X’mas comes early for retailers

Source : Business Times – 19 Dec 2009

Sales gather pace in sharp turnaround from last year; newer malls on Orchard Road attract plenty of customers

RETAILERS are upbeat that sales will continue to gather momentum into the holiday season, in tandem with the recovering economy.

‘Early communications from our retailers indicate that this shall be a much better Christmas than the previous year,’ said Michael Kenderes, project development director for Lend Lease which owns 313@somerset.

According to Mr Kenderes, consumers are snapping up electronic devices such as computers, televisions and computer games as well as Apple products like the iPhone.

Over at Tangs, sales have also been improving. ‘So far, we’ve seen a double-digit increase over last year,’ said Lin Pei Hua, its assistant vice-president of marketing and communications.

For Tangs, beauty and fragrance sets, shoes and costume jewellery as well as big-ticket items such as Nespresso coffee machines are proving popular this season. Ms Lin expects sales to continue to flourish for the rest of the festive year-end season, given that the economy is on the road to recovery.

Meanwhile, Elim Chew, founder of the 77th Street chain of stores, remains cautiously optimistic as sales for the store at Ion Orchard are ‘promising’.

‘Sales are indeed picking up, albeit slower than expected,’ she revealed, adding that the company has been rolling out promotions to attract customers. ‘If the economy improves, then the retail industry should march in tempo too.’

However, with economic recovery only surfacing in the latter half of this year, the total annual sales for 2009 are unlikely to beat the previous year, reckoned Lau Chuen Wei, executive director of the Singapore Retailers Association (SRA). ‘Retailers are keeping their fingers crossed that the year-end shopping will close the gap somewhat,’ she added.

The new kids on the block such as Ion Orchard and 313@somerset have also raised the competition level up a notch with new-to-market brands and novelty value.

‘The newer malls on Orchard Road appear to be drawing in the crowds, as they offer newer brands in newer environments. Those in the older malls have seen footfalls suffer because of this,’ observed Ms Lau.

According to Mr Kenderes, 313@somerset – which opened fully leased a few weeks ago just in time for the holiday season – sees an average of 100,000 customers per day.

And while Christmas is still a week away, retailers are already planning ahead for next year. Visitor arrivals are expected to pick up in line with the recovering global economy, which will mean an increase in the tourist dollar for retailers.

‘We will have a post-Christmas sale, followed by new merchandise for Chinese New Year,’ said Ms Lin.

313@somerset also plans to target sales by focusing on Chinese New Year after Christmas.