Usually, at this time of the year when Chinese New Year (CNY) is just around the corner, Ms Evelyn Ng, a shop assistant at a candy store, would be very busy at work. These days, however, business has been lukewarm — so much so that the shop will be moving out of 112 Katong in a few days.
“Look around — does it feel like it’s just days away from CNY?” said Ms Ng, pointing to the mall’s vacant atrium space, which, in better times, would be filled with vendors, especially during the festive period. “I am managing some S$200 worth of sales like I do on usual days,” she said.
The uncertainty plaguing the economy and the jobs market have dampened shoppers’ mood at malls in the run-up to CNY. Shops in several malls we visited over the past few days reported lower earnings compared with the same period in previous years, and atrium spaces were uncharacteristically empty.
A cashier at an international fashion store at 313@Somerset, who declined to be named, said that sales are “40 to 50 per cent” lower, compared with the CNY period in the past two years. “We now have two to three assistants per floor, compared with about six last year,” she said.
Mr Pushpendra Sharma, founder of SpacesGenie.com — an online retail spaces booking and listing platform — said demand for atrium space has been lacklustre amid the slump for brick and mortar retailers.
Singapore’s traditional retailers have been hit by a double whammy of an economic slowdown and the rise of e-commerce. But those who have adapted to the new landscape are faring better. For example, home decor retailer Crate and Barrel said its business this festive season had improved from the past year. “We are certainly responding to the trend of consumers going digital through our communication efforts,” said Mr Samuel Stephen Wright, brand manager at Crate and Barrel Singapore.
Some mall owners noted that the unusually short period this time — of about one month — between Christmas and CNY may have resulted in consumers cutting down their spending.
A City Square Mall spokesperson said the shopping centre has seen “healthy level of footfall and in-mall spending redemptions” during Christmas, which is expected to continue through CNY. Similarly, a Frasers Centrepoint Malls spokesperson said its promotions have been “well-received through Christmas, and we expect it to carry on into the CNY period”. “However, with such a short gap between the celebrations for the two festive periods, there is a higher tendency for shoppers to combine their spending.”
With the first two days of CNY falling on a weekend, mall managers expect a large number of shops and eateries to be open during the public holidays. Mall owners said there has been no let-up in promotional efforts to spur consumer spending. For example, at Northpoint in Yishun — which is owned by Frasers Centrepoint — there is an ongoing lucky draw promotion that runs until June 30. A lion dance performance and red packet giveaways, among other initiatives, are also on the cards.
Ms Ameerah Khairudin, 20, who works in the Orchard Road area, said there was “no point spending when it is so tough to find jobs”. She said: “We see so many people losing jobs. It worries me.” Retiree Gloria Leong, 68, noted that the malls are quieter. But with retailers desperate to drive up sales, she said: “I have not seen shops offering such hefty discounts during peak season before. Given the smaller crowd, we find it easier to shop around these days.” Rumi Hardasmalani