MPH Bookstore may quit Singapore
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Malaysia’s MPH Bookstore may exit Singapore, closing its last outlet by September.
The chain announced its plan to close Raffles City and Parkway Parade outlets on July 28 and September 1 respectively. But the company signalled it is open to replacing the two outlets with a single store if it can find the right location at the right rent.
MPH is closing the stores due to high rental costs and intense competition from online booksellers.
As a result, the chain has plans to “restructure and streamline its resources for new business plans”.
“Most of these online retailers give between 15- and 25-per-cent discount. Another unfair advantage is they don’t have to charge GST,” MPH Bookstores area manager Ismail Osman said in April.
He also revealed that sales at MPH had declined by 40 per cent over the last 10 years.
MPH Singapore’s first flagship on Stamford Road closed in 2003, after nearly 100 years, due to declining sales.
MPH’s closure news came one month after other bookstore chains such as Popular and Japan’s Books Kinokuniya also closed their outlets after more than 30 years trading.
Questions & Answers
Q.What are the main reasons MPH Bookstore is considering exiting Singapore?
What are the main reasons MPH Bookstore is considering exiting Singapore?
The company is closing stores due to high rental costs and intense competition from online booksellers. Online retailers offer significant discounts and do not charge GST, creating an unfair advantage.
Q.Has MPH Bookstore considered alternatives to fully leaving Singapore?
Has MPH Bookstore considered alternatives to fully leaving Singapore?
Yes, MPH has signalled it is open to replacing its two closing outlets with a single new store. This depends on finding a suitable location with acceptable rent.
Q.What financial impact has MPH Bookstore experienced recently?
What financial impact has MPH Bookstore experienced recently?
MPH has seen a 40 per cent decline in sales over the last 10 years. This has led to plans for restructuring and streamlining resources for new business plans.
Q.Are other bookstore chains in Singapore facing similar challenges?
Are other bookstore chains in Singapore facing similar challenges?
Yes, other bookstore chains like Popular and Books Kinokuniya have also recently closed outlets. These closures occurred after more than 30 years of trading.
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