Global brands troop to Singapore while local retailers suffer

Will small shops die out soon?

A horde of new global brands flooded Singapore’s malls in the first nine months of the year, while smaller retailers suffered in the background thanks to declining tourist spending and the ongoing manpower crunch.

According to Collier’s International, among the new brands which set up shop here is Tokyu Hands Inc., a Japanese lifestyle store known for quirky homeware products and do-it-yourself items which opened a 7,500 sq ft store at Westgate in Jurong East in September.

American sports brand Under Armour also expanded its footprint in Singapore, opening its second and third stand-alone stores at Collyer Quay and Tampines 1 in August. In addition, in August, heritage brand Church’s opened a 1,001-sq ft boutique at The Shoppes at Marina Bay Sands. 

Another new retailer is Dutch label Suitsupply, which opened its first store in Singapore towards the end of September. This store spans 5,500 sq ft and is located at Ion Orchard.

The country’s retail industry remains extremely challenging due to declining tourist spending, tight hiring conditions and increasing operational costs.

“These difficulties are inherently more acute for smaller brands, and these would be among the first casualties to exit the retail industry. The larger international brands such as the fast-fashion houses of Uniqlo and H&M would be able to weather the pervasive problems in the retail sector better. Given the Darwinian survival-of-the fittest nature of the current retail sector, shopping malls might evolve to be primarily occupied and dominated by the stronger and larger brands,” Colliers noted.