badly hit by this pandemic, some cannot sustain beyond three months with their current cash flow positions,” she added.
Meanwhile, MRCA together with Direct Selling Association of Malaysia (DSAM) have joined hands to raise emergency funds to purchase essential food supplies for people affected by the pandemic.
The collaboration aims to raise RM500,000 to help provide food boxes to more than 10,000 families within the Klang Valley and its vicinities.
“To date, the food boxes have reached 2,000 families at nine distribution locations across Kuala Lumpur and Selangor with more locations currently being finalised for ongoing distribution.
“We believe that this collaboration with DSAM will at least help the less fortunate as every contribution would lessen the suffering of the people,” said Tay. — Bernama