KUALA LUMPUR: Malaysian retailers are under increasing pressure to move away from their traditional "brick and mortar" models in order to stay relevant and thrive, amid the Covid-19 pandemic.
In a recent Ernst & Young live poll conducted during a webinar for the retail sector, 70 per cent of nearly 100 respondents shared that they were prioritising online sales and marketplace listings to improve their topline results in the immediate term.
The survey respondents recognised that there was a need to reinvent themselves, with digital strategies (55 per cent) and business restructuring (31 per cent) identified as key strategic options in the next 12 months, ahead of alternatives such as divesting non-core assets and mergers and acquisitions (M&As).
EY, a global leader in assurance, tax, transaction and advisory services, said regional sector trends were gaining headway locally.
"The accelerated disruption to the retail sector across Asean centers around three common trends. It is a matter of time before these trends are seen in Malaysia, with some already resonating locally," it said.
Preman Menon, partner of transaction advisory services at Ernst & Young PLT, said the rate of change in consumer behaviour had been rapid.
Retailers were having to anticipate the kinds of consumers that are emerging from the crisis, he added.
Preman said retailers must remain agile and build capabilities to remain relevant in the current market.
"They have to relook their business models, understand the changes happening in their markets and adjust to the new normal," he added.
Olivier Gergele, partner of strategy and operations at Ernst & Young Solutions LLP said Covid-19 was accelerating the disruption of retail in Asean.
He said players proactively rethinking their offering, online presence and back-end operations would come out of the crisis stronger.
"Post Covid-19, the winners will be those who are able to quickly adapt. It will be more a case of survival of the quickest, and not so much of the fittest," Gergele said.