19 Jul - 2 min read
A survey by the Malaysia Retail Chain Association (MRCA) has revealed that 91% of retail businesses suffered a drop in sales between January to June 2021. The survey, which was conducted among 450 association members in June, sought to evaluate the impact of the ongoing restrictions by comparing the sales figures for the first half of 2020 and 2021.
According to the president of the MRCA, Shirley Tay, about 45% of the respondents said they experienced more than 30% reduction in sales, whereas 55% said they had downsized their retail operation. Meanwhile, 21% had to close down up to six outlets and branches.
“Around 40% 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,” Tay further commented in a virtual press conference.
Additionally, the survey also indicated that 97% of the retail respondents only had four and a half 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,” said Tay.
(Source: Malay Mail)
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