A surplus of shop space and not enough shoppers — these pinpoint the crux of the problem faced by downtown malls as the local retail scene slides into a slump. First, the vacancy rates in Orchard area malls hit a five-year high. Now, it seems the Marina Bay area is also struggling.
Even Suntec City, which recently underwent a $410 million revamp over three years, has vast amounts of space but not enough tenants to fill them all. Some sections in the mall are almost empty, what with numerous tenants coming and going at an alarming rate — some close down mere months after opening up shop.
Next time you head over to town for a shopping spree, look out for boarded up spaces and signs bearing vague promises like ‘a new shopping experience awaits’. You might be surprised to discover there are more than you think. Only a couple announce the actual names of the brands arriving, such as Mando-pop singer Jay Chou’s streetwear label Phantaci at Orchard Gateway and lingerie brand Victoria’s Secret at Mandarin Gallery.
It all points to a mix of factors, including prudent consumer spending habits, dwindling sales and increasing operation costs, reported The Straits Times. Plus, when heartland malls up their game with the entry of popular brands like Uniqlo and H&M, there’s really no reason for shoppers to make the trek to Orchard or Marina Bay when they’ve got everything they need just next door.
While landlords seem to be helping out with various methods like lowering rentals and offering tenants pop-up booths with better visibility, it looks like things may not be looking up for these central-area malls anytime soon.
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