• Distributive trade sales grew 5.3% yoy in January

• Sales value dropped to RM114.8bn in January

• Slower growth registered by retail and wholesale sales

• Growth in global retail sales recorded a dismal start for the year

• Thrifty spending to prevail amid coronavirus

Distributive trade growth grew by 5.4% yoy to RM114.8bn in January 2020, moderated from 6.0% yoy in the preceding month. Significant slowdown was observed in motor vehicle sales which moderated sharply to a six-month low of 1.0% yoy (Dec’19: 4.5%). Similarly, both wholesale and retail trade recorded slightly slower growth at 5.2% yoy and 6.7% yoy (Dec’19: 5.4% and 7.0%) respectively.

Retail sales registered growth of 6.7% yoy to RM46.8bn. The expansion was fuelled by retail trade not in stores, stalls or markets (9.5%), retail sale via stalls & markets (9.2%), retail sale of other goods in specialised stores (8.3%), retail sale in nonspecialised stores (8.1%) and retail sale of food, beverages & tobacco in specialised stores (8.0%).

On monthly basis, sales value of distributive trade decreased RM1.0bn or -0.9%, slower when compared to 3.7% growth in December2019. Monthly sales of retail trade declined 2.0% whilst sales value of motor vehicles slowed to -0.9%. Sales of wholesale trade increased 0.1% mom.

Meanwhile, volume index of wholesale & retail trade posted a growth of 5.5% to reach 134.4 points as compared to the same month of the previous year. The key contributor for this growth was retail trade with 6.7%. This was followed by wholesale trade (5.3%) and motor vehicles (0.9%). As for seasonally adjusted volume index, it declined 0.4% mom.

Source: BIMB Securities Research - 16 Mar 2020