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A survey conducted indicated over 81% of businesses experienced a sales drop of over 50% during the first day of Phase 2 (Heightened Alert), with 86% of retailers intending to let staff go or close their shops.
Retailers in Singapore are appealing for rental relief and financial support from the government as they expect the tighter COVID-19 restrictions under the Phase 2 (Heightened Alert) period, which runs from 16 May to 13 June, to affect their business significantly.
A survey conducted by retail tenants group Singapore Tenants United For Fairness showed that over 81% of businesses across retail, food and beverage (F&B), services and others saw their sales drop by over 50% during the first day of Phase 2 (Heightened Alert) versus the period beforehand, reported TODAY.
“We are still keeping our staff but do not think we can keep them for long if the situation remains like this,” said Alan Lee, Director of Klosh, which sells home decor, stationery, gifts and lifestyle products, as quoted by TODAY. Klosh has outlets at Compass One, Jurong Point and Jewel Changi Airport.
Joe Chen, Director of Frida, a ladies apparel retailer at Novena Square, said he does not know how long his business can survive if the rental waiver is not given.
More than ten retailers interviewed by TODAY from the Central Business District to the heartlands shared a similar bleak scenario as shops are now relatively empty.
Most retailers attributed the decreased walk-in traffic to the ban imposed by the government on dining in at F&B outlets.
Cel Oh, who runs a flower and gift shop within The Arcade at Collyer Quay, said her shop saw footfall plunge 80% to 90% compared to last Friday (14 May).
She noted that many F&B outlets “around the area have decided to just close after weighing the costs and benefits”, further reducing footfall in the mall.
“With the expected decline in revenue for the next three weeks and most retailers having yet to recover much from the last circuit breaker, it’s hard for us to fork out additional funds again to support the staff and pay off contractual fixed payments with no incoming revenue,” she told TODAY.
With this, many Singapore Retailers Association (SRA) members want the government to mandate the closure of retailers, said R Dhinakaran, President of SRA.
“I have spoken to some landlords and the Ministry of Trade and Industry (MTI) requesting them to consider to close like during the circuit breaker last time because when the restaurants are not open, when the situation is so bad, people are not going to visit the malls as much, they are not going to do shopping,” Dhinakaran told TODAY.
“The members are saying it is better to close so that we can get the full rental rebate and the government will provide assistance for paying salaries through the Job Support Scheme (JSS).”
TODAY noted that last year’s circuit breaker period saw the government enforce a mandatory closure of non-essential businesses. It also mandated landlords to provide rental waivers while offering wage subsidies via the JSS.
Meanwhile, several mall operators, such as CapitaLand and Mercatus, have already offered rental relief to their affected tenants.
“CapitaLand stands ready to tide over Phase 2 (heightened alert) by leveraging our holistic retail ecosystem to benefit shoppers, tenants and staff,” a CapitaLand spokesman told TODAY.
“For retailers whose operations are directly or indirectly impacted by the latest measures, we will provide them with assistance that includes rental rebates and operational support to continue online sales through our digital platforms.”
On the other hand, Mercatus said they would be reaching out to all their tenants who will be adversely affected “to provide them with the necessary rental, operational and marketing support to help them tide over this difficult time”.
A spokesman for UOL said the company would “remain committed to supporting our tenants in terms of rental, marketing and operational assistance”.
Frasers Property Retail also said it would provide rental and operational support “in a targeted manner for F&B tenants who are adversely affected”. However, it made no mention of any rental support for other businesses.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg
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