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With the increasing penetration of internet usage and improved logistics solution, Malaysia consumers are increasingly trusting on internet retailing. Internet retailing is slowly changing the way of doing shopping, due to the following advantages:

o    No standing in queues

o    Easier to compare prices

o    Numerous choices from one place

o    Access to stores located remotely

o    Availability of coupons and deals

o    Available 24hours

o    Availability of data to identify the hot product or services

From 2010 to 2016, store-based retailing has an CAGR of 3.6% while non-store-based retailing has an CAGR of 5.2%. Internet retailing is gaining popularity among consumers, particularly younger, IT savvy and more sophisticated consumers. In addition to the rapid growth of pure internet retailers, some store-based retailers also ventured into internet retailing such as Watson, Tesco, Nestle.

Malls are usually categorized according to its function and target customers. Here are the major 4 types of malls in Malaysia.

Type A Mall:

Target on local and non-local community. Serve as a location for activities and events. Retail of luxury brands and brands in line the positioning of the mall.

Type B Mall:

Target on local community and serve as a place for relax and spending family day during weekends. Retail of mass market brands and it usually comes with post office or cinemas.

Type C Mall:

Target on local community and provides conveniences or goods needed urgently. Mall consist of mostly services outlet which include restaurants, gym, tuition centre, childcare centre, agency firm or beauty centre.

Type D Mall:

Target on mostly foreign labour and small parts of local community. Although commanding a low rental rate, it is mostly vacant and poorly maintained.

We do not know how far this trend will hurt malls operator but here are something you can observe

·         Are the shopping malls changing their retail format fast enough?

·         Are there more service provider (cinema & restaurants) than products retailer (apparel store)

·         How’s the foot traffic on weekends and weekday peak hours?

·         How is their overall occupancy rate and have vacancies been rising?

·         What action is the management taking to help its tenants boost sales?

·         How is the rental reversion rate

Some of Malaysia listed reits that has mall in their portfolio

·         Pavilion Reits

·         IGB Reits

·         Capitamall Malaysia Trust

·         Axis Reits

·         Amanahraya Reits

·         Amfirst Reits

·         Sunway Reits

·         YTL Hospitality Reits

·         Hektar Reits

·         MRCB Quill Reits

·         KLCC Stapled Reits