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Singapore saw 58 new retail brands in 2014, more that double the 24 brands that entered the market in the previous year, making it the second hottest retail market in the world, according to a report from CBRE.
In the report entitled ‘How Global is the Business of Retail?’, CBRE said “food and beverage operators were most active, followed by mid-market apparel and accessories like ladies fashion, footwear, handbags and sports goods.”
The study revealed that Orchard Road remains the most popular shopping destination despite the stiff competition from suburban malls, with the recently completed Shaw Centre and Orchard Gateway providing more space for further retail expansion.
Although many new brands have established a presence in the city-state last year, some retailers have consolidated their shops in 2H 2014 due to manpower shortages, weak retail sales growth and falling visitor arrivals, especially those coming from China.
However, the entry of new retail brands in Singapore is expected to slow down. Retailer networks could also shrink, while companies may spend a longer time to venture into the republic.
“Despite the high level of new entrants, the retail market continues to be challenging,” said Desmond Sim, Head of CBRE Research for Singapore and Southeast Asia. Nevertheless, small and big retailers are using Singapore as a testing ground for the larger Southeast Asian market, given its cosmopolitan consumer client base.
Meanwhile, Tokyo with 63 new retail brands was the world’s hottest city for new retailer expansion in 2014, followed by Singapore (58), Abu Dhabi (55) and Taipei (49), while Dubai and Hong Kong were tied at fifth place with 45 new retail brands each.
Completing the top ten are Moscow with 41 new retail brands, trailed by Paris (40), Beijing (34) and Doha with 30 new retail brands.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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