Sunway Malls retailers granted flexible operating hours post MCO
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Malaysian mall operator Sunway Malls is testing a new policy to allow non-essential retailers to implement flexible operating hours following the advent of government movement control orders.
If the one-month test proves to be effective, Sunway will extend the policy for another two months.
The move will see participating retailers trading eight hours daily rather than the current 12, yielding a cumulative 30-day saving of 120 trading hours and allowing improved optimization of staffing arrangement from two working shifts to one.
Market estimates show that 35 percent of tenant retailer costs arise from wages, while rent constitutes 15 percent. Savings from the move are anticipated to be equivalent to a half-month’s worth of rental costs.
“We foresee after the resumption of business post MCO, there will be a gestation period before full recovery takes place,” said Sunway Malls and Theme Parks CEO HC Chan. “We understand too that the new normal of social distancing and absence of mass gathering will have the greatest impact for the first three months post-MCO. Taking cognizance of this, we have to accord some degree of business flexibility to our business partners.”
Sunway Malls will continue to operate as usual from 10 am–10 pm daily.
Questions & Answers
Q.Which retailers are eligible to participate in the flexible operating hours policy?
Which retailers are eligible to participate in the flexible operating hours policy?
The new policy allows non-essential retailers within Sunway Malls to implement flexible operating hours. This is being tested following the government movement control orders in Malaysia, aiming to help businesses adapt to the post-MCO environment.
Q.What is the expected financial benefit for retailers participating in the new policy?
What is the expected financial benefit for retailers participating in the new policy?
Participating retailers are anticipated to save an amount equivalent to a half-month’s worth of rental costs. This saving is primarily due to improved optimisation of staffing arrangements, shifting from two working shifts to one, and reducing wage expenditure.
Q.How long is Sunway Malls initially testing this flexible operating hours policy?
How long is Sunway Malls initially testing this flexible operating hours policy?
Sunway Malls is testing the new policy for one month initially. If this trial period proves effective, the company plans to extend the policy for an additional two months, providing retailers with sustained flexibility.
Q.What is the primary reason Sunway Malls is offering this flexibility to its tenants?
What is the primary reason Sunway Malls is offering this flexibility to its tenants?
Sunway Malls understands there will be a gestation period before full recovery post-MCO, with social distancing greatly impacting the first three months. They want to accord business partners flexibility during this 'new normal'.
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