Traders cautious despite brisk sales over long break

GEORGE TOWN: Despite a sharp rise in sales during the Raya week, traders are still playing it safe and are not rushing to stock up.

The weakening of the ringgit, high transportation cost and an anticipated slower market are among the reasons behind their decision.

Clothing shop owner Chan Seok Hooi, 46, who has been selling clothes imported from Thailand and Indonesia, said it was not the right time to bring in the latest fashions from these countries.

“Due to the unfavourable currency exchange rate, the timing is just not right to bring in more clothes from Thailand and Indonesia.

“Our ringgit is weak, which means things will be expensive for us and then we will have to raise our prices.

“Even transportation charges have gone up, which is bad for us.

“The Raya break will be over next week and we are unsure if there will be large crowds like the past few days,” said Chan when met at her shop in Penang Road.“I will just sell what I have for now,” she said.

Chan added that she has been enjoying brisk business, thanks to her many regular customers who have been coming from Kuala Lumpur since the beginning of the Hari Raya holidays.

“Business has been great this week as there have been tourists from other states coming into Penang for a holiday.

“They tend to explore the George Town area and walk by our shops, usually to buy caps because the weather is hot.

“My regulars would buy pants and cloth bags, especially those with pictures of the different landmarks and murals in Penang,” said Chan, who has been running the shop for over 20 years.

Souvenir shop owner Tan Seow Kee, 79, who specialises in antiques, said things were looking up as there had been foreign tourists coming from Australia and the United Kingdom.

But he would still prefer to wait it out before bringing in new shipment, believing that business would slow down soon after the Hari Raya break.

Tan, who took over the shop from his father in 1978, also noticed that the buying power among people has decreased due to the rising cost of living.

“The buying power needs to improve before I would consider bringing in more antiques and souvenirs.

“For now I am just selling my items at a cheaper price as it is better to have a turnover than no sales,” he said.

For the one-week holiday break, Tan said he has finally seen some business after a long dry spell.

“There have been customers looking for antiques this week.

“They came to buy antique jewellery, porcelain, antique China tea sets and local pewter, presumably as gifts,” he said.