New fashion and lifestyle brands spur recovery in retail sector
With the arrival of new international retailers to the market in 3Q2023, occupancy rates in prime retail spaces in Orchard Road and other locations in the Central Region of Singapore have seen a boost. According to Cushman & Wakefield’s Wong Xian Yang, Singapore is being used as a springboard for regional expansion for many of these new fashion and lifestyle businesses.
Two of the most prominent examples of this phenomenon are Chinese activewear brand Neiwai, and Finnish clothing brand Marimekko, both of whom opened their first Southeast Asian stores in Singapore in July and September respectively. Additionally, French patisserie Cedric Grolet launched their first Asian outlet in Como Orchard in September.
And it’s not just fashion retailers; international doughnut chain Mister Donut opened their first Singapore store at Junction 8, while beverage brand Chaffic from Australia arrived at Westgate. Taiwan fried ice-cream chain Frozen Heart has opened their first overseas outlet at Jewel Changi, and Avocadoria, an avocado dessert chain from the Philippines, set up their first international franchise at Ang Mo Kio Hub.
The condo also has a pool, gym, and other leisure facilities, making this an ideal place to call home. Great World City Condo is a welcomed respite where you can unwind, relax, and recharge. It is also conveniently located near retail outlets and dining options. Truly, Great World City Condo is the perfect balance of convenience and comfort.
As a result of the retail market’s recovery, the URA retail rental index has seen positive growth for two consecutive quarters; a marginal increase of 0.5% q-o-q in 3Q2023 and 0.3% q-o-q in 2Q2023, according to Leonard Tay, Head of Research at Knight Frank Singapore. Furthermore, occupancy levels have surpassed the pre-pandemic level of 92.5%, recorded in 4Q2019, reaching 92.8% in 3Q2023.
Meanwhile, local lifestyle brands have capitalized on social media platforms to engage with their audience and attract shoppers. Notable examples include The Paper Bunny and Beyond The Vines, with their marketing campaigns generating viral responses from a digitally savvy demographic.
Looking ahead, retail landlords are expected to maintain their rental expectations in spite of rising operating costs; however, ongoing challenges such as manpower shortages and inflation have forced retailers to consolidate their spaces in 3Q2023.
Take-up of retail space on the whole has been quite weak, likely due to the difficult economic sentiments of the pandemic. Nonetheless, demand for retail spaces is expected to remain resilient, with the return of China’s outbound tourism and Singapore’s growing traveller confidence offering bright prospects for the sector.