Current dynamics in Malaysian malls’ tenant mix revealed

Prime malls continue to accommodate major brand expansions.

In a recent report, Savills revealed that the opening of new malls, notably The Exchange TRX in Kuala Lumpur, has introduced a new benchmark for current retail trends, attracting numerous new brands to the Malaysian market. 

“The Exchange TRX has welcomed several first-in-Malaysia stores, including Gentle Monster, Drunk Elephant, Seibu, Shake Shack, Chaumet, MIL Toast House, Maison Kitsuné, Ben’s Cookies, and Makii Makii, among others. The presence of these renowned international brands has become a significant draw for the Exchange TRX, enhancing its attractiveness,” the report said.

Here’s more from Savills:

In particular, the food & beverage sector has experienced substantial growth from local and international brands. Kenangan Coffee, which debuted in Malaysia in 2022 at Suria KLCC, now operates 48 outlets across the country, including Pavilion Kuala Lumpur, MidValley Megamall, and IOI City Mall. 

Similarly, Chagee and Zus Coffee are rapidly expanding, with 92 outlets and 330 outlets, respectively, many of which are located in malls. Hey Tea, originating from China, opened its first outlet in The Exchange TRX and has since expanded to MidValley Mall, One Utama, Sunway Pyramid and IOI City Mall. 

While prime malls continue to accommodate major brand expansions, suburban malls are observed to cater towards growing local brands and niche retailers. This shift is largely driven by suburban shoppers who seek convenience.