In 2024, the retail trade sector in Malaysia was estimated to contribute around *** percent to the country’s gross domestic product (GDP). The contribution from this sector has increased by *** percent over the past two years, following the decline in the retail trade industry’s contribution experienced in 2021. Retail market expects more growth the inflation rate in the country, which caused the prices of consumer goods to increase. Nevertheless, as the inflation rate was expected to moderate in 2025, this could positively impact the retail trade sector in the next few years. Offline stores dominate retail sales Despite the availability and convenience of online stores, Malaysian consumers still indicated in a 2023 survey that they market share of FMCG sales channels in the country, with a share of more than ** percent in 2024.

The Malaysian retail industry, valued at approximately $89.66 million in 2025, is projected to experience robust growth, fueled by a Compound Annual Growth Rate (CAGR) of 5.94% from 2025 to 2033. This expansion is driven by several key factors. Rising disposable incomes, a burgeoning middle class, and increasing urbanization are significantly boosting consumer spending. E-commerce penetration is also accelerating, offering new avenues for retailers to reach a wider customer base and enhance convenience. The diversification of retail formats, encompassing supermarkets, specialty stores, and a rapidly expanding online presence, caters to evolving consumer preferences and shopping habits. However, challenges remain, including intense competition from both domestic and international players and the impact of fluctuating economic conditions. Successful players will need to adapt to the changing landscape by prioritizing customer experience, embracing digital technologies, and optimizing their supply chains for efficiency. The industry’s segmentation, including food and beverages, personal care, apparel, electronics, and furniture, demonstrates the breadth of retail offerings catering to diverse consumer needs. Major players like Parkson Holdings Bhd, Aeon Group, and Tesco Malaysia are continuously adapting their strategies to maintain market share in this dynamic environment. The growth trajectory of the Malaysian retail sector is expected to remain positive through 2033. Continued investment in infrastructure, especially in logistics and e-commerce infrastructure, will further fuel this growth. Government initiatives aimed at supporting small and medium-sized enterprises (SMEs) within the retail sector will also contribute positively. However, potential headwinds include geopolitical instability and inflationary pressures, which could impact consumer confidence and spending patterns. The ongoing development of sustainable and ethical retail practices will also be critical for long-term success, aligning with consumer expectations and environmental concerns. Market segmentation and regional variations will need to be carefully considered for effective strategy implementation, with a focus on tailored offerings and localized marketing campaigns to maximize reach and profitability across different demographic groups. This report provides a detailed analysis of the Malaysian retail industry, covering the period from 2019 to 2033, with a focus on the year 2025. It delves into market size, segmentation, trends, challenges, and growth opportunities, offering invaluable insights for businesses operating in or considering entry into this dynamic market. The report leverages data from the historical period (2019-2024), the base year (2025), and forecasts up to 2033, providing a comprehensive view of the industry's evolution. Keywords: Malaysia retail market, Malaysian retail industry, retail sector Malaysia, e-commerce Malaysia, supermarket Malaysia, department store Malaysia, retail trends Malaysia. Recent developments include: In December 2020, Robinson & Co., one of the leading global department store operators, exited the Malaysian market following its inability to continue operations due to weak demand due to the COVID-19 pandemic.. Notable trends are: Food and Beverages Segment has been Contributing a Major Share to the Market Revenue.

The Report Covers Malaysia Retail Top Retail Companies and the Market is segmented by Products (Food and Beverages, Personal and Household Care, Apparel, Footwear, and Accessories, Furniture, Toys, Hobby, Electronic and Household Appliances, and Other Products), Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, and Department Stores, Specialty Stores, Online, and Other Distribution Channels).

As of the third quarter of 2024, supermarkets had a ** percent market share in the distribution of fast-moving consumer goods (FMCG) in Malaysia. This type of retail store made up the highest market share among other sales channels for FMCG in the country.

Retail Sales in Malaysia increased 5.40 percent in June of 2025 over the same month in the previous year. This dataset provides - Malaysia Retail Sales YoY- actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2022, Mr. DIY had the largest market share in the home improvement market in Malaysia, with ** percent. This was followed by Home Pro, with **** percent market share. Mr. DIY was established in Malaysia in 2005, and has since became one of the largest home improvement chain stores with presence in ** countries.

The Malaysian retail industry, valued at $89.66 million in 2025, is projected to experience robust growth, driven by a rising middle class with increasing disposable incomes and a burgeoning e-commerce sector. Key growth drivers include the expanding preference for convenient online shopping, the diversification of retail formats catering to evolving consumer preferences (from hypermarkets to specialty stores and niche online retailers), and government initiatives aimed at boosting domestic consumption. Segments like food and beverages, personal care, and electronics are significant contributors to overall market value, experiencing substantial growth fueled by rising demand for convenience and premium products. However, the industry faces challenges such as intense competition, rising operating costs, and the need to adapt to constantly shifting consumer behavior. Furthermore, the global economic climate and potential supply chain disruptions pose ongoing risks. The industry is also witnessing a rise in omnichannel strategies, with established brick-and-mortar retailers increasingly investing in online platforms and integrating their physical and digital offerings to enhance customer experience. This integration is crucial for maintaining competitiveness in the dynamic Malaysian market. Leading players like Parkson Holdings Bhd, AEON Group, and Tesco are adapting to these trends by strengthening their online presence and expanding their product portfolios. The forecast period (2025-2033) anticipates a Compound Annual Growth Rate (CAGR) of 5.94%, indicating sustained expansion. This growth will be influenced by factors such as increased urbanization, a growing young population, and a preference for branded products. The distribution channel segment is witnessing a shift, with online retail gaining traction. However, traditional channels like supermarkets and specialty stores retain significance, reflecting the importance of both online and offline shopping experiences for Malaysian consumers. The geographical distribution of the market shows concentration in major urban centers, yet opportunities exist for expansion in less developed areas. Successful players in the coming years will likely be those who effectively balance online and offline strategies, provide a seamless customer experience, and adeptly navigate the challenges of a dynamic and competitive market. Recent developments include: In December 2020, Robinson & Co., one of the leading global department store operators, exited the Malaysian market following its inability to continue operations due to weak demand due to the COVID-19 pandemic.. Notable trends are: Food and Beverages Segment has been Contributing a Major Share to the Market Revenue.

Malaysia retail market valued at USD 89 Bn, driven by urbanization, rising incomes, and e-commerce growth. Projected expansion in online and health segments.

The Retail Industry Market is Segments by Product Type (Food, Beverage, and Grocery, Personal and Household Care, Apparel, Footwear and Accessories, and More), by Distribution Channel (Supermarkets/Hypermarkets, Convenience and Discount Stores, Specialty Stores, and More), and by Geography (North America, Europe, Asia-Pacific, and More). The Market Forecasts are Provided in Terms of Value (USD).

As of the second quarter of 2024, supermarkets held the highest market share in the fast-moving consumer goods (FMCG) retail channel in Malaysia, with ** percent. Offline channels are still a key part of the retail landscape in Malaysia. However, the number of online sales channels is likely to grow in the near future. General trade operators in rural and urban areas in Malaysia The FMCG sales channels in Malaysia range from supermarkets, hypermarkets, minimarkets, and traditional stores to specialty retailers such as drug stores and pharmacies. More than ** percent of Malaysia's total population live in urban areas, and larger stores such as supermarkets, hypermarkets, and department stores are mostly located in these areas. In comparison, the general trade operators are found in all cities and rural areas in Malaysia. Most general trade operators are small, family-run businesses that are an essential part of the local economy. They usually rely on consumers who need a smaller number of grocery items and other daily essentials. To protect these small operators, the government has prohibited new foreign hypermarkets in towns with less than 250,000 inhabitants. Due to this regulation, traditional stores such as wet markets are more commonly found in more rural areas than in urban areas. Moving towards online purchase channels Although e-commerce only takes up a small percentage compared to other FMCG sales channels, the number of online sales channels is expected to rise accordingly with the increasing e-commerce market value in Malaysia. The e-commerce share of total retail sales is forecasted to increase fivefold in ten years. Due to the COVID-19 pandemic, Malaysian consumers have decreased their out-of-home spending. Many consumers started to purchase less in physical stores and more online. While most larger stores with higher capital can adapt faster to meet the demand for e-commerce, affordable technology and better infrastructure in smaller towns need to be developed further to enable the general trade operators to compete equally online.

In Malaysia Retail Automation Market, The rise of e-commerce, the demand for personalized shopping experiences, and the need for efficient supply chain management have fueled the adoption of retail automation technologies.

Malaysian Retail Market size was valued at USD 89.66 Billion in 2024 and is projected to reach USD 146.75 Billion by 2032, growing at a CAGR of 5.94% from 2026 to 2032.

Malaysian Retail Market Drivers

Rising Disposable Income and Expanding Middle Class: As the Malaysian economy grows, an increasing number of households have higher disposable incomes, leading to greater consumer spending on retail goods and services. The expanding middle class further fuels this demand for a wider variety of products. Urbanization: The continuous migration of people from rural to urban areas concentrates purchasing power in cities, leading to the growth of modern retail formats like shopping malls, hypermarkets, and convenience stores. Urban dwellers also tend to have different consumption patterns and a higher demand for convenience. E-commerce Growth and Digitalization: The increasing internet penetration and smartphone usage have led to a significant rise in online shopping. This provides retailers with new channels to reach consumers, expand their market, and offer greater convenience, driving overall retail market growth. Mobile payments and digital wallets further facilitate online transactions. Government Initiatives and Support: The Malaysian government supports the retail sector through various initiatives aimed at boosting domestic consumption, attracting tourism, and promoting digitalization among SMEs in the retail space. Cultural and Festive Spending: Malaysia's diverse cultural landscape and numerous festivals throughout the year result in significant spending on retail goods, particularly food, apparel, and gifts, during these periods. Events like Chinese New Year and Ramadan significantly boost retail sales.

Forecast: Retail Trade Industry Contribution to GDP in Malaysia 2023 - 2027 Discover more data with ReportLinker!

Forecast: Wholesale and Retail Trade Industry Contribution to GDP in Malaysia 2023 - 2027 Discover more data with ReportLinker!

In Malaysia Smart Retail Market, offering valuable insights, key market trends, competitive landscape, and future outlook to support strategic decision.

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This databook uses data from GlobalData’s Retail database showing the trends in the market and sectors by value. It also reveals the major retailers by market share in 2020 in each of the sectors. All data includes the impact COVID-19 has had on sales in 2020 (forecasted at the date of publication). Read More

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