New business models can help raise revenue, ease fixed costs concerns

Singapore

BEYOND focusing on ways to reduce the high fixed costs related to the retail sector, businesses must also look at ways to improve their top line as the sector embarks on its challenging road to recovery.

"If we just depend on the traditional model where a retailer performs the role of a middleman . . . with high fixed costs, including rental, it will be very difficult for our retailers to survive and thrive," said Trade and Industry Minister Chan Chun Sing on Monday, in response to questions on how the government is supporting businesses on the rental front - a perennial pain point particularly for retailers and those in the F&B industry; and one which has been exacerbated by the pandemic.