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Dying malls (why do some seem to do that?)

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JR8
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Dying malls (why do some seem to do that?)

Postby JR8 » Sat, 14 Mar 2015 1:08 pm

I was reading the 'Savills Singapore Press Digest 13 March 2015', they're a global property agent, that besides the expected, have other departments such as research, financing, consultancy and so on. Their research is considered of a professional nature, and you'll often see them quoted in the media.

Included in the above was:
'Retail
Scotts Square losing retailers (7 Mar – ST)
According to the Straits Times, there were 10 empty retail units with 28 shops remaining during their visit. Sincere Fine Watches, Ginza Sushi Ichi, Arossa Wine & Grill and Bread & Butter were recent departures from the mall. Fashion brands Anne Fontaine, Kiton and Marina Rinaldi will exit the mall at the end of March.'


10/38 = 26%
13/38 = 34% vacant by end March.

I've heard of the mall, but had to look it up to remind myself where it was, between Tangs and the Hyatt on Scotts Road. Now I realise I have been in there... but I can't imagine why! It's mostly higher end clothing boutiques, with Hermes having a prominent street-facing corner unit. In some ways, it's just 'off-piste' (Off the main Orchard drag), and the brands are also retailed in many other nearby malls.

Maybe the mall's retailers rely on custom from visitors staying in the Marriot and Hyatt, I don't know. Is tourism down? It seems most unusual that a mall so close to the epicentre of retail action appears to be dying a death. I was wondering if there are any other malls where this phenomenon has occurred.
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Re: Dying malls (why do some seem to do that?)

Postby ecureilx » Sat, 14 Mar 2015 1:36 pm

JR8 wrote:I was reading the 'Savills Singapore Press Digest 13 March 2015', they're a global property agent, that besides the expected, have other departments such as research, financing, consultancy and so on. Their research is considered of a professional nature, and you'll often see them quoted in the media.

Included in the above was:
'Retail
Scotts Square losing retailers (7 Mar – ST)
According to the Straits Times, there were 10 empty retail units with 28 shops remaining during their visit. Sincere Fine Watches, Ginza Sushi Ichi, Arossa Wine & Grill and Bread & Butter were recent departures from the mall. Fashion brands Anne Fontaine, Kiton and Marina Rinaldi will exit the mall at the end of March.'


10/38 = 26%
13/38 = 34% vacant by end March.

I've heard of the mall, but had to look it up to remind myself where it was, between Tangs and the Hyatt on Scotts Road. Now I realise I have been in there... but I can't imagine why! It's mostly higher end clothing boutiques, with Hermes having a prominent street-facing corner unit. In some ways, it's just 'off-piste' (Off the main Orchard drag), and the brands are also retailed in many other nearby malls.

Maybe the mall's retailers rely on custom from visitors staying in the Marriot and Hyatt, I don't know. Is tourism down? It seems most unusual that a mall so close to the epicentre of retail action appears to be dying a death. I was wondering if there are any other malls where this phenomenon has occurred.

That place was occupied by a nice medium end mall with an affordable food court before it was torn down to become a mixed development ...

Maybe the previous concept wasn't good ...

How to say they aren't occupied much ... leaves me wondering what they learnt ...

Anyway I guess it's OPM (other people's money ... ) for the developers

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Re: Dying malls (why do some seem to do that?)

Postby earthfriendly » Sun, 15 Mar 2015 1:25 am

The reasons that I can think of for the decline of shopping malls.

- high rental

- lots of competition for stores selling same kind of merchandise, I am referring mostly to those in fashion retailing, phone cases, beauty goods, beauty services etc......

- competition from online retailers like Amazon.com

- SG has a high density of retail stores and they are continously building more. I am unable to locate the article (with data) that premised "can the present population size support the large number of retail outlets" .

- drop in mainland Chinese tourists (as they are the latest spending tourists for SG) since the MH 370 flight incident (and corruption crackdown in China?). SG is usually bundled with the other SE Asian destinations and a drop in visits to Malaysia will also affect SG as a result.

Affordability also comes to mind. After paying the mortgage, transportation, livein maid salary, retirement savings, kids' tuition and extra curriculum activities, financial support for elderly parents (some families still do that), food, cellphones, other electronics , how much is left of the disposable income?

Last but not least, I wonder if there is a change in attitude towards consumerism and lifestyle? Wants vs needs. The higher your expense, the higher the need to stay in the rat race. Lower expense = less income needed = more leisure time and more freedom.

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Re: Dying malls (why do some seem to do that?)

Postby Brah » Sun, 15 Mar 2015 8:35 am

JR8 wrote:I've heard of the mall, but had to look it up to remind myself where it was, between Tangs and the Hyatt on Scotts Road. Now I realise I have been in there... but I can't imagine why!


There is that sister restaurant of one in Mandarin Gallery, similarly over-priced, over-hyped, overcrowded and with a vibe that each time has left me never wanting to return.

There is a good bakery on B1 or B2, though yet another where you pay over 5$ for a coffee and about the same for a danish, so no one will suffer if it's gone.
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Re: Dying malls (why do some seem to do that?)

Postby x9200 » Sun, 15 Mar 2015 8:51 am

Here are some attempts to analyze the situation:
http://www.straitstimes.com/news/singap ... s-20150307

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Re: Dying malls (why do some seem to do that?)

Postby Primrose Hill » Mon, 16 Mar 2015 9:32 am

Brah wrote:
JR8 wrote:I've heard of the mall, but had to look it up to remind myself where it was, between Tangs and the Hyatt on Scotts Road. Now I realise I have been in there... but I can't imagine why!


There is that sister restaurant of one in Mandarin Gallery, similarly over-priced, over-hyped, overcrowded and with a vibe that each time has left me never wanting to return.

There is a good bakery on B1 or B2, though yet another where you pay over 5$ for a coffee and about the same for a danish, so no one will suffer if it's gone.


Is that the one by Fairprice Finest? I like their Ham and Cheese Baguette but come on for that price? :shock:

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Re: Dying malls (why do some seem to do that?)

Postby retroman » Mon, 06 Apr 2015 3:00 pm

rental keeps going up forcing the shops to have to sell more expensive in order to cover their rental

every shopping mall u go to u only see the same few brands

not enough diversity

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Re: Dying malls (why do some seem to do that?)

Postby movingtospore » Mon, 06 Apr 2015 8:23 pm

retroman wrote:rental keeps going up forcing the shops to have to sell more expensive in order to cover their rental

every shopping mall u go to u only see the same few brands

not enough diversity


There also seems to be a poor understanding of competition in many cases...supply and demand. Case in point the J Cube mall in Jurong. Couple years ago up it went with big fan fare due to the ice skating rink. Then the same property company thought it would be bright to open yet another mall right next door, but this one with large anchor tenants that previously were only found downtown or on Orchard. So, J Cube is pretty much going bust.

Couldn't see that one coming... #-o

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Re: Dying malls (why do some seem to do that?)

Postby JR8 » Tue, 07 Apr 2015 12:29 am

Pity the J-Cube tenants locked into top-$ 25 year(+) commercial leases. No way out except possibly via bankruptcy. I don't suppose the developers care, most tenants are on the hook, come hell or high-water.
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Re: Dying malls (why do some seem to do that?)

Postby ecureilx » Tue, 07 Apr 2015 12:30 am

JR8 wrote:Pity the J-Cube tenants locked into top-$ 25 year(+) commercial leases. No way out except possibly via bankruptcy. I don't suppose the developers care, most tenants are on the hook, come hell or high-water.

True that the developers don't give a hoot

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Re: Dying malls (why do some seem to do that?)

Postby x9200 » Tue, 07 Apr 2015 7:31 am

Isn't the developer = the owner in this case?

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Re: Dying malls (why do some seem to do that?)

Postby retroman » Tue, 07 Apr 2015 10:44 am

Go check out BigBox fb page

lots and lots of negative feedbacks and reviews

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Re: Dying malls (why do some seem to do that?)

Postby ScoobyDoes » Fri, 10 Apr 2015 12:09 pm

retroman wrote:Go check out BigBox fb page

lots and lots of negative feedbacks and reviews


I can certainly understand why. The building is so cheap and horrible looking whilst the stuff for sale is no cheaper than anywhere else. Layout sucks, it's dark and it feels like a cheap mall from the likes of Malaysia, China and/or Thailand.

We went once.........only.

If I go back, it will only be for the carpark.
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Re: Dying malls (why do some seem to do that?)

Postby x9200 » Fri, 10 Apr 2015 2:46 pm

retroman wrote:Go check out BigBox fb page

lots and lots of negative feedbacks and reviews

And where can I see it? May patience lasted to scroll it down to March 20th and I didn't see a single negative comment.

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Re: Dying malls (why do some seem to do that?)

Postby retroman » Sat, 11 Apr 2015 9:54 am

x9200 wrote:
retroman wrote:Go check out BigBox fb page

lots and lots of negative feedbacks and reviews

And where can I see it? May patience lasted to scroll it down to March 20th and I didn't see a single negative comment.


I think the moderator deleted all the negative comments.


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