Johor’s retail industry relies heavily on regional tourism and, in particular, Singapore shoppers.
The association said retailers began to see declining sales due to the spread of Covid-19 and the implementation of the Movement Control Order in March, which led to a drop in the number of foreign tourists. He said shopper footfall at malls and shops that rely on Singaporeans and tourists had dropped drastically.
“Retailers are looking at cost-cutting … from rental rates to workforce and supplier cost readjustments, with some pushing their business online via digital marketing and e-commerce.” Customers will go back to bricks-and-mortar stores when they want to experience the ambience a virtual store cannot provide. KGV International’s Samuel believes more retailers will adopt an online-offline business model.
In fact, Samuel said, the trend towards internet retailing had already begun before the pandemic, with more retailers going online to reach out to a wider market.