As inflation continues to escalate, Malaysian retailers are grappling with rising costs that threaten their profitability and sustainability. Web Bytes Sdn Bhd (Web Bytes), a leading retail management software company, emphasizes the critical role of technology in helping retailers navigate these economic challenges effectively.

According to recent data released by the Department of Statistics Malaysia, inflation in May is the highest in eight months, with the increase mainly driven by restaurant and accommodation services. Inflation has significantly increased the cost of doing business, impacting everything from supply chain expenses to operational overheads. To address these issues, small and medium enterprises (SMEs) and retailers are increasingly turning to technological solutions that can enhance efficiency, reduce costs, and improve overall business performance.

Speaking at a roundtable event together with Datuk William Ng, President of Small and Medium Enterprises Association (SAMENTA), and Dato Liew Bin, Deputy President of Malaysia Retailer Chains Association (MRCA), Ooi Boon Sheng, CEO of Web Bytes Sdn Bhd said, “Inflation poses a significant challenge for retailers, but technology offers powerful tools to help manage these pressures. By adopting advanced retail software solutions, businesses can optimize their operations, reduce waste, and streamline processes. Our goal is to empower retailers with the technology they need to not only survive but thrive in this challenging economic environment.”

One of the key areas where technology can make a difference is in inventory management. Advanced retail software can provide real-time data and analytics, helping retailers maintain optimal inventory levels, reduce overstocking, and minimize wastage. Additionally, automation of routine tasks such as invoicing and payment processing can significantly cut down administrative costs.

Datuk William Ng, President of SAMENTA, highlighted the importance of digital transformation for SME retailers. “SME retailers are particularly vulnerable to the effects of inflation. Embracing digital solutions is no longer optional; it is a necessity. By leveraging technology, SMEs can enhance their competitiveness, improve customer experiences, and ultimately, drive sustainable growth,” said Ng.

Contactless payment systems, for example, have gained traction even among SME retailers seeking to enhance customer convenience and streamline transactions. These systems not only improve the shopping experience but also reduce the time and resources spent on managing cash transactions.  Furthermore, e-invoicing policies and AI-driven analytics offer retailers a way to better understand consumer behavior, tailor their offerings, and optimize pricing strategies. These technologies can help retailers make informed decisions, stay agile, and respond quickly to market changes.

“In the face of rising costs, it is clear that technology will play a pivotal role in the future of retail. Data from our top 10 Xilnex retail merchants reveals that nearly 50% of their customers now use e-wallets for payments. This shift to cashless transactions has significantly reduced operational costs and minimized risks by cutting down on cash handling, thereby lowering potential losses from theft or errors. By leveraging real-time analytics, AI-driven insights, and automation, we empower retailers to not only manage inflationary pressures but also drive sustainable growth and enhance customer experiences,” ended Ooi.

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