Slower sales for Chinese New Year goodies, Chinatown retailers say
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Food takes centrestage during Chinese New Year, like most festive celebrations. But in the lead up to the occasion this year, retailers selling festive goodies say business is more lacklustre compared to 2015.
Family-run bak kwa (sliced barbecued pork) stall Bee Kim Heng has seen festive retail sales drop by 10 to 20 per cent compared to last year. Based at People’s Park Food Centre, Bee Kim Heng – which is run by Mr Teo Ah Thin, 81 – has been in operation for almost 50 years.
“We suspect it’s the economy, it’s because of the retrenchments that are going around in the market,” said Mr Damien Teo, who helps his father out during busy periods like Chinese New Year.
Mr Teo, who is in his 30s, added: “A lot of our business is very dependent on regular customers. Some of the regular customers, for example – in the year before, they’d buy 3kg, maybe 5kg. This year, some of them have cut down in terms of the quantity they buy. They just want to save up a bit, I guess.”
Similarly, fruit and nut supplier Tian Ran has experienced a 30 per cent drop in sales for the festive period. “A lot of people of browsing and tasting, but fewer are buying. I think it’s due to the bad economic situation,” said a Tian Ran employee, who only wanted to be known as Mr Fang.
Mr Fang has been selling peanuts and melon seeds – traditional Chinese New Year snacks – for the past eight years. While this year’s takings are poorer than last year, the 40 year-old said he feels things are not as bad as in the aftermath of the 2008 global financial crisis.
Less than a few hundred metres away, in the annual Chinatown Festive Street Bazaar, employees running a temporary waxed meat stall also opined that buying sentiment is poor.
“We suspect it’s the economy, it’s because of the retrenchments that are going around in the market,”
“We’re mainly in distribution, but we have set up a stall at this bazaar for many years. This year, sales are down about 30 per cent,” said a stall employee, who only gave his name as Mr Liang.
The 56-year-old who been in the business for 30 years, believes that caused shoppers have held back due to the rainy weather, and a poorer economic climate.
A MIXED PICTURE, OVERALL?
Outside of the Chinatown area – the epicentre of Chinese New Year shopping – other consumer businesses appear to be faring a little better.
For example, Paradise Group, which will have over 20 restaurants in operation on the first and second day of the Chinese New Year period, told Channel NewsAsia these restaurants are already 80 to 90 per cent booked for the first day.
Hotel Fort Canning also expects to “sell-out for the season”, as it caters to both foreign visitors and local staycationers. In an email reply, a hotel spokesperson said: “Demand for our rooms are typically higher during this extended period of festivities and the hotel usually runs at full capacity.”
Meanwhile, online travel agency ZUJI has recorded a 17 per cent year-on-year increase in staycation hotel bookings during the Chinese New Year period, with an average spend of S$190 to S$220 per night.
“We’re also seeing more 4-star hotels being booked on ZUJI this year, as compared to last year which had an almost even split of both 4 and 5-stars bookings. This could possibly be due to Singapore travellers being more budget conscious,” said Ms Chua Hui Wan, CEO of ZUJI Singapore.
Questions & Answers
Q.What is the primary reason retailers in Chinatown believe their sales of Chinese New Year goodies have slowed this year?
What is the primary reason retailers in Chinatown believe their sales of Chinese New Year goodies have slowed this year?
Retailers suspect the downturn is primarily due to the economy, citing concerns about retrenchments and a general poorer economic climate. Some customers are cutting down quantities to save money, indicating budget consciousness.
Q.Which businesses outside Chinatown appear to be performing better during the Chinese New Year period?
Which businesses outside Chinatown appear to be performing better during the Chinese New Year period?
Restaurant groups like Paradise Group anticipate high bookings for the first day of Chinese New Year. Hotel Fort Canning expects to sell out, catering to both foreign visitors and local staycationers, indicating stronger demand in these sectors.
Q.How have online travel agency bookings changed during this Chinese New Year period compared to last year?
How have online travel agency bookings changed during this Chinese New Year period compared to last year?
ZUJI has recorded a 17 per cent year-on-year increase in staycation hotel bookings. There is also a shift towards booking 4-star hotels this year, suggesting Singaporean travellers are more budget conscious.
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