Sunway Malls, the operator of seven malls covering a total of 5 million square feet of net lettable area (NLA), anticipates a robust 6.5% sales growth for the first half of 2024 compared to the previous year. This optimistic outlook follows a strong first-quarter performance, which saw an 11% increase in sales, outpacing the national GDP growth of 4.2%.
HC Chan, CEO of Sunway Malls & Theme Parks, attributed the positive results to strategic initiatives such as expanding their footprint in the northern region alongside their established central region presence. The recent expansion of Sunway Carnival has particularly contributed to its enhanced sales performance, with Chan highlighting its top ranking among Sunway Malls during the recent Raya festive period.
The mall group’s diversified tenant mix has also played a pivotal role in sustaining growth, with notable performances in the F&B sector showing a 6% year-on-year increase amidst stabilizing food prices. Significant growth was observed in jewellery sales, up 14% year-on-year, driven by strong demand for gold, while the health & personal care segment recorded an impressive 25% growth year-to-date.
Looking ahead, Sunway Malls plans to further bolster its portfolio through strategic asset enhancement initiatives (AEIs). Currently, the group is investing RM550 million in AEIs for 800,000 square feet of retail space across Sunway Pyramid and Sunway Carnival. These projects have already secured a promising 90% occupancy rate, reflecting strong demand from tenants and consumers alike.
Despite positive growth prospects, Chan acknowledged challenges posed by subdued consumer sentiment and spending concerns amidst economic uncertainties. The recent dip in the Consumer Sentiment Index to 87.1 underscores these challenges, attributed to worries over employment prospects and rising living costs.
In the long term, Sunway Malls remains optimistic about expanding its retail footprint with upcoming developments and acquisitions. Plans include the construction of three new malls: Sunway Square in Sunway City Kuala Lumpur, Sunway Pier in Port Klang, and Sunway Ipoh Mall in Sunway City Ipoh, collectively adding 1.65 million square feet of retail space by 2027.
Moreover, recent acquisitions by Sunway REIT, which include six Giant retail complexes and Kiara 163, will further augment Sunway Malls’ retail portfolio shortly, aligning with their growth strategy.
“In summary, Sunway Malls is well-positioned for continued growth, leveraging our strong brand presence and strategic expansions,” Chan affirmed, highlighting the group’s commitment to sustained development and operational excellence in Malaysia’s competitive retail landscape.
