BHG to open new concept at Robinsons' former Raffles City space

Singapore

DEPARTMENT store operator BHG Singapore is taking over the first two floors of the space formerly occupied by Robinsons Singapore at Raffles City Shopping Centre.

Robinsons used to occupy three floors spanning roughly 85,000 square feet (sq ft) at Raffles City before it closed the store last weekend, exiting the retail scene for good after years of losses.

It also used to have a flagship store spanning six floors at The Heeren. But that space - all 186,000 sq ft of it - has since been taken up by Courts Singapore.

BHG's new store at Raffles City will open its doors to the public by the end of this month. It is said to be a new concept store called "ONE ASSEMBLY" and is a collaboration between BHG and Raffles City.

In a joint statement on Friday, BHG and Raffles City said that the concept store will offer "the ultimate selection of beauty, fashion, home and living, and experiential offerings". The store will also have two "experiential spa cabins" for shoppers to relax in.

"ONE ASSEMBLY will provide new experiences to shoppers and, combined with its prime location, we are confident that it will become a favoured destination for our shoppers," said Udai Kunzru, managing director at BHG Singapore.

Said Chris Chong, retail managing director at CapitaLand Singapore: "By joining hands to present ONE ASSEMBLY, we set out to enhance Raffles City's shopping experience with a plethora of offerings that are thoughtfully curated for this collaborative space, delighting shoppers each time they visit us."

BHG's new store comes as its peers have appeared to downsize or halt expansion in recent years. The company declined to comment on whether it is opening any more stores, or closing them, this year. It currently has five other stores in Singapore.

According to its latest financial records, BHG had swung into the red in 2019 with a loss after tax of S$2.28 million in 2019, from a profit after tax of S$554,291 in 2018.

Still, Mr Kunzru said in Friday's statement: "This new start in the beginning of 2021 also signals hope and optimism for a better future, after a tough 2020."

Observers of the retail industry said that BHG may have seen Robinsons' departure as an opportunity to strengthen its foothold in the scene.

Megan Ong, director of Nanyang Polytechnic's Singapore Institute of Retail Studies, pointed out that Raffles City will give BHG a "strategic location" to complement its current geographical reach.

All of BHG's current outlets are located in the heartlands.

In addition, the collaboration with Raffles City indicates some form of risk sharing with the landlord, which may have further motivated BHG, said Kapil Tuli, marketing professor at Singapore Management University's Lee Kong Chian School of Business.

Mr Tuli also noted that there may be "an element of deep pockets". BHG is owned by the Beijing Hualian Group, a Chinese retail conglomerate.

The group does not appear much in the press, but two of its companies are each listed on the Shanghai and Shenzhen stock exchanges, with each firm's market capitalisation in the billions of yuan.

In any case, Jimmy Quek, programme chair at Republic Polytechnic, said that BHG's department stores have their own appeal, having established a clientele which is "younger than that of Robinsons".

"It aims to become a destination store, aided very much by the increasing younger brands it carries, and has adopted technology for better in and out-of-store experiences," Mr Quek added.