SUNWAY Malls is forecasting a stronger sales performance for the second quarter of 2022 (2Q22) at 117% compared to the pre-pandemic level.

The mall group operator said this was and will be driven by better Aidilfitri 2022 sales performance, endemic phase transition, improved labour market and stronger domestic and external demand.

The group, which has seven physical malls and one digital mall under its roof, saw its sales growth come in above expectations at 143% in April and 110% in May.  

It expects its performance to sustain at 100% for June.

The sales performance at 117% in 2Q22 is expected to surpass Sunway Malls’ 100% in 1Q22.

Sunway Malls & Theme Parks CEO HC Chan said the high sales performance of Aidilfitri in April provided a significant, leading and comfortable start for 2Q22.  

He added that in fact, April’s 143% sales performance is the highest to date, surpassing even January’s 116% during the Chinese New Year period.  

“Even if we compare Aidilfitri 2022 to the level of Aidilfitri pre-pandemic, it achieved 121%. Definitively, this is a very strong performance however you measure it,” Chan said in a statement on Thursday.

Commenting further, Chan said with the 2Q22 forecast, Sunway Malls will see three consecutive quarters of sales performance achieving 100% and more.  

He noted that the group had achieved its 1Q of 100% against pre-pandemic level in 4Q21 and repeated the feat in 1Q22.  

“With the latest 2Q22 projection, we are sighting nine months of uninterrupted 100%. Sunway Malls is seeing an accelerated and sustained recovery.

“The improved performance was also attributed by Sunway Malls replacement of outgoing weak and ailing retailers with strong and vibrant retailers with proven track record in driving footfall and higher per sq ft sales.   

“The continued strong performance from these retailers is expected to sustain the mall group’s performance moving forward,” he added.

Given the strong trajectory, Chan shared that Sunway Malls is expected to return to the pre-pandemic profitability level in 2022 itself.  

From its diverse malls’ portfolio, he said the mall group is forecasting a return to 2019’s profitability, adding that depending on location, some malls might even exceed pre-pandemic level of profitability.

In terms of ageing, Chan noted that the group is also seeing marked improvement in lowering outstanding arrears that stood at RM100 million in September 2021.  

He added that Sunway Malls forecasts a reduction of 80% outstanding arrears by the end of 2022.

Additionally, he said this year, the mall group is also anticipated to keep its new shop opening momentum resilient with 300 new shops opening following the expansion of the Sunway Carnival and other renewal cases across its malls.  

For the record, Sunway Malls welcomed 200 new shops in 2020 and 160 shops in 2021 despite the pandemic.

“When we examine the metrics of profitability, arrears and new shops opening, Sunway Malls is performing well on all fronts and even buckling the industry’s trend,” Chan said.

Sunway Malls remains positively optimistic with the 2022 economic outlook moving forward.

With the Malaysian economy expected to continue its recovery momentum this year after favourable performance in 1Q22, notwithstanding external risks and downward pressure, the mall group’s performance and recovery is expected to be progressive, in line with broader economic indicators improvement.

However, inflationary headwinds, food supply disruption, escalating energy cost, higher commodity prices and interest rates hike will weigh in the short term.  

In the longer term, the pace of private investment is expected to pick up in the coming quarters with investment activities projected to improve further alongside. — by S BIRRUNTHA / pic source Sunway Malls Career & Community’s Facebook