If you visit Plaza Singapura on level 3 at the new wing extension, you will see lots of empty shops. Now that 1st Market by Chef Wan is also closed, the whole stretch on the left side is all partitioned up.
Before you jump onto the bandwagon of press articles (and ya-lor ya-lor new media blog posts) pontificating its doom and gloom for retailers today - and the biggest reason is high rentals - let me ask you a few silly questions:
Dead spots (you got no weaknesses to improve?)
Have you looked at the old wing of Plaza Sing? Very crowded with lots of people huh? How about level 1 and 2 of the new wing? All tenanted. So what's with level 3?
One exits and another moves in (one happy; one sad)
At Harbour Front, our Howard Storage World was closed 2 years ago as the landlord would like to increase the rental by 20% when the lease expires. Guess what? Mothercare, our neighbouring store, expanded into our vacated spot and converted that location into a huge store for them!
If you are the landlord, was it "wrong" to increase the rental?
If you are Mothercare, would you be complaining on paying the increased rent for the new unit?
Bad developments (Who's the architect? Who's the developer?)
Visited Orchard Gateway anyone? How's the layout? Weird right?
This one even better! Come visit Alexandra Central Mall if you happen to visit IKEA Alexandra. It's just next door. You won't believe what you'll see at this Alexandra Central!!!
Only in China have I seen retail properties offered at "undeveloped" (毛坯) conditions... Is it any surprise this retail development is 1/2 empty?
If you are the retailers opposite Queensway Shopping Centre, would you be celebrating your dumb luck?
New kid on the block (must try harder to gain attention)
What's the difference between Mandarin Gallery with established players like Paragon, Ngee Ann City, Ion Orchard; etc?
Can you remember a special reason why you should make a visit there to Mandarin Gallery?
Would you allow a new colleague come and overtake your position in the company just like that?
They have to earn it right?
Competent retail property management (people matters)
Anyone remembers Bugis + before its present look? Who took over and turned it around?
Same for Chinatown Point. Have you stepped into the old configuration especially the round about wing? Now? Big difference right?
How about JCube at Jurong East? With newer and sexier new retail developments like Jems and Westgate Mall, did JCube roll-over and blame the economy? Or did the property management did a great job reinventing and repositioning JCube?
You are not the centre of the universe (entitlement thinking be gone!)
Far East Shopping Centre holds a special place in my memory. My first retail job was at Metro Orchard (present day DFS) opposite. I see the press and some websites jumping the gun on its current "decline"...
Well, isn't it typical? As if people and competence don't matter.
Just because we open a retail shop, or develop a retail property, it does not mean we are "entitled" to succeed.
While we may have our SMART goals and "what can go wrong?" plans to succeed, others have their counter-plans to make sure we don't succeed. This is called competition.
So yes, if a retail store shutters its doors, or a retail development fails to live up to its business plan, its so easy to blame it on the economy, internet buying, shift to suburban retailing, and so on.
How come you don't hear retailers saying, "I fxxked up?"
No. Orchard Road is not losing its buzz.
On the contrary, I find it a fabulous shopping experience! We can hold our own against Ginza of Tokyo and Paris' Champs Elysees.
Just as long we let the free market weeds out the poorly prepared and rewards the competent.
P.S. Some readers may realise, as much as I'm sharing my retailing viewpoints, I am also metaphorically writing on my investing and trading philosophies too...
Singapore Man of Leisure (welcome to my blog; just google it!)
