KUALA LUMPUR: Sunway Malls is expecting a 6.5 per cent year-on-year (YoY) growth in sales for the first half of 2024 (1H24).
This optimistic forecast is based on an 11 per cent sales increase in the first quarter of 2024, outperforming the national gross domestic product (GDP) growth of 4.2 per cent
Key drivers of this growth include strong performance at Sunway Carnival, the food and beverage sector, and double-digit growth in the jewellery and health and personal care sub-sectors.
F&B performance showed a 6 per cent YoY growth amidst deescalating food inflation, jewellery sales grew 14 per cent YoY driven by strong demand for gold, and health and personal care registered the highest growth year-to-date with a 25 per cent YoY increase.
Sunway Malls chief executive officer HC Chan said the expansion of Carnival in 2023 paved the way for better contribution in terms of sales growth.
"In fact, Sunway Carnival topped the sales performance among Sunway Malls during the last Raya festive period.
"We foresee even more upside with better yield from a refreshed tenant mix once the refurbishment of 500,000 square feet of existing space is completed," Chan added.
Regarding the outlook, he emphasised that Sunway Mall remains optimistic due to its proven track record, extensive network of business partners, and well-recognized brand.
However, he noted ongoing challenges from dampening consumer sentiment and spending, particularly due to the rollback of subsidies and concerns about the higher cost of living.
"For the longer term and broader outlook, Sunway Malls is expected to grow its portfolio of malls through both pipeline developments with 1.5 million net lettable area (NLA) and acquisitions with 1.5 million NLA) following Sunway Real Estate Investment Trust (REIT) recent acquisition announcements.
"Sunway is also building three malls, Sunway Square with a retail space of 300,000 square feet in Kuala Lumpur, Sunway Pier with a retail space of 350,000 square feet in Port Klang and Sunway Ipoh Mall with a retail space of 1 million square feet in Ipoh.
"Sunway Square is expected to be completed in 2025 whereas Sunway Pier and Sunway Ipoh Mall are expected to be completed in 2027," it added.