Suburban malls can still thrive despite retail disruption from online shopping

Heartland malls win from remote working trend, but should not underestimate the value of community

Leslie Yee

Published Tue, Mar 16, 2021 · 05:50 AM

Retail

Singapore

RETAIL operators with physical outlets are struggling due to the relentless rise of online shopping both in Singapore and overseas.

Department store Robinsons closed its last outlet in Singapore early this year after 162 years of operations. Listed groups Isetan (Singapore) and Metro Holdings have reported losses on their retail businesses.

Retail landlords are hurting too, with retail rents falling nearly 15 per cent year-on-year in 2020, according to the Urban Redevelopment Authority (URA).

Vacancy rate of retail space in the fourth quarter of 2020 was 11.6 per cent in the Orchard area, 10.7 per cent in the Central Area outside Orchard and 7.5 per cent in the Outside Central Area.

Major plans were unveiled in 2019 by The Singapore Tourism Board, URA and National Parks Board to revamp Singapore's famed Orchard Road shopping belt and position it as a vibrant lifestyle destination that offers an exceptional experience beyond reta…