As the outlook for Singapore’s retail sector becomes increasingly challenging with rising labour costs, weak domestic and tourist demand, as well as competition from e-commerce, retailers here are spinning out new strategies to lure shoppers back to the brick-and-mortar stores. Their latest weapon of choice: The flagship store.
The island-wide sprouting of such stores are the outcome of retailers’ multi-pronged strategies at play, analysts said. The move allows them to take advantage of falling rentals amid the economic slowdown to secure a large space in a high-footfall area while consolidating regional or local operations under one roof.
These sprawling flagship stores aim to strengthen brand awareness by curating offerings to enhance the consumer experience and showcasing wider and newer product spreads — all in one centralised location. Consumers are enticed to spend more time, perhaps even the entire day with their families, at these mega stores instead of malls where these retailers jostle for shopper’s attention amid a plethora of brands.
“Retailers are trying to play catch-up. So we see more of them creating experiences around shopping, making it more fun and interactive. Going ahead, such flagship stores will also help retailers consolidate and rationalize store network with a keen focus on productive outlets,” said Ms Christine Li, director of research at property consultancy Cushman & Wakefield.
About a dozen flagship stores have been announced or launched in the past six to nine months. In January, luxury Italian fashion house Valentino opened its largest boutique in Singapore with its 3,700-sq ft outlet at Marina Bay Sands. Japanese brand Muji, which has 10 outlets in Singapore, announced in March plans to open a new flagship store of about 35,500 sq ft here featuring lifestyle concepts.
By the end of the year, international lingerie brand Victoria’s Secret and American fashion company Michael Kors will open their first flagship stores in Singapore at Mandarin Gallery on Orchard Road after signing leases of 10 and seven years, respectively. Amid a sluggish retail landscape, mall owners are re-looking their leasing strategies and throwing in incentives, such as extending the rent-free settling-in period and lowering rentals on longer leases. In some cases, these are as long as five times the standard three-year duration.
Luxury multi-brand footwear and accessories retailer Pedder Group opened its 20,000 sq ft Pedder on Scotts store in Scotts Square at Orchard Road last October. The concept store is the Hong Kong-based retailer’s biggest standalone outlet in Asia. Pedder on Scotts also introduced a 3,000 sq ft café run by Hong Kong’s The Coffee Academics. The 70-seat café serves coffee and brunch and also features a custom-blend bar and a training area with coffee classes.
Among recent new entrants to Singapore’s retail scene are Maje, a popular French womenswear label that opened its first flagship store here last October at Marina Bay Sands. Meanwhile, Japan’s Bao Bao Issey Miyake and Latvian beauty brand Stenders unveiled their flagship stores at ION Orchard and Plaza Singapura, respectively.
(Source: Today Online )