CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Retail Sector Looks to E-retailers and Athleisure to Drive Leasing Demand in 2021

14/10/2020
The Covid-19 pandemic has driven the prominence of online shopping and led to companies adopting or exploring flexible work arrangements. As such, we see e-retailers and athleisure brands to be significant in driving future retail demand. Amongst the malls that are due to be completed next year are Shaw Plaza (62,700 sf), One Holland Village (76,500 sf), 112 Katong (180,700 sf), all suburban malls

E-retailers who have thrived in the uptick in e-commerce may pursue a “clicks to bricks” strategy and take advantage of declining rents to open a physical store to gain more sales and brand recognition. For example, online fashion retailer, Love, Bonito opened their fourth store at Vivocity, occupying 4,300 sf. The athleisure trend is booming, driven by broad shifts in the choice of fashion as a result of flexible work arrangements and a greater focus on healthy and active living. Sportswear and Footwear retailer, Footlocker, has continued to expand and opened their sixth and largest store yet at Orchard Gateway @ Emerald, spanning 23,000 sf.

Christine Li, Head of Research, Singapore and Southeast Asia said “Footlocker’s opening of its sixth store sends a strong signal that international brands are still on the hunt for quality real estate in Singapore, underscoring the city-state’s value as a launch pad to other neighbouring markets.”

There is still scope for brands to adopt a more aggressive online strategy to wean off a heavy reliance on foot traffic in physical stores. The retail landscape is challenged by the prolonged absence of tourists and social distancing measures inducing a reduction in capacity so it is imperative that retailers sharpen their focus on an online strategy that might expand their customer base beyond Singapore, for instance.

Time Period   Proportion of online sales  
 2018   5.0% 
 2019  5.0% 
 Circuit Breaker Average   20.6% 
 Post-Circuit Breaker   11% 

Sources: Department of Statistics, Cushman & Wakefield Research 

Retail Sector Looks to E-retailers and Athleisure to Drive Leasing Demand in 2021
Sources: Department of Statistics, Cushman & Wakefield Research 

British fashion brands Topshop and Topman took the dive and closed their last Singapore outlet and shifted their business online and this might pave the way for others to follow suit.

Amidst weak economic conditions, prime retail rents fell across the board. Other City Areas ($20.25 psf/mo) and Orchard ($33,73 psf/mo) rents fell the most at 3.0 per cent and 2.9 per cent quarter-on-quarter respectively in Q3 2020, amidst the implementation of flexible working arrangements and on-going travel restrictions. Suburban prime rents ($30.85 psf/mo) were relatively more resilient and fell only 2.2 per cent from the previous quarter. Nonetheless, the spate of closures across the island will continue to put pressure on rent levels.

The retail operating conditions remain challenging, but first-tier malls have been able to hold on to their rental levels due to their high occupancy levels and ability to attract new tenants. On the other hand, weaker malls remain in distress.

Mark Lampard, Executive Director and Head of Singapore Commercial Leasing and Regional Tenant Representation said “The retail market is undergoing a dramatic transformation. In the short term, the easing of restrictions on people movement in Phase 3 is seen as a potential positive impact on retail sales, particularly at F&B outlets and other retail trades which had to stop operating abruptly because of the circuit breaker.

However in the longer term, the customer buying behaviour is likely to evolve with individuals seeking elements of both the online world such as instant product information, stock availability and product comparisons, and the real world where products and services are tried and tested before ultimately purchased.”

Click here to download the retail marketbeat report


Related Insights

apac-data-centre-UPDATE-landing-CrdImg.jpg
Research

APAC Data Centre Update: H1 2024

This report covers 8 primary and 4 secondary markets. It also features the Asia Pacific Data Centre Markets Maturity Index, which tracks 30 markets.
Vivek Dahiya • 29/08/2024
Reworking the office
Research • Workplace

REWORKING the Office Asia Pacific

Our ‘REWORKING’ series examines decision-making for occupiers under four key considerations: Cost, Carbon, Culture and Community – under which the changing demands, needs and impacts on office spaces and strategies can be examined.
Grant Carter • 03/11/2023
card image
Insights • Sustainability / ESG

Banking on Green Office Buildings in Singapore

Does sustainability pay? We think it does help performance.
Xian Yang Wong • 21/11/2022
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS