Time to turn adversity into opportunity

 
What are the main reasons behind the oversupply of retail space in Singapore?

THE oversupply and high vacancy of retail space is a result, first and foremost, of declining economic conditions and consumer confidence.

Against this backdrop, the situation is compounded by high rentals, keen competition from the proliferation of online stores, a fall in tourist arrivals, and more and bigger shopping malls popping up in suburban areas.

Additionally, retail is one of the sectors most affected by the manpower crunch arising from the clampdown on the hiring of foreigners. Therefore, many retail businesses are finding it difficult to hire retail staff in spite of the higher wage costs to attract them, and are choosing to close shop in view of the challenging economic and business climate.

Ronald Lee
Managing Director
PrimeStaff Management Services Pte Ltd