• Distributive trade sales grew 5.5% yoy in February

• Sales value dropped to RM109.0bn in February

• Slower growth registered by retail and wholesale sales

• Covid-19 chaos takes toll on global retail sales

• Covid-19 concerns bite harder at retailers

Distributive trade growth grew by 5.5% yoy to RM109.0bn in February 2020, slightly higher than 5.4% yoy growth in the preceding month. Both wholesale and retail trade recorded a slower growth at 5.1% yoy and 6.4% yoy (Jan’20: 5.2% and 6.7%) respectively. On the other hand, significant increase was observed in motor vehicle sales which jumped to 3.7% yoy (Jan: 1.0%).

Retail sales registered growth of RM2.7bn or 6.4% yoy to RM45.3bn, the least since September 2015. The expansion was fuelled by retail sale in non-specialised stores (Feb: 7.5%; Jan: 8.1%) and retail sale of other goods in specialised stores (Feb: 7.6%; Jan 8.3%). Wholesale trade generated sales value of RM52.7bn in February, increased RM2.4bn or 5.1% yoy.

On monthly basis, sales value of distributive trade decreased RM5.6bn or -4.9%, faster when compared to -0.9% declined in January. Monthly sales of retail trade declined 3.3% whilst sales value of motor vehicles was lower by -9.3%. Sales of wholesale trade also declined 5.2% mom.

Meanwhile, volume index of wholesale & retail trade posted a growth of 5.4% yoy to reach 127.9 points. The key contributor for this growth was retail trade with 6.4%. This was followed by wholesale trade (4.9%) and motor vehicles (3.6%). As for seasonally adjusted volume index, it declined 0.6% mom.

Source: BIMB Securities Research - 10 Apr 2020