Saturday, November 7, 2009

Malls get bigger


Source : Straits Times – 7 Nov 2009

Snazzy new city malls such as Ion Orchard and Orchard Central may be in the limelight, but a quiet shopping revolution is taking place among the older malls, too.

From Yishun in the north to Jurong in the west, older local malls are creating new space to ‘floor’ spoilt-for-choice shoppers with fresh retail experiences in their own neighbourhood.

These malls together have spent hundreds of millions of dollars by either adding new extensions, reconfiguring their interiors or carving out new retail space from carparks and empty land.

The result is happy shoppers.

Take long-time Yishun resident Tan Bee Leng. Her shopping and dining in her neighbourhood has just got a little more exciting.

Over the last 10 years, the 36-year-old housewife had to make do with the 91 shops at Yishun’s sole mall, Northpoint. But since late last year, her shopping options expanded with the opening of the mall’s new wing, bringing the total number to more than 160 shops.

The new wing offers another 85,000 sq ft of retail space over six storeys. It was built for $38.6 million by mall developer Frasers Centrepoint on what was previously vacant land.

Mrs Wendy Low, general manager of Frasers Centrepoint Malls, says the enhancement works give the mall a ‘refreshed look, to infuse new life and vibrancy’.

For Mrs Tan, it means she no longer needs to head to town to shop: ‘I can find everything I need here.’

Over at Parkway Parade in Singapore’s east, a new two-storey annex opened last month. Part of a $15-million revamp, the 22,000 sq ft annex connects to the mall on levels one and two. It has 16 new and returning outlets, half of which are food and beverage (F&B) ones, including Chinese restaurant Putien, dessert cafe Toby’s Dessert Asylum and fast food restaurant Carl’s Junior.

The space was constructed by converting some of the former outdoor eating areas.

Parkway Parade centre manager Jenny Khoo says the new annex is part of a ‘continual renewal process to refresh and reinvigorate the mall to cater to shoppers’ ever-changing tastes’.

She adds, somewhat unsurprisingly: ‘The introduction of a larger variety of restaurants and cafes aims to cater to Singaporeans’ love for food.’

Over in the west, Jurong Point is now Singapore’s largest suburban mall, thanks to a new 303,000 sq ft extension that was opened earlier this year.

Built on formerly empty land, it is part of a $720-million integrated project, which includes an air-conditioned bus interchange and a 610-unit condominium above the new wing.

There is a big reason driving the trend for suburban malls to get bigger or pack in more retail space – competition downtown.

Along the prime shopping belt of Orchard Road, the shopping experience has got a lot more shiny.

Paragon mall, owned by Singapore Press Holdings, recently completed a $45-million makeover, for example. It updated its building facade and increased retail space.

Construction works are still ongoing at the Gucci flagship store, which will have a duplex retail space but with a five-storey facade.

Down the road, The Centrepoint added a 58,000 sq ft wing in 2006, with more than 20 new stores.

Raffles City has also been increasing its retail space over the years. Its developer CapitaLand is spending $116 million to enhance the mall over three phases which will add over 60,000 sq ft of extra space for rent.

But is bigger also better?

Work began in 2007, with the addition of an ‘island podium’ block of shops in the atrium and the extension of its basement through the conversion of carpark lots.

In the second phase, the mall enlarged its outdoor refreshment area and added another outdoor restaurant.

With the completion of the two phases, its total retail space now stands at 402,000 sq ft.

The third phase includes creating retail space along the underground link of Basement Two to connect the upcoming Esplanade MRT station to City Hall MRT station. It is expected to be completed by late next year.

Over at other malls such as Liang Court, there has been no increase in retail space but it has spent $40million on revamping the interiors, such as adding escalators and improving the access to shops.

Ms Stephanie Ho, general manager of AsiaMalls Management, which manages Liang Court, says the move was ‘to increase the overall efficiency of layout, the number of shops and to improve shopper flow and visibility’.

And it has paid off. She says traffic has ‘more than doubled’ since its revamp last year. It also attracted tenants new to Singapore, such as Taiwanese restaurant Shin Yeh, steamboat restaurant Tanyoto and Saizeriya, a Japanese-Italian eatery.

Retail experts say making changes to a mall, whether internally or adding a new extension, is important for business.

Retail consultant Lynda Wee, who runs business consultancy Bootstrap, says ‘refurbishment allows a developer to ‘unlock’ non-selling space, convert to leasing space for tenants and add value to shoppers’.

Senior director of retail and lifestyle at property consultancy Savills Singapore, Ms Sulian TanWijaya, notes that the opening of Orchard Central and Ion Orchard this year ‘could put pressure on some older malls, which may have to work harder to retain existing tenants or find new ones’.

Still, she adds: ‘There can never be too much retail for avid shoppers.’

Ms Geraldine Cheong, corporate communications manager at property consultancy firm CB Richard Ellis, says: ‘It is important, especially for older malls, to refurbish to stay relevant to the ever-changing needs’ of retailers and consumers.

This was the case for Far East Organization’s West Coast Plaza, which underwent a $26-million refurbishment in 2007. Its 160,000 sq ft retail space did not change but it has new tenants such as Cold Storage and Popular bookstore.

The mall, previously known as Ginza Plaza, also underwent a name change.

Its chief operating officer for retail business, MrKelvin Ling, says the mall was built 18 years ago, and since then, the demographics of people living and working around it have changed.

There are now more schools and professionals working in the Science Parks and one-north area, as well as more private homes popping up.

The addition of new retail space excites shoppers such as secretary Mary Lee, 25, who lives in Bishan. ‘More retail space usually means more shops, which gives me more options,’ she says.

But for others, it is the details that matter more.

Tutor May Phan, 38, from Pasir Ris, says: ‘Rather than put in more shops, malls should put more cubicles in the restrooms. That would make my shopping experience better.’


NORTHPOINT

Where: 930 Yishun Avenue 2

What: This suburban mall may be 17 but looks better than ever.

Its new wing, which cost $38.6 million, adds another 85,000 sq ft of retail space spread over six storeys.

It gives shoppers more than 70 new shops and F&B outlets, including Japanese restaurant Ishi Mura.

Yishun Public Library, previously at Yishun Street 22, has also moved in.

RAFFLES CITY

Where: 252 North Bridge Road

What: The 22-year-old mall has undergone several revamps over the years. Its most recent was in 2007, when it spent $62 million on renovations, including a new ‘island podium’ of shops in the centre of the mall.

Before that, it had converted carpark space, a staff cafeteria and locker rooms into retail space in the basement.

By doing so, it now has 402,000 sq ft of retail space.

JURONG POINT

Where: 1 Jurong West Central 2

What: This neighbourhood mall added a 303,000 sq ft wing this year, which is part of an integrated project including a transport hub, at a cost of $720 million.

Now with about 750,000 sq ft of retail space, it is Singapore’s largest suburban mall.

It now has 450 tenants, twice its previous number. Those in the new wing include a 68,000 sq ft NTUC FairPrice megastore.

PARKWAY PARADE

Where: 80 Marine Parade Road

What: The 25-year-old mall’s latest look is a new two-storey annex built as part of its $15-million revamp. The 22,000 sq ft annex connects to the mall on levels one and two.

It has 16 new and returning retail and F&B outlets. New additions to the second storey include dessert cafe Toby’s Dessert Asylum and Chinese restaurant Putien.

LIANG COURT

Where: 177 River Valley Road

What: Completed last year, this 266,434 sq ft mall’s $40-million revamp reconfigured its interiors to provide easier access to shops.

Its old anchor tenant, Daimaru, closed in 2003. Its existing anchors are now supermarket Meidi-Ya and Books Kinokuniya.

There are also more food choices, such as Taiwanese eatery chain Shin Yeh, Streets Hong Kong Cafe and Japanese noodle bar Marutama Ra-men.

PARAGON

Where: 290 Orchard Road

What: The mall, which is owned by Singapore Press Holdings, recently completed a $45-million facelift, with a new contemporary facade and addition of three more floors of office and medical space, as well as new stores.

It now sports a three-dimensional facade with multiple pop-out glass panels and multi-faceted aluminium panels.

Five designer stores – Salvatore Ferragamo, Prada, Tod’s, Miu Miu and Gucci – will have double-storey duplexes.

The Gucci flagship store is now undergoing construction.

When completed next year, it will be a double-storey retail store but with a five-storey facade.


More revamps

THE HEEREN

This mall is undergoing a $20-million revamp in five phases. Work expected to be completed by year-end include three two-storey, column-like glass structures on the facade which will offer at least 3,500 sq ft of space for F&B outlets.

Also in the works is a three-storey, egg-shaped construction for a flagship retailer in the next few years, which will mark the final phase.

MANDARIN GALLERY

The Mandarin Gallery at the Meritus Mandarin Singapore is expected to reopen by year-end after a $200-million facelift. The revamp will increase its total gross floor area by 40 per cent. Retail space now occupies 190,000 sq ft.

The premier shopping mall will have a new 152m-long frontage featuring six flagship duplexes with floor-to-ceiling glass windows and housing five upscale international fashion brands such as Emporio Armani.

New brands include Milan-based apparel brand Henry Cotton’s, British eco shoe label Terra Plana, high-end Swiss watchmaker FP Journe and Y3, a street-chic collection by Japanese designer Yohji Yamamoto.

KNIGHTSBRIDGE

Named after London’s most fashionable address, Knightsbridge is a new four-storey retail podium that will be connected to the Park Hotel Orchard, previously known as the Crown Prince Hotel.

The hotel is undergoing an $80-million renovation and will be rebranded as Park Hotel group’s flagship property, Grand Park Orchard, when it reopens next year.

Knightsbridge will have double-storey facade frontages with about eight to 10 luxury-goods tenants in them. At 83,000 sq ft, it is nearly double the 44,325sq ft area available at the former hotel.

PALAIS RENAISSANCE

Last year, it added 3,500 sq ft on the secondstorey rooftop to house PS Cafe. Encouraged by that success, it is now in the midst of creating another 800 sq ft of space from an infrequently used entrance to the office lobby for a new shop that overlooks Orchard Road.


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