Mall Owners Embrace Modern Retail Economy

FF Fashion

Oct 12, 2009
PropertyGuru.com.sg

The latest analyst survey of the Monetary Authority of Singapore (MAS) showed a positive sign for the Singapore economy in all its sectors, excluding hospitality and retail. The disappointing figures for retail were predicted to drop by 11.7 percent for Q3 compared to Q2. The figures were described to be substandard especially when compared to other sector’s upturn.

Nevertheless, the entire story of Singapore’s retailing segment is not solely reflected through its recent figures. Several mall owners are becoming more confident with their businesses, seeing recovery with more positive figures. Among the optimistic mall owners include Lend Lease Retail’s owned and managed business, the Parkway Parade. With 100 percent confirmed occupancy, 313@Somerset, its flagship development will soon be opened before the Christmas season.

Forecasts by MAS suggests that other retail malls are actually experiencing torment with their businesses, while some are projecting growth.

Like all other businesses that are capable of being sustained, the retail industry must now envision a long term strategy to sustain its growth. Singapore can turn into Asia’s undisputed shopping mecca if the retail industry can appropriately optimise the new infrastructure’s wealth, from integrated resorts up to new emerging malls.

Singapore hopes that by 2010, its goal to become the leading retail industry in Asia will already be realised. For the moment, Orchard Road is the number one retail asset of Singapore.

The retail industry of Singapore needs to recognise that a new retail economy is emerging around the country in order for it to set itself on top of the rest. Fundamentally, mall owner’s role has dramatically changed. The new retail economy has already been adopted by some developers and mall owners, and has changed their mentality of 'build it and they will come'.

Everything in retail needs to be considered and must work together to make its malls different, memorable and destinational. Such mandate has become more evident to Lend Lease, one of the leading integrated property solution providers all throughout the world. For over 30 years, it has created iconic malls that span throughout the globe.

However, the fundamental framework, which is about retailer mix and convenience, remains the same in terms of mall development and planning. To remain relevant in the coming future, retail has to be flexible, easy to use and easy to obtain. To warrant long-term sustainable returns and generate foot traffic, a strong retailer and appropriate market positioning are essential.

In the new retail economy, possessing ‘soft-skills’ is a new ingredient which can determine ones success. Soft skills entail creating experiences and building relationships.

Mall owners must offer more than a roof over the heads of retailers in order to survive the retailing activity in the new economy. It also requires collaboration, innovation, creativity as well as initiative – the quintessential essence that has ensured Singapore’s progress over the last four decades.