An open letter to traditional Singapore retailers who’ve had enough

Photo credit: natsora / 123RF Stock Photo.

Dear Singapore retailers,

I feel your pain. I really do.

Since last year, the writing was already on the wall for retailers. Shopping malls are reportedly empty, the Great Singapore Sale didn’t feel so great, and vacant outlets have been growing.

While you’re probably familiar with the malaise in Orchard Road, the contagion isn’t just isolated to Singapore’s most famous shopping street. Neighborhood shopping malls have reported reductions in sales and increases in retail space vacancies. Even those running HDB (Singapore public housing) neighborhood shops have seen business drop.

The decline in retail traffic has had a knock-on effect on rental rates. While many of you have complained about sky-high rentals in Singapore, the truth is that rental rates have decreased significantly over the past couple of years.

Encroachment by ecommerce

Many of you have cited online shopping as a factor for your demise.

With one of the most highly connected populations in the world, we Singaporeans love our devices. Every person on this island owns two or three mobile phones and tablets on average.

Offering a seemingly endless selection of products, simple purchase processes, superior navigation, and exceptional service (often including a no-questions-asked goods return policy), online shopping seems unassailable. The unparalleled growth of the two multibillion-dollar giants—Amazon and Alibaba—attests to that.

That’s not all. You now have to contend with specialist online service providers like Deliveroo, Honest Bee, or RedMart that delivers anything from pizzas to pumpkins to your former customers.

Finicky young consumers

In case you haven’t noticed, your children (and children’s children) aren’t coming to your shops anymore.

As trailblazing trendsetters and innovators, the youth needs to keep updated with the latest happenings. They follow online YouTube and Instagram influencers who are wooed by the biggest fashion, electronics, and service brands.

You’ve probably noticed that youngsters aren’t even looking at their environment anymore. Their eyes are glued to the tiny screen in front of them, chatting with their friends on Whatsapp, “liking” Instagram videos and photos, and taking “snaps” of themselves. To them, shopping is tapping on a screen, not visiting a shop.

If you aren’t on social media, you are invisible to tomorrow’s customers.

Regional retailers are rocking it

Cookie cutter complexes

So what can you do?