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PETALING JAYA: Two thirds of businesses in Malaysia expect revenue generated through physical stores to increase next year, according to a survey on retail sector.

The survey, commissioned by Adyen and sponsored by KPMG, noted that three out of four Malaysian shoppers believe online shopping is just for convenience, while physical stores are where they shop for pleasure.

The survey done by Adyen, a Dutch financial technology (fintech) company, was to study global and local trends impacting businesses around the world, fuelled by evolving consumer behaviour.

Data for the survey, conducted last year, was collected from over 10,000 businesses and over 40,000 consumers from 23 and 26 markets, respectively, including 500 businesses and 1,000 consumers from Malaysia.

The sample includes minimum quotas of 100 businesses in retail, 50 in travel and hospitality, and 50 in food and beverage (F&B) sectors in each market.

Adyen representatives spoke to businesses primarily in the retail sector but also polled segments in the hospitality and F&B sectors.

Despite facing challenges caused by the Covid-19 pandemic and supply chain disruptions, the survey showed that 71% of Malaysian businesses across these sectors grew their revenue by 20% or more in 2021, and digital transformation played a pivotal role in it.

During a media briefing, KPMG Malaysia executive director and head of technology consulting Alvin Gan said: “Technology is here to stay and the focus is on improving them.”

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KPMG believes unifying business is the next frontier for long-term success.

“By connecting back-end systems and data insights, retailers can create more compelling customer experiences while supporting greater efficiencies and lower costs,” it said.

There is still room for growth globally, with 94% of businesses surveyed planning to invest further in their digital transformation this year.

In this year’s report, KPMG highlights the link between strategic digitalisation, customer experience and growth as well as the pivotal role payments technology plays for any business.

However, the report noted that only 47% of businesses understand the direct connection between customer experience and payments.

“Those that make this connection are financially better off,” it said.

Additionally, only 28% of businesses use payment data to improve customer experience or create new services.

On the adoption of fintech in Malaysia, Adyen South-East Asia and Hong Kong head of commercial Priyanka Gargav said more than one in four businesses connected payment systems to other parts of organisation.