• Distributive trade sales fell 5.7% yoy in March

• Sales value dropped to RM103.2bn in March

• Declining performance in all three components

• Global retail sales see record fall in March amid pandemic woes

• Retail trade performance to shrink further amid lockdown

Malaysia’s distributive trade fell -5.7% yoy to RM103.2bn in March, the first contraction since the start of the data in 2013. The fall was contributed by declining performances in all components. Wholesale trade generated sales value of RM51.8bn in March, down -2.7% yoy whilst sales value of motor vehicles decreased to -15.3% yoy.

Retail sales tumbled 6.6% yoy in March, the first decline since the series began in January 2013, following a downwardly revised 6.3% rise in the previous month. Sales fell for automotive fuels in specialised stores (Mar: -14.4%; Feb: 3.1%); household equipment (Mar: -13.1; Feb: 4.8%); cultural & recreation goods (Mar: -12.0%; Feb: 4.7%); information & communication equipment (Mar: -5.3%; Feb: 4.0%); nonspecialised stores (Mar: -0.3%; Feb: 7.4%). In addition, sales growth eased for both food, beverages & tobacco (Mar: 2.6%; Feb: 7.5%) and sales via stalls & markets (Mar: 1.7%; Feb: 9.4%).

On monthly basis, sales value of distributive trade decreased RM5.8bn or -5.3% when compared to -5.1% declined in February. Monthly sales of retail trade declined 9.9% whilst sales value of motor vehicles was lower by -4.4%. Sales of wholesale trade also declined 1.6% mom.

Meanwhile, volume index of wholesale & retail trade registered 120.1 points, contracted to -6.1% yoy. The negative growth was recorded in all subsectors, namely wholesale trade -2.5%, retail trade -7.5% and motor vehicles -14.4%. As for seasonally adjusted volume index, it recorded -11.6% mom.

Source: BIMB Securities Research - 12 May 2020