Retail business situation in Singapore

[zuoom]

New youth shopping area in Suntec a 'ghost town'
 
http://singaporeseen.stomp.com.sg/singaporeseen/viewContent.jsp?id=28528
 
A STOMPer said the new shopping area in Suntec City Mall, My Playground (MPG), looks more like a 'ghost town'.

Shops in this area sell goods targeted at youths.

Said the STOMPer:

"The photos show the conditions during weekdays and weekends.

"These photos were taken during a Saturday afternoon around 4pm.

"In the photos we can hardly see any shoppers walking around and business is very poor.

"Many shops had also closed and shifted out of MPG as there are hardly any sales.

"As there are no potential new tenants coming in to occupy those vacant units, the whole MPG has become a 'Ghost Town'."

The STOMPer hopes more can be done in terms of marketing campaigns to promote MPG, adding that many people working in the building do not even know that the place exists.

read it via : http://forums.delphiforums.com/sammyboymod/messages?msg=185018.1

[zuoom]

some replies from that thread.

Singapore airport T3 also like a ghost place.All shops and eating outlet on standstill.Maybe many singaporeans boycott that place due to employers hires too many PRC or maybe the food there taste horrible.

Lots of shops at North point has closed down too... Things are getting very ex nowadays even durain roll from Angie the choice are not spared too. Last month was $2.60 and yesterday found out it has risen to $3.50...Gosh got to bite the pain and walk away without buying it..

hmm.. Raymond, what's your take on that place? (since you own Swiss Culture and would probably be more familiar with the situation at Suntec.)

[zuoom]

Retailers at Changi's T3 say business bad, six months since its opening

SINGAPORE: With more than 100 retail establishments, Singapore Changi Airport's Terminal 3 is touted as the latest shopping destination for ‘mall-crazy’ Singaporeans. But six months since its opening, retailers said business is suffering.

Changi Airport's T3 public area has 31 outlets. Weekends may be slightly better but they're barely making ends meet.

Channel NewsAsia checked on some 15 stores. Most did not want to speak on camera but all said they've been struggling to meet overhead costs.

Compared to when T3 first opened early this year, some shops say takings have dropped by up to 70 per cent.

If this continues, some said they may not renew their lease which lasts for three years.

Mohd Fadly Mohd Nor, Retail Supervisor, Outdoor Lifestyle, said: "After the first two months of Terminal 3 opening, the crowd has died down a bit. Maybe because the novelty is not there anymore."

Karen Seow, Retail Supervisor, Helen Accessories, said: "Some of the things like clothing or shoes, we don't have it here. Actually there’s not much of shopping here."

And some Singaporeans also admitted that it isn’t a retail haven.

One shopper said: "I guess there's a lot more improvement to be made. You can't get much variety here."

Retailers said another problem is the mall's layout and that is the reason why many people are unaware of several shopping clusters at T3.

The authorities put the slowdown to several factors including retailers setting too high an expectation when they tendered for their lease and the fact that pegging an airport as a shopping destination is a new concept in Singapore.

Foo Sek Min, Senior Director, Airport Management Group, Civil Aviation Authority of Singapore, said: "This is something new to us and the tenants. It's not exactly like a typical shopping mall. So we really need to understand what people are buying and what they are not buying. We will work with the tenants and we want to help them.

So far, the authority has extended rental assistance for half a year, starting this month and it is hoping things will perk up for both retailers and shoppers. - CNA

read via : http://forums.delphiforums.com/sammyboymod/messages?msg=184893.1

[swissaudi]

some replies from that thread.

Singapore airport T3 also like a ghost place.All shops and eating outlet on standstill.Maybe many singaporeans boycott that place due to employers hires too many PRC or maybe the food there taste horrible.

Lots of shops at North point has closed down too... Things are getting very ex nowadays even durain roll from Angie the choice are not spared too. Last month was $2.60 and yesterday found out it has risen to $3.50...Gosh got to bite the pain and walk away without buying it..

hmm.. Raymond, what's your take on that place? (since you own Swiss Culture and would probably be more familiar with the situation at Suntec.)

Hi Bro ,

I believe that every individual tenants got to work on their own products and do some promotions probably with the bank to attract the crowd in themselves . I do see that the A & P guys from Suntec can do events and bring many peoples to the mall probably bringing some superstars but in the end I believe it still the shoppers's choice to spend their money on whichever outlets .

Anyway times is bad now and I believe that everyone is spending their every cents wisely . Even for myself , rents goes high , supplier increase prices { Cooking oil used to cost $17.00 per tin but now to $37.00 } , how much can I increase the customers ?

Ever tried increasing like $0.80 for my set meal and saw some regulars dun come so often . Maybe some executives used to come like twice a week for set lunch and gradually to once a week .

Anyway it's a chicken and egg issue always for things like that . { Note the pix at Sat 4.00 p.m but the shops are closed ? }

Just my 2 cents worth

Cheers
Swissaudi

[zuoom]

individual can only do that much. for such an location, it needs the synergy of many shops. if only like a handful out of the 20-30 shops are good. then, it will not attract a good amount of traffic. it will however, still get those people looking for those good shops.

"A & P" is what ah?

there's one classic example i can give on synergy. Sim Lim Square. rundown place, bare. boring. but hell, that's the heart of the consumer electrical products market here. 2 years back, some of the shops left SLS n went over to Funan to open there.  n long story short, they flopped. and had to move back to SLS. (likewise for some that open a branch at Funan, then close it down.) 

incidentally, some shops at Funan uprooted themselves to move over to SLS.

cost of material has seen it's most crazy rise this year. hence the record inflation figures of 6-7% (projected). real person experience is higher.

on the decision whether to increase prices will have to depend on price elasticity. you go up by A1 amount, have would be the percentage drop in B? you go up by A2 amount, what would be the drop in B2? (you would know better lah, since you are in the business for how long? 8 years?! .P)

one thing that's universal and that you can apply is to control/cut cost.
ie: less wastage of food while in prep
ie: smaller portion.

it's reported in the papers that some products like JAM bottle have reduce it's volume, while retaining the price. likewise for some drinks etc.

==========

personally, i was there at the "New youth shopping area in Suntec" a couple of times (weekday 6pm, weekend 2pm). it was really quiet n dead. was quite puzzled because just a 5 minutes walk away, those carrefour n the main lobby area is packed with people!

[swissaudi]

Hi Bro ,

I agree with you that individual can only do that much . Cause one by itself , strength is very limited . I so also agree with you that it is ironic why carrefour side so many ppl when actually less than 30 step away is a dead place .

However , if the individual shop sells unique things , I believe that they can make it for sure . There is one shop that I notice where they customise wedding favours opposite Wangz cafe whcih seriously impressed me though it is a very small shop but the things inside is something that I would recommend my friends if they do need it .

As for the fashion statement shop , I cannot really comment as I notice some of their product when you have posted recently and walk around . In fact their price is reasonable but it is only the shoppers dun really notice it . But as their is a small scale base , they do have promblem storing their stocks thus limited sizes so results to no deal close .

Well , it never easy to run a biz always as I have been up and down throughout my biz with good and bad days . But still I believe that the A & P { Advertising and Promotions } dept can probably consider attack the weak points of the shoppers and make them feel value for money .

I agree that portions are getting smaller nowadays esp I always eat a western food stall where they used to give chilli satchet in 12gm but now to 8 gm . Though it may be small savings but long term I believe it is significant .

Just my 2 cents worth 


Swiss Audi

[77LostBoy77]

Hi bro, do you happen to know any A&P or S&M ppl ?

Cheers !

[zuoom]

in the recent F1, it was reported that business lagi worst.

so, what gives in the retail situation here?

[zuoom]

http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_296802.html

Home > Breaking News > Singapore > Story
 Oct 31, 2008

Retailers face hard times 
Smaller players offering mid- to high-priced items may be worst hit 
By Tessa Wong 


A SHAKE-UP in the retail industry is looming as worries over the economic outlook threaten to crimp spending.

Award winners


PHOTO: PARAGON


BEST RETAIL CONCEPT: Paragon Market Place. The revamped supermarket features a speciality area with more than 500 premium products, and a new catering service that comes with a personal chef.
... more
Industry players are worried that the impact of the current downturn will be worse than that during the Sars outbreak in 2003, or the Asian financial crisis a decade ago.

Speaking on the sidelines of the Singapore Retailers Association's (SRA) glittering annual ball last night, several said they expect smaller retailers who offer mid- to high-priced items, such as gourmet food or high-street fashion, to be hardest hit.

Ms Lau Chuen Wei, SRA's executive director, explained that larger retailers have deeper pockets and are therefore better positioned to weather drops in sales.

Wealthy consumers who can afford high-end luxury items will continue to shop, she added, while retailers offering budget buys, such as This Fashion or Daiso, will probably thrive as shoppers seek to cut costs. 'Instead of that $100 dress, a shopper may now buy a $40 dress instead.'

Some retailers are already reeling.

Business development manager Tan Yew Jin of Alpha Sky, which runs the local franchise of French shoe brand Schu, said it is considering closing down one of its two outlets here. Its shops are at Wisma Atria and Suntec City.

He said sales for one of its outlets dived by up to 60 per cent last month. 'We could not even cover our costs,' he lamented.

Retailers who are not in malls could be another vulnerable group, said Mr Danny Yeo, director of retail at property consultancy Knight Frank.

Mall tenants can work collectively and thus gain more leverage over their landlords. Stand-alone shops, on the other hand, will have to pay the going rate, or pull down the shutters.

But there is a silver lining, experts said: Shoppers will benefit. With retailers desperate to survive, they will start slashing prices and offering deeper discounts to remain competitive.

Despite the bleak outlook, SRA president Jannie Tay sought to allay fears in her speech at last night's event.

'We have been anticipating bad news, but in reality, retail is still buzzing,' she told the more than 800 guests, clad in dazzling gowns and smart suits for the ball at Raffles City Convention Centre.

Citing the example of this year's Great Singapore Sale, which she said did much better than last year's, she said the retail industry is more structured now than it was a decade ago. It is thus more capable of withstanding challenges.

But Dr Tay did not discount the fact that an uphill road lay ahead, and appealed to landlords to reduce rents to help retailers. 'This is really our cry for help. I see some landlords in the audience and I hope they are listening,' she said.

Soaring rents and overhead costs have been perennial bugbears for retailers here. But though Dr Tay asked landlords to cut rents by between 30 to 50 per cent, as they did during the Asian financial crisis, Knight Frank's Mr Yeo said he held out little hope of this.

He predicted that rents would come down by 2 to 3 per cent, at most.

'At the end, it's subject to market conditions. Landlords will still need to make investments and do business,' he said.

twong@sph.com.sg

via : http://www.singsupplies.com/showthread.php?t=8224

[zuoom]

how's the retail situation?

from Cobra's post.. he mentioned that it's crowded like crazy.

what about your experience?

[Vorsprung durch Technik]

we will have sales all year long to maintain the retail bull

[zuoom]

how long can a sale last?

how much can a person buy?

who will be buying?

what will they be buying?

why would they buy? just because it's "cheap"?

[Vorsprung durch Technik]

end of the day is about survival! aside those factors like branding, marketing, if you go for quantity, you will see they are likely to survive in this harsh market. 

[Vorsprung durch Technik]

if anyone realise, even when giodarno is having 40% disc, they still earn!

[zuoom]

SINGAPORE: Singaporeans appear to be heeding the call to shop this festive season despite the recession. Retailers in both Orchard Road and the suburban areas said they have not seen a significant drop in sales.

Christmas lights and candy canes line Orchard Road and malls are going all out to lure the crowds.

Said one man in the street: "I still maintain the same budget unless I get any bad news for my job. But so far, it is still okay for me."

A CapitaLand spokesperson said some of the group's malls like Raffles City and Tampines Mall have even seen an increase in shopper traffic.

Another large retailer is also optimistic.

Edward Tan, director, Operations Metro, said: "I expect things to be quite normal. I don't foresee anything bad until after Chinese New Year."

The growth of sales in the suburbs is not surprising as some shoppers said they have adjusted their budgets and are shopping more in the heartlands.

Said another man in the street: "I used to shop at the Orchard Road area, but now I go to Chinatown as I find it cheaper here."

However, some heartland shopkeepers at Toa Payoh Central reported a drop in sales.

But most also acknowledged that while customers may be more particular about what they buy, the economic downturn has not had a significant impact on their sales so far.

With extended shopping hours and discounts attracting shoppers, not only in Orchard Road but in suburban areas, retailers appear to be winning the battle against the economic downturn, at least for now. - CNA/vm

First time going to Orchard Road today for the month of Dec. Terrible.. so crowded... traffic jam along orchard road, human traffic also jammed orchard road and also shopping malls. Sure recession coming?!?

SINGAPORE: Further economic contraction is expected in the first half of 2009, with the possibility of a deep and protracted recession, according to a recent poll of 16 fund managers by OCBC's Wealth Management Unit.

Those surveyed said things are likely to get worse before they get better. But the good news is that most of the fund managers said Asia would emerge stronger from the crisis, due to the strong fiscal positions which the countries have built up.

The fund managers said Asian countries have accumulated large foreign exchange reserves which should buffer them through the storm. On the other hand, some of those polled favoured developed markets like the United States and United Kingdom for their defensive qualities.

The fund managers also expected the world economy to rebound only at the end of 2009, signalled by a pick-up in the US housing market. But for now, they warned that the equity market will remain volatile, and earnings will face further downward pressure.

Looking into 2009, those polled said given the worsening global economy, they preferred fixed income securities over equities as easier monetary policies bode well for fixed-income securities such as corporate and government bonds.

In the short term, the fund managers said they remained cautious about Chinese equities as they were likely to remain volatile.

According to Allianz Global Investors, pump-priming by the Chinese government is welcomed, but the effects will take a while to filter through to the real economy. It said at the moment, it is too early to talk about a sustained recovery.

In the long term, fund managers expected gold and other commodities to shine with potential.

Most of the fund managers polled remained optimistic on the outlook for commodities as the sector is expected to continue on a long-term uptrend.


- CNA/so

via : http://forums.sgfunds.com/viewtopic.php?t=8031&start=1325

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regarding spending... this one might be a "trap".

it seems that some are using "future money" and the power of installment for their purchases.

in the past, these combo is usually reserved for bigger ticket items. ie: > 10K in value.
in recent times, it's observed to be used for increasingly smaller purchases. say from 1K onwards.

who's doing this?
how many is on this path?
why are they doing it?
where is it been done?
what does this means?