Monday, August 10

Retailers seek rental rebate to ride out Covid-19 effects

0

Retail associations in the country are appealing for shopping malls and shophouse landlords and owners to give rental rebates of between 30 per cent and 50 per cent for the next six months to allow retailers to ride out the effects of the Covid-19 outbreak. – File photo

KUALA LUMPUR: Retail associations in the country are appealing for shopping malls and shophouse landlords and owners to give rental rebates of between 30 per cent and 50 per cent for the next six months to allow retailers to ride out the effects of the Covid-19 outbreak.

The call was jointly made by the Malaysia Retailers Association (MRA), Malaysia Retail Chain Association (MRCA), Bumiputra Retailers Organisation (BRO), Asean Retail-Chains and Franchise Federation (ARFF) and Branding Association of Malaysia (BAM).

The associations said the rebate is similar to what the shopping malls and landlords have done for their tenants in Hong Kong and Singapore.

“Malaysia’s retail businesses have been greatly affected since the COVID-19 outbreak. Many tourists have cancelled their travel plans, the locals have become very cautious and shoppers are staying home, shying away from crowded places like shopping malls,” the associations said in a statement today.

The associations said many members have reported sales dropping by as much as 50 per cent, with some expecting revenue to decline by more than 80 per cent over the next three months.

“In times like this, besides reducing rental, retailers are also appealing to landlords to offer holistic support such as the flexibility to operate shorter store hours to cut down or reduce unproductive operational hours, free parking for shoppers, complimentary booking of atrium areas, and marketing support for both retailer-driven promotions and mall-wide marketing initiatives,” they said.

The associations hoped businesses would bounce back within six to eight months. – Bernama