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Tag: Orchard Rd

  • Decathlon store replaces old Metro at Singapore’s Orchard Rd

    Decathlon store replaces old Metro at Singapore’s Orchard Rd

    Decathlon Singapore is opening a new experience store in Orchard Rd, the brand’s fifth experience store in the city.

    Located at the Centrepoint shopping mall, Decathlon Orchard spans two floors, occupying a 3200sqm area. The store will feature some 5000 products spanning more than 50 sports.

    In the new Decathlon Singapore experience store, customers will be able to test products before purchasing with in-store “innovative solutions”. According to the company, the store will feature several interactive concepts including virtual reality test zones and free sport events

    Based on the photos the brand has shared on their social media channels, the fit-out process is still underway, but the store is scheduled to open on September 12.

    The new Decathlon store location takes up space previously leased to the Metro department store.

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  • Opening delay for Apple Store Singapore

    Opening delay for Apple Store Singapore

    Apple Store Singapore is not likely to open in time for Christmas, according to an updated information board outside its site in Orchard Road.

    Outside Knightsbridge mall, the sign now shows an expected completion date of January 30 – a three-month delay.
    No reason has been offered for the delay with Singapore’s first Apple Store, and the mall’s facade is still covered by white construction hoarding and canvas.

    Tall glass structures were already in place at the construction site in July, most likely for Apple’s signature glass facade for its flagship stores.

    Work on the store started in May, and it could potentially span four floors.

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  • Singapore retail rent decline worsens

    Singapore retail rent decline worsens

    The Singapore retail rent decline gathered pace in the last quarter according to data from Edmund Tie & Company.

    In the second quarter, retail rents across the board fell by 3.9 per cent quarter-quarter.  That was double the 1.9 per cent decline of the preceding quarter.

    Amid weaker demand, occupancy levels also dipped, falling by 0.5 percentage points quarter-on-quarter to 92.2 per cent.

    “In light of declining rents, several established retailers have taken – or are taking – advantage of the lower rents to reinforce their brand presence in Singapore through flagship stores,” the company’s quarterly review said.

    These include:

    • Choo Yilin at Mandarin Gallery.
    • HP at Marina Square.
    • Christian Dada at 268 Orchard.
    • Victoria’s Secret at Mandarin Gallery.
    • Uniqlo at Orchard Central.
    • Michael Kors at Mandarin Gallery.

    victoria secret

    “As the sector undergoes bouts of restructuring, retailers are also constantly reinventing themselves to reach out to the rising number of technological-savvy consumers. This includes the recent launch of digital wallets (eg: Apple Pay, Samsung Pay, Android Pay) which a string of established retailers have adopted, including Starbucks, Uniqlo, NTUC FairPrice and Cold Storage.”

    Headquartered in Singapore and supported by offices in Kuala Lumpur and Bangkok, Edmund Tie & Company is an established real-estate consulting firm that operates across Malaysia, Thailand and other countries in Southeast Asia.

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  • Epicentre Asia raises cash for expansion

    Epicentre Asia raises cash for expansion

    Apple products retailer Epicentre Asia plans to raise S$11.45 million (US$8.44 million) by issuing 45.8 million private shares to new buyers.

    KGI Fraser Securities is the placement agent for the issue, with the price being not be less than 25 cents per new share. These placement shares represent 49.1 per cent of the current
    share capital of Epicentre.

    Epicentre has five stores in Singapore, including two on Orchard Rd which could be expected to take a big hit in turnover terms when Singapore’s first Apple Store opens later this year. It has six stores in Malaysia and also sells online.

    Half of the net proceeds raised by the share issue will be used to support business development and provide liquidity for expansion. The rest will be deployed for general working capital purposes, the company says.

    Earlier this year, Epicentre raised $1 million on debt crowd-finance platform MoolahSense, and the company says this debt will be repaid through the sale of merchandise.

  • Singapore retail now ‘a tenant’s market’

    Singapore retail now ‘a tenant’s market’

    Singapore retail is now “a tenant’s market”, realtors warn in the wake of official data showing further decline in boath rental rates and occupancy levels.

    According to URA data out today (April 22), retail rents fell by 1.9 per cent in the first quarter of 2016, following a full year decline of 4.1 per cent in 2015. That’s the fifth consecutive quarter in which a decline has been recorded, and the latest figure is higher than the 1.3 per cent of the preceding three months.

    For retail space in the Central Area (which includes the Downtown Core, Orchard and Rest of Central Area), the rental index was down 2.1 per cent quarter-on-quarter.

    Occupancy rates also dipped, falling by 0.1 percentage point quarter-on-quarter to 92.7 per cent in the three months to March 31.

    In the Central Region, vacancies were up at a five-year high of 8.7 per cent by March 31, up from 8 per cent at the end of December. In the key orchard Planning Area, the occupancy rate dropped by 1.2-percentage points quarter-on-quarter to a five-year high of 8.8 per cent.

    “With a subdued retail landscape, landlords are placing greater emphasis on maintaining occupancy levels, more so than maintaining rental values in this challenging period,” commented Lee Na Jia, regional head of research with DTZ.

    “Should landlords be inflexible during rental negotiations, tenants can go elsewhere especially with the relatively large pipeline supply coming on-stream [215,000 sqm of GFA in the middle six months of 2016]. At this moment in time, it can be considered a tenant’s market as they will have more choices,” said Lee.

    “Moreover, declining retail sales, competition from eCommerce and rising operating costs also work against brick-and-mortar retailers. If businesses underperform, they exit the market.”

    Retailers who have recently announced their withdrawal from Singapore include Smoothie King, fashion chain New Look and furniture store Iwannagohome.

    Anthea To, senior associate director of research and advisory with Colliers International, said the continued easing of retail rents is unsurprising, as leasing momentum slowed and vacancies rose.

    “By and large, retailers remained cautious on their real estate requirements in the first quarter of 2016, amid growing economic uncertainties.”

    She noted a 32.4 per cent drop in the number of leasing deals being struck in the last quarter, according to details sourced from URA Realis – to 1725 transactions. That’s the lowest quarterly number since the second three months of 2012.

    Bleak outlook

    Anthea To fears the current economic headwinds might continue to erode consumer confidence in turn leading to a further reduction in discretionary spending in the city state as shoppers fear pay cuts or job losses.

    “Given retailers’ expected cost-conscious stance, landlords would also be more realistic on rental expectations for the rest of 2016. This would weigh down on retail rents in the coming quarters.”

    To expects retailers to respond to the depressed retail market with store network consolidation, greater focuses on eCommerce and customer engagement in-store, and new products, trying to keep their brick-and-mortar stores relevant to an increasingly digital-savvy market.

    “However, not all retailers are focusing on the digital world. Major retail brands are still committed in physical store expansion which allows them to offer more products, services and new shopping experiences under one roof,” said To.

    “While rents in the Central Area are on a downward trend and are under pressure to fall further, some brands are taking the opportunity to optimise their store portfolios and open new flagship stores to strengthen their branding.”

    Colliers expects retail demand will continue to be coming from international lifestyle and fashion brands showing strong interest for flagship and new concept stores, and local players in sectors such as health and beauty, as well as leisure and personal goods.

    Lee Na Jia concluded that Singapore landlords recognise the current market challenges and are more inclined to lowering rental reversion rates to retain tenants. Older malls are also constantly undergoing rejuvenation (such as changing their tenant mix and external facades) to keep up with competition from the new malls.

  • An Investor’s Guide: The Owners of Orchard Road

    An Investor’s Guide: The Owners of Orchard Road

    Have you walked down our Garden City’s famous shopping belt, Orchard Road, recently?

    I was not expecting to see the sheer number of people I did on Orchard Road when I was there recently. The amount of foot-traffic on this famous road seems to move only in one direction year after year – up.

    Imagine that you are a landlord on one of the properties on Orchard Road. Wouldn’t you feel happy just by standing on the roadside and watching the crowd walk by with their handfuls of shopping bags?

    Ho ho ho…

    As it turns out, we can indeed own many of the properties on Orchard Road, albeit indirectly. There are numerous properties in the shopping belt that are owned by companies or by real estate investment trusts that are listed in Singapore.

    If you are interested in the properties on Orchard Road, here is a quick guide on how you can get exposure to some of them:

    1-5) ION Orchard, Wisma Atria, Ngee Ann City, Mandarin Gallery, Mandarin Orchard Singapore 

    6) The Centrepoint

    One of the oldest shopping malls on Orchard road, The Centrepoint has been open since 1983. The shopping mall is owned by real estate outfit Frasers Centrepoint Limited. Valued at S$646 million on its balance sheet, Frasers Centrepoint counts The Centrepoint as one of the most valuable properties in its portfolio.

    7) Paragon

    One of the most upscale properties on Orchard road, Paragon consists of nearly 490,000 square feet of retail space and 230,000 sqft of medical suites and offices. Paragon, which is most recently valued at S$2.6 billion, is part of newspaper publisher Singapore Press Holdings Limited’s real estate portfolio. The company is the majority owner and manager of the retail-focused real estate investment trust SPH REIT, which in turn owns and manages Paragon.

    8) Wheelock Place

    Wheelock Place, a S$915 million seven-storey retail mall and 16-storey office tower, is seated at the edge of Orchard road. The property, which is owned by Wheelock Properties (Singapore) Ltd, had enjoyed close to 100% occupancy as of 2014 and is a very important piece of real estate for the company.

    Summary

    Feeling impressed by any of the buildings you come across while shopping along Orchard Road? Who knows, you just might be able to share in the economic benefits of some of them.

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  • F&B underpinning demand for Singapore retail space

    F&B underpinning demand for Singapore retail space

    Food and beverage has overtaken fashion as the primary driver of demand for retail real estate in Singapore.

    In its Third Quarter Retail Index covering Asia-Pacific, property company Jones Lang LaSalle says that despite declining retail sales and consumer spending, the prime retail sector remained in good shape during the third quarter.

    “Notwithstanding the overall challenging retail environment, Singapore’s most popular prime shopping destinations continued to demonstrate resilient performance, with malls such as Ngee Ann City, Paragon and Ion Orchard maintaining full occupancy,” the report concluded.

    “F&B has overtaken fashion retailers as the top demand driver.”

    Orchard Rd is ranked fifth most expensive in Asia for High Street net face rents with a figure of US$4106 per square metre per annum. That’s a fraction of the $19,476 of top placed Russell St in Hong Kong, and behind Shanghai’s West Nanjing Rd at $5473.

    But on a quarterly basis, the average shopping centre rent in Orchard Rd and District 9 fell by 0.4 per cent quarter on quarter, and by 0.7 per cent year on year. It was the only city of 18 measured by JLL to record a reduction, despite the highly publicised downturn in Hong Kong retail rents. (This is largely due to that comparison measuring shopping centre rental rates which have to date remained relatively unaffected in Hong Kong’s turmoil).

    JLL predicts “further rental correction” in Singapore amid subdued occupier demand “as labour market challenges and weak consumer sentiment prevail in the near term”.

    The report said that despite leasing support from new market entrants into the city, expansion of existing retailers has slowed and some have cut back their store networks.

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  • Cafe concept a huge boost for Muji Singapore

    Cafe concept a huge boost for Muji Singapore

    The recently opened cafe inside the Muji Singapore store on Orchard Rd has had a huge impact on the store’s overall trading.

    In an extensive feature written by the Straits Times and published online by Asia One, which details the trend of merging dining with traditional retail offers, Muji Singapore GM Jasmine Sng has revealed the store’s sales have increased 40 per cent since the cafe began trading.

    “Customer traffic has increased. The cafe draws customers to the store and, after a meal, they usually shop at the retail section too.”

    The 122 sqm Muji cafe opened in early September as part of an expansion and renovation of the Japanese lifestyle department store in the Paragon shopping centre.

    The brand operates its Cafe&Meal dining concept in 23 stores in Japan as well as in Chengdu, Taiwan and Hong Kong.

    The Cafe&Meal concept is described as “minimalist chic” (much like a lot of Muji’ anti-brand product range) featuring simple natural wood furniture in a plain, modern backdrop fitout.

    The menu will feature Japanese deli-style foods using locally-sourced ingredients, with a broad range of desserts.

    Customer Diana Low, 35, who visits a Muji outlet at least once every two weeks, told the Straits Timesthat Cafe&Meal has created a better shopping experience at Muji.

    “It completes the lifestyle concept of Muji and makes me want to linger longer in the store and spend more,” she said.

    Muji is just one of a growing number of stores adding a food and beverage offer to their retail space to enhance dwell time, broaden their product offer and to provide an in-store experience which cannot be replicated online.

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  • Starhill Global REIT boosts revenue

    Starhill Global REIT boosts revenue

    Singapore based Starhill Global REIT has posted a 16.8 per cent increase in revenue in the first quarter, to September 30.

    YTL Starhill Global REIT Management, the manager of the trust, says revenue rose to S$56.8 million and net property income rose 10.2 per cent to $43.6 million. The growth was mainly driven by the full-quarter contribution from the recently-acquired Myer Centre in Adelaide, Australia, and the performance of its Singapore portfolio, partially offset by lower contributions from China and foreign currency movements.

    Starhill Global’s Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City on Orchard Rd, contributed 60.1 per cent of total revenue, or $34.1 million during the quarter, led by positive rental reversions achieved in previous quarters, partially offset by higher operating expenses.

    The Singapore retail portfolio recorded negative rental reversions of 7.3 per cent for leases committed during the quarter to accommodate new retail concepts, but these accounted for less than three per cent of the revenue, excluding the Toshin master lease at Ngee Ann City Retail.

    Wisma Atria Retail revenue increased 7.7 per cent. Tenant sales at Wisma Atria rose 1.1 per cent year on year, mainly due to contributions from tenants which have recently started their operations at the mall. However, shopper traffic was down 9.7 per cent, as the strata area owned by Isetan remained closed for its renovations.

    Isetan’s new tenant in the basement level, Mango, opened in September 2015.

    The trust’s Australia portfolio, comprising Myer Centre Adelaide and the David Jones Building and adjoining Plaza Arcade in Perth, Western Australia, achieved a net property income of S$8.6 million, 113.2 per cent higher than the previous corresponding period mainly due to the full-quarter contribution from the recently acquired Myer Centre Adelaide, but partially offset by depreciation of the Australian dollar against the Singapore dollar and lower occupancies at David Jones Building. The trust is in negotiations with tenants over redevelopment plans at Plaza Arcade to accommodate anchor tenants and optimise upper-storey space.

    The trust’s Malaysia portfolio, comprising Starhill Gallery and interest in Lot 10 along Bukit Bintang in Kuala Lumpur, contributed 11.5 per cent of total revenue, or S$6.5 million in the quarter.

    NPI was approximately S$6.3 million, down 16 per cent on the previous corresponding period, mainly due to depreciation of the Malaysian ringgit against the Singapore dollar and reversal of excess provision of property taxes in the previous corresponding period following the revision in property tax assessment.

    Renhe Spring Zongbei in Chengdu, China, contributed 3.4 per cent of total revenue, or S$1.9 million and its NPI was S900,00, a decline of 27.5 per cent.

    “The decline was largely attributed to lower revenue as the high-end luxury retail segment continues to be impacted by the austerity measures the central government has put in place, as well as increasing challenges and competition from new and upcoming malls in the city,” said YTL Starhill Global REIT Management in a statement.

    The Japan portfolio, which comprises five properties located in central Tokyo, contributed two per cent of total revenue and achieved NPI of $900,000, 11.5 per cent higher than in the previous corresponding period, largely attributable to higher occupancies and lower operating expenses, partially offset by depreciation of the Japanese yen against the Singapore dollar.

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  • Buro 24/7 pops up in Singapore

    Buro 24/7 pops up in Singapore

    Buro 24/7 has popped up in Scotts Square…. for six months.

    The Buro 24/7 Singapore pop up store is the second in the city for the international brand, opening five months after an earlier one at Clifford Pier.

    Whether a store with a life span of six months qualifies for being termed a ‘pop up’ might be a moot point for some, but Inside Retail Singapore is prepared to accept the brand’s own definition!

    Buro 24/7 Singapore is essentially a news website promising “unparalleled coverage and access to the world of fashion and contemporary culture told through an Asian lens”. It has a contemporary feel, heavily influenced by the needs of the modern social media driven generation and a concept with similarities to the successful Monocle concept which also merges publishing with curated product collections, retail stores and pop ups.

    Founded by ‘style maven and digital powerhouse Miroslava Duma’, Singapore was the first country in Asia to join the Buro 24/7 family and the eighth edition of the site internationally, which now numbers 10. The others are in Russia, Croatia, Ukraine, Kazakhstan, Azerbaijan, Middle East, Australia, Malaysia and Mongolia.

    Buro 27/7 describes its new pop up as “a retail space, office and production studio” right in the heart of Orchard Rd.

    “For the next six months, our pop up store will couple online content with retail exposure and play host to upcoming designers, private previews, as well as photo shoots and workshops.”

    The concept is currently hosting a Boss fashion installation, featuring Boss Womenswear outfits as featured in a Buro 24/7 photo shoot with Anita Kapoor.

    Guests at the recent opening party were given a $50 Boss voucher when they took an Instagram photo with the BossS Bespoke bag and tagged it with #BuroLovesBoss.

    The Buro 24/7 pop up store is open daily from 10am to 10pm.

  • European cosmetics chain heads to Asia

    European cosmetics chain heads to Asia

    European cosmetics brand Stenders is about to open its first store in Singapore as part of a concerted push into new international markets.

    Stenders Singapore will open in Plaza Singapura shopping centre on Orchard Rd this month.

    Stenders Singapore 1

    The opening will be followed in November by debuts in Vietnam and Portugal and London is also on its radar..

    Stenders Singapore 2

    Stenders “a cosmetics brand inspired by northern nature” sells a range of about 350 products from more than 230 shops in 22 countries. In Asia it has so far only reached China and Japan.

    The Latvian-founded company’s market positioning is “high quality products and special packaging” sold from attractively designed stores where the staff have a strong service culture. “We pay special attention to feelings and shopping experience, including design, fragrance, the way of presenting products and customer care culture,” the company says.

    The brand’s product range includes bath, body, face and hair care products.

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  • MANGO opens its largest store in Asia at Wisma Atria shopping centre in Singapore

    MANGO opens its largest store in Asia at Wisma Atria shopping centre in Singapore

    MANGO has opened its largest store in Singapore. The capital of Singapore is the location for the store which, with over 1,200m2 distributed on a single floor, becomes the company’s largest store in the region.

    The store, located in the busy Wisma Atria shopping centre, stocks the firm’s different brands (MANGO, MANGO Man and MANGO Kids) and represents the fifteenth MANGO store in Singapore since it arrived in the capital in 1995.

    Toni Batlló, MANGO’s Director of International Expansion, declared: This opening represents a challenge for the company and a commitment towards the Asian market. The new store also strengthens our brand image in the country and consolidates the firm’s different brands. This is a market with plenty of potential and the new flagship store confirms MANGO’s commitment to continue growing and to extending our expansion plan.

    MANGO opened its first store on Barcelona’s Passeig de Gràcia in 1984, and now has over 2,700 stores in 108 countries. MANGO closed the 2014 financial year with a Consolidated Group turnover for the MANGO-MNG Holding of 2.017 billion euros, representing a 9% increase on 2013, and an EBITDA of 223 million euros.

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  • Coach Singapore opens next gen store

    Coach Singapore opens next gen store

    Coach Singapore has unveiled its new generation store on Orchard Rd in the Wisma Atria shopping centre.

    The New York-headquartered brand describes the new store format as its “next generation retail concept”.

    So important is the new outlet to the brand, South Korean superstar Jay Park was flown in to preside over the launch party.

    Coach Wisma Atria Singapore

    The store, a refurbishment, features the full range of men’s and women’s lifestyle collections, and is the first by the brand to feature a counter providing complimentary personalisation services.

    “We are thrilled to unveil our modern luxury retail concept at the Coach Wisma Atria flagship store,” said Coach South East Asia and Oceania president Andrew Stanleick.

    Coach Wisma Atria 1

    “I believe the new incarnation of the Coach store that Stuart and William Sofield created will trigger a powerful change in the perception of Coach. It is sophisticated and refined, yet playful and authentic.”

    The new concept was developed by Coach executive creative director Stuart Vevers in cooperation with creative firm Studio Sofield. Coach says the design team sought to reinvent the Coach brand, drawing from a wide range of influences, placing a premium on contrasting textures and luxe materials.

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  • Bleak result for Isetan Singapore

    Bleak result for Isetan Singapore

    Japanese department store operator Isetan has reported mounting losses in Singapore as sales fall and rents rise.

    Group sales for the three months to June 30 were $71.467 million, a decrease of $10.819 million or 13.15 per cent over the same quarter a year ago. Isetan said the decrease was largely due to the closure of its Isetan Orchard store at the end of March to prepare the store space for subletting, and a slowdown in sales in all of its stores (except Isetan Jurong East) “due to an environment of slower economic growth and stiff competition amongst retailers”.

    In the second quarter the company incurred a loss after tax of $5.847 million, compared to a loss of $1.214 million in 2014.

    Higher rent at Isetan Scotts, affected both the store’s result and was the main reason for the overall increase in the rent outgoings.

    “At Isetan Orchard, the process of finding tenants and converting the space for renting out is ongoing,” the company said in a statement.

    “In this respect, there was no rental income from this store during Q2.”

    “At Isetan Jurong East, although the store is experiencing sales growth, it is not contributing to profits yet. The general slowdown in sales was also a drag on the results of the Group for Q2.”

    Its other stores are at Katong, Tampines and Serangoon Central.

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  • Singapore’s Orchard Rd hasn’t lost its gloss

    Singapore’s Orchard Rd hasn’t lost its gloss

    Orchard Road remains the top destination for shoppers during the recent Great Singapore Sale, according to a new report, debunking calls that Singapore’s prime shopping belt may be losing its shine.

    The premier retail strip attracted the highest footfall during the city-state’s annual shopping promotion, held from May 29 to June 28 this year, a new report by location intelligence company AdNear said. The study analyzed the foot traffic data from 192,000 respondents in six retail locations, including Bugis Junction, Marina Square, Novena Square, Orchard Road, Raffles City and Suntec City, for the month of June.

    “The busy shopping district [of Orchard Road] had almost 2.5 times more foot traffic, definitely in line with the fact that it has an array of malls [compared to] Suntec City, Raffles City and Bugis Junction,” the report said.

    Long regarded as one of Asia’s best shopping streets, Orchard Road has been struggling to keep up with a competitive retail environment brought about by a confluence of factors including fewer tourist arrivals from China andincreased competition from suburban malls and online retailers.

    Reflecting slowing sales at major department stores, average monthly gross rents of prime retail space on Orchard Road slipped 1 percent in the second quarter to a four-year low of $37.79 Singapore dollars per square foot, according to data provided by property consultancy Cushman and Wakefield.

    With its position as a top shopping destination at stake, events such as the Pedestrian Night where a section of Orchard Road goes car-free once a month, have been unveiled; while a $40 million worth of facelift is on the cards to rejuvenate Singapore’s premier shopping street.

    Who likes Orchard Road more?

    To be sure, shoppers are not ditching Orchard Road just yet.

    Among consumers surveyed, the tree-lined shopping belt is ranked among the top three retail locations for the affluent group, homemakers, professionals and travelers. Only the student category gave the shopping precinct a thumbs-down, ranking Orchard Road as the second least-preferred place for retail therapy.

    Orchard Road is also the go-to destination for females, but shunned by male shoppers who ranked it as the least desirable shopping destination. Interestingly, the top choice for male shoppers – Marina Square – was ranked last by female consumers.

    The report showed Sunday as the favorite day for a shopping spree among females, whilst the men favored a mid-week splurge, with footfall at its highest on Tuesdays. Despite the preference for different days, both genders like to shop between 5pm and 9pm.

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