Fashion
As the brick-versus-click-sales war intensifies, shopping malls in Singapore are plotting aggressive strategies to stay ahead in the game while they continue to battle falling tourist arrivals, the oversupply of retail space and growing competition for consumers’ attention.
Their renewed game plans include reshuffling the tenant mix, exploring more flexible leasing terms with tenants, revamping marketing campaigns and even forming alliances with online sales platforms — all of these aimed at getting consumers to shop more as they spend longer hours at their malls.
“Landlords are adjusting their marketing strategies and tenant mix and repositioning their properties towards offering more entertainment, services and food and beverage (F&B) outlets, aiming to remain relevant in the midst of shoppers taking to online shopping as well as changing consumer preferences,” said DBS Vickers analyst Derek Tan.
Mall operators are making more space for restaurants, cafes and bars as well as entertainment and services-oriented businesses, such as education, beauty and wellness, as these remain insulated from the online onslaught, while department stores and retailers that sell products such as books, toys and fashion continue to be hit by the surge in e-commerce.
Malls now allocate around 35 to 40 per cent of net lettable area to F&B, entertainment and services, compared with about 25 per cent around five years ago, Mr Tan noted.
The increased focus on F&B, entertainment as well as beauty and wellness is also demand-led, as young Singaporeans today are well-travelled and seek more in terms of enhancing their personal appeal and well-being.
“Singaporeans today are more sophisticated and want to explore more when it comes to F&B and beauty and healthcare. This is attracting new F&B players from Japan, South Korea, China, the United States and Europe to enter Singapore in a big way. Several Korean and Japanese cosmetic companies are also coming in,” said Mr Wilson Tan, chief executive of CapitaLand Mall Trust Management. He also emphasised the group’s strategic focus on necessity retail that defends it from disruptions in shopper traffic and volatility in sales revenue.
Besides the onslaught from online retailers offering low-cost shopping and free delivery services, a strong Singapore dollar has prompted Singaporeans to shop abroad as they travel for holidays, making it more challenging for mall owners to attract footfall.
“Over time, the way people shop will change … In the past, we did more conventional advertisements. As we move ahead, we see mobile and digital platforms becoming a lot more prevalent, and that is where we will be looking at, using new technology to bring people into the shopping malls,” Mr Tan said.
Malls are scurrying to identify ways to embrace new sales channels that allow traditional and online retailers to coexist and complement each other. Some are exploring the option of partnering with e-commerce players such as Qoo10.
