Apparel and Footwear Specialist Retailers in Malaysia

2020 IMPACT

COVID-19 has strong negative impact on this channel as stores are shuttered and consumers rein in their spending

COVID-19 had a strong negative impact on sales of apparel and footwear specialists in 2020. Due to economic concerns stimulated by the pandemic, consumers became much more frugal in their purchases of non-essential goods.

Government restrictions reduce footfall and limit opening hours

The government’s response to halting the spread of the virus included the imposition of strict social distancing measures. Depending on the size of retailing space in outlets, retailers were only allowed a certain number of customers in their stores at any one time after lockdown eased and restrictions began to lift.

Padini Holdings maintains lead after employing store rationalisation strategy

Padini Holdings remained the leading player in apparel and footwear specialist retailers in Malaysia in 2020 despite experiencing a drop in its value share. The company is present with its established Padini retail brand and a wide range of products, which are very much in keeping with the tastes of local consumers.

RECOVERY AND OPPORTUNITIES

Despite casualties and permanent closures, new players emerge while luxury apparel and footwear also performs well

While there were a few permanent stores closures in 2020 and some brands have opted to move completely online, new retail outlets are expected to be launched in the near future as social distancing measures loosen. Luxury apparel and footwear, which also experienced a steep decline is set to benefit from revenge shopping in 2021, representing a wider trend in luxury goods in Malaysia.

Strong rebound in 2021 with the pandemic leading to longer-term changes in player strategies

In terms of bouncing back, this category is likely to recover well in 2021 and then stabilise as stores will be able to operate freely and shoppers will return to shopping centres. Several of Malaysia’s leading online fashion retailers have recently expanded from e-commerce to launch bricks-and-mortar shops in a bid to establish a strong position as multi-channel retailers.

Shift in thinking for industry players though bricks and mortar stores remain relevant once restrictions ease

The high growth that was already being seen in e-commerce in 2019 was given a tremendous boost by the onset of COVID-19 in 2020 and has certainly paved the way for retailers in terms of their engagement in e-commerce and online marketing. In some instances, players such as Gap and Banana Republic have abandoned bricks and mortar stores entirely.