BETTER times are in store for the retail sector this year with rentals estimated to grow at 6% from 2.6% in 2003, said Suria KLCC Sdn Bhd general manager Andrew Brien.

He said, in his paper Retail Opportunities presented at the 15th National Real Estate Convention in Kuala Lumpur yesterday, that the growth of retail rentals would be due to the improving job outlook in Malaysia and consumer confidence which is running high.

When their job outlook improved, people would be more willing to spend on products and services, Brien said, adding that the growth also would came from a change in consumer lifestyle and shopping habits.

The Federal Territory, Selangor, Penang and Johor Baru are projected to score well in the retail segment this year. ''Selangor recorded the highest occupancy rate, reaching almost 100% for certain shopping centres in the Klang Valley last year. It will continue to do well this year,'' Brien said.

On emerging trends in consumer habits, he said Malaysian consumers were becoming more sophisticated and more conscious of products locally and internationally.

''Consumers are now more receptive towards 'value for money' products – high quality products with good customer service,'' Brien said.

''Retail centres are changing roles in the society. They are the places that people go to to socialise with one another besides getting their groceries and watching a movie or going bowling once in a while.

''Many entrepreneurs are also setting up business in shopping malls because they have the highest crowd concentration,'' he added.

A separate report indicated that retail space in the Klang Valley was estimated to grow by 2.4 million sq ft this year, a further 3.2 million sq ft in 2005 and by 5 million sq ft in 2006.

Source : The Star  18/3/2004