Chitchat Robinsons Collapsed after 162 Years - FTs and Dirty $$$ Tiongs Indons not Shopping???

[CPTMiller]

We need to let street vendors sell their stuff by the roadside, perhaps a few months rent-free. But I doubt the PAP technocrats will do that, as they're control freaks, Look what they did to the Sungei Road market.

How could that ever happen at a first world country under Lee?
Are you joking?

 

[sweetiepie]

Subsidiary vs Franchise

subsidiary is part of YOUR company

Franchise is not your company but an authorisation granted to your company

eg , John Little was acquired by Robinsons , therefore a subsidiary

Marks and Spencer’s is a bigger company than Robinsons but do want to operate by themselves in Sinkieland but franchise it’s name to operate by Robinsons in Sinkieland only

In this case when Robinson close shop in sg likely the m&s also close shop alongside with it unless they rent another space for themselves KNN

 

[Papsmearer]

Robinson's finally used up all their 9 lives. They should have been gone in 1972 after the big fire that burn the flagship store in Raffles Place to the ground killing 9 people. Turned out the bloody place was a fire trap. My father bought a fancy floral chandelier the week before they burn up. We could have been trapped there and BBQed if we waited one more week to buy it. I thought they would go under for sure.

 

[Nice-Gook]

In this case when Robinson close shop in sg likely the m&s also close shop alongside with it unless they rent another space for themselves KNN

Mark and Spencer can still operate under the parent company of Robinsons or Mark and Spencer can operate on its own or find another franchiser say Mustaffa

 

[sweetiepie]

Mark and Spencer can still operate under the parent company of Robinsons or Mark and Spencer can operate on its own or find another franchiser say Mustaffa

My uncle think mampus lo KNN

 

[Nice-Gook]

My uncle think mampus lo KNN

It depends on the viability of Mark and Spencer’s business as it still may carry merchandises in demand

or sometimes such companies may just want a presence in Sinkieland so stay regardless of the cost

 

[SalahParking]

the next to go up in smoke is mustafa

 

[Scrooball (clone)]

The next one to go down is Kinokuniya for sure... the space they occupy is massive. The rent must be killing them. I can’t even recall the last time I bought a physical book.

 

[laksaboy]

The next one to go down is Kinokuniya for sure... the space they occupy is massive. The rent must be killing them. I can’t even recall the last time I bought a physical book.

https://en.wikipedia.org/wiki/Books_Kinokuniya#Overseas_stores

Kinokuniya has stores in many countries. If it closes shop here, it'll carry on as usual in other countries.

Kinokuniya doesn't only sell books, fyi.

 

[Hypocrite-The]

If the retail scene is dead. Wont the REITS n landlord b affected? Who can replace their tenants?

 

[Hypocrite-The]

'I doubt we will be paid': Robinsons' suppliers left in the lurch
Customers queue to enter a Robinsons department store at the Hereen along Orchard Road on Oct 30, 2020. (Photo: AFP/Roslan Rahman)

By Zhaki Abdullah
03 Nov 2020 04:34PM (Updated: 03 Nov 2020 04:58PM)
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SINGAPORE: Days after department store Robinsons announced it was closing its last two outlets in Singapore, some suppliers said they are owed thousands of dollars by the 162-year-old retailer.
These suppliers sell their products on consignment, where they are paid only after goods are sold to customers.

Ms Vera Ong, the owner of tableware store Lovera Collections, said Robinsons owes her company about S$6,400 for sales between August and October.
When she asked Robinsons if she could collect her unsold stock from the department store’s The Heeren branch, staff members had told her no and said she would require approval from liquidators KordaMentha.
However, repeated emails and calls to KordaMentha director Hamish Bull went unanswered, she said.
It was only when Ms Ong turned up at The Heeren with her baby in tow that she realised the liquidators were there and could approve any such claims in person.

“There was no proper communication sent to vendors on how to (claim) their stock. Up till today we have other vendors messaging us to ask how we withdrew ours,” she told CNA.
READ: Robinsons to close last 2 stores in Singapore due to weak demand
In a Facebook post, KordaMentha said suppliers need to provide evidence that stock is held on consignment before returning the collection. This could be in the form of a consignment agreement with Robinsons or copies of purchase orders or invoices.
Lovera Collections is also owed about S$3,000 from honestbee, which was issued a winding up order by the High Court in July this year.

Ms Dawn Bey, who owns Pew Pew Patches - which sells embroidered iron-on and sticker patches - said she is owed more than S$1,000 for August and September.
She has since withdrawn her remaining stock, worth about S$8,000 from Robinsons.
Despite Robinsons closing its outlet at Jem in August, the 30-year-old said she did not expect the other stores to close as well.
“I’m not sure what is going to happen to the outstanding payments but from the experience with Gallery & Co, I doubt we will be paid,” she said, referring to the store at the National Gallery Singapore where her company also had consignment stock.
Gallery & Co announced its liquidation in August this year.
READ: Robinsons' customers in limbo over unfulfilled orders as suppliers await payments
Any revenue is likely to go towards paying Robinsons' other obligations, Ms Bey noted.
“Vendors are one of the last on the list so essentially, we put our stocks there to be sold but to pay everyone else. It’s a huge loss for us.”
A spokesperson for bed linen supplier Intero Enterprises, who declined to be named, said he had previously gone through the liquidation of stores such as Yaohan and Oriental Emporium, while working with other employers in the past.
The liquidators then had arranged for meetings with creditors to brief them of what they could expect, prior to the company formally announcing its closure, he said.
In contrast, vendors had no clue that anything was amiss with Robinsons, he said, noting they had been told to prepare for Black Friday, Christmas and Chinese New Year sales right up until mid-October.
He described the situation with Robinsons as “disorganised” in comparison.
“The owner cannot just push the thing to the liquidator and expect the liquidator to handle the whole thing. There must be some responsibilities the owner must take,” he said, adding he hopes the authorities can step in to assist vendors caught in such predicaments.
He said he had been informed by KordaMentha that a creditors meeting would be held no later than Nov 27.

File photo of Robinsons at Jem shopping mall.

"SHOULD NOT COUNT ON GETTING PAID IN FULL"
When contacted by CNA, a Robinsons spokesperson said: “With regards to all operations enquiries such as refunds and deposits, we are sympathetic to the concerns raised by stakeholders and we trust that the KordaMentha team is doing their very best and will swiftly handle the matter.”
CNA has contacted KordaMentha for more information.
The liquidator had previously told the media that suppliers would be paid for any sales made from Friday (Oct 30) onwards, and that it was assessing options to “preserve the value of Robinsons’ assets and maximise returns to creditors”.
However, the chances of suppliers getting paid in full are slim, said lawyers.
WATCH: 'My favourite store': Fans rush to Robinsons' 2 outlets after announcement of closure
“As the suppliers are unsecured creditors, they would usually rank last in the pecking order of claimants. Hence, the possibility of getting their outstanding payments would be below average and they should not count on being paid in full,” said Farallon Law Corporation managing director Nicolas Tang.
Mr Steven Lam, director of Templars Law, said vendors would typically have to file a proof of debt with the liquidators, as is the case with Robinsons.
“In extreme cases, they could consider asking the liquidators to look into the actions of the directors and the officers of the company to see whether there is a possibly of wrongful trading or even conspiracy,” added Mr Lam.
“None of Robinson’s suppliers will be able to sue for the outstanding payments during the liquidation process, when any legal action against Robinsons would not be allowed by the court,” said Mr Tang, noting this is to prevent any further deterioration of Robinsons' financial position.
READ: Do department stores still have a future in Singapore?
While working on a consignment basis puts small- and medium-sized enterprises (SMEs) at a disadvantage in such situations, Ms Bey said she would continue to do so as this is the “only model that exists in Singapore right now”.
“It’s rare to find someone who wants to buy wholesale from you, especially since you’re a local brand and can easily send stocks down when needed,” she said.
“Small companies have no choice but to take this model to extend their reach into different audiences. They’re too small to afford the rent of a shop either,” she added.
“So unfortunately, we have no choice but to continue working with this model. Perhaps the Government needs to relook at the laws to protect SMEs especially during liquidation as there are so many these days.”
Source: CNA/az(ta

 

[Hypocrite-The]

Undelivered purchases, money possibly lost: Robinsons’ closure leaves Singapore customers, suppliers in the lurch
Monday, 02 Nov 2020 07:47 AM MYT

At The Heeren, Singapore on November 1, 2020, a section was cordoned off with shoes and boxes strewn on the ground and on the tables. — TODAY pic
SINGAPORE, Nov 2 — Robinsons’ shock announcement that it was going to close its department stores after 162 years has left some in the lurch, with customers unsure if their orders will be fulfilled and suppliers worried that they may never get back hundreds of thousands in sales proceeds.
When TODAY visited the two Robinsons outlets yesterday, hundreds of customers continued to form snaking queues to enter the department store.



Some shelves were already emptied. At The Heeren, a section was cordoned off with shoes and boxes strewn on the ground and on the tables.
One customer, Kevin Soh, was at the mattress section at Raffles City trying to get more information from a sales staff about mattresses he had ordered and paid for in full that were due to be delivered around November.

The 34-year-old who works in marketing told TODAY he had paid about S$5,000 (RM15.189) for the two mattresses in July and was unsure if Robinsons would continue to fulfil the order or provide a refund.

He was handed a printed letter signed off by Robinsons, which said customers’ concerns about the pre-payments and deposits made to Robinsons on mattress sales have been “identified as a priority issue to be addressed with the mattress suppliers.”
“We are scheduling meetings with mattress suppliers on an urgent basis to try and resolve the current situation,” the letter said.
Robinsons said on Friday it has started the liquidation process of its two remaining stores at The Heeren and Raffles City shopping centre, after it closed its outlet at Jem in August.
Without specifying its last day for the two stores, Robinsons said it will remain open in the next few weeks to facilitate final sales for customers before the retailer closes for good.
Another mattress customer who wanted to be known only as Ms Ang, said she had paid the full S$2,300 for a Simmons mattress in October, which was supposed to be delivered this Thursday.
“When I saw the news, I quickly called Simmons and asked if they would still deliver to us on Thursday as promised but they said now Robinsons is not paying them, therefore they can’t fulfil our order,” she said.
In a statement on Facebook on Saturday afternoon, Simmons said it would be meeting with the appointed liquidator, KordaMentha, in the coming week and retail consultants will contact the customers with updates on the issue.
Mattress store Sealy, meanwhile, in a statement on Facebook advised customers to contact their bank to cancel payment to Robinsons immediately and redirect their purchases to them directly so they can fulfil their orders.
Supplier face uncertainty
Meanwhile, Robinsons’ suppliers are unsure whether the company will repay them for outstanding proceeds from sales in the past months.
These suppliers sell their products on consignment, which means Robinsons pays them only after the goods are sold to customers.
The suppliers said the liquidators have not given any indication whether they will be paid for goods sold over the weekend.
In response to queries, KordaMentha director Hamish Bull said goods sold on consignment after Thursday will be paid in full to suppliers under their “normal trading terms” with Robinsons.
Some suppliers, however, are not taking the risk and have chosen not to continue selling their goods at the department store.
“What people bought on Friday, Saturday and today (Sunday) onwards is too bad for me,” said a kitchen equipment supplier who spoke on condition of anonymity as his company is still owed about S$100,000 for Vera Ong, the sole proprietor of tableware firm Lovera Collections, told TODAY she is owed S$6,400 for sales made since August.
She said her calls and emails to the liquidator on Friday went unanswered for the entire day. She was only told the next morning she could withdraw her items after showing documents of the consignment agreement.
With just one part-time staff, she had to enlist the help of her husband, father, and a friend to pack up the items.
“When we were there packing, we noticed that some of our things were scattered on the floor so we don’t know whether there are any loose items,” she said.
In a letter to consignment suppliers on Thursday, appointed provisional liquidator David Kim from KordaMentha said payment for the outstanding proceeds is dependent on the outcome of the liquidation.
A creditors’ meeting will be held no later than November 27, he added.
One sticking point the suppliers raised was that they were not given prior notice that the stores were going to close.
A spokesman for Intero Enterprise, which sells menswear and bed linens, said he intends to seek legal recourse because the suppliers were “misled into believing that the business was ongoing”.
Robinsons staff had approached him to plan for year-end promotions in the months prior and he had to order and pay for additional stock from the factories, he said.
“The way that the liquidation happened is very unethical,” said the supplier, who added that this is the fourth time in 38 years that he is going through a liquidation but none was as unprofessionally handled as this.
The firm, which is being owed a “substantial amount”, packed up its goods on Friday. “Nothing was being spelt out to vendors on how the liquidator will (continue to) conduct the business,” the spokesperson added.
As for the unpaid proceeds from earlier sales of consigned goods, Mr Bull of KordaMentha said in his emailed response to TODAY that it is still too early in the liquidation process to identify when the outstanding payment will be made to suppliers.
“We are cognisant that we are in challenging times and we will ensure we are in a position to make a distribution as soon as practicable,” he added.
What lawyers said
When a company enters insolvency, it will have to pay back lenders based on a prescribed priority.
Secured claims such as secured bank loans will have high priority. This is followed by other preferential claims, such as remuneration of liquidators and employee wages. Outstanding proceeds from the sale of consigned goods are unsecured debt and ranks even lower.
“Among creditors, unsecured creditors rank quite low,” said director Ashok Kumar of BlackOak, a specialist restructuring and insolvency law firm.
This means that these suppliers will not be able to seek payment until the liquidation process is completed and may only get back a fraction of their claim.
As for customers who have made payments for their mattresses, whether they will receive their product will depend on the terms of sale, lawyers said.
Justin Yip, a partner at Withers KhattarWong, advised customers to read their sales conditions carefully to see if ownership of the mattress passes to the consumer upon full payment.
“If so, they should insist on the mattress,” he said.
Refunds, on the other hand, would be more tricky. “It’s unlikely that liquidators will be in a position to pay any refunds in a liquidation,” he added.

“One thing is certain in most liquidations: Don’t expect the creditors to leave with 100 cents to the dollar of what they’re owed. The fact that the company is in liquidation means that it’s financially in a bad state.” — TODAY

 

[Hypocrite-The]

Robinsons plans to pay creditors next year; stores to operate until mid or end-December
Customers queue to enter a Robinsons department store at the Hereen along Orchard Road on Oct 30, 2020. (Photo: AFP/Roslan Rahman)

By Tang See Kit@SeeKitCNA
26 Nov 2020 08:31PM (Updated: 26 Nov 2020 08:40PM)
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SINGAPORE: Creditors of Robinsons will have to wait until next year, likely between April and June, to get back what they are owed by the department store operator, two sources told CNA after a creditors’ meeting on Thursday (Nov 26).
Those who attended the online meeting were also told by liquidators KordaMentha that the two remaining Robinsons stores at The Heeren and Raffles City Shopping Centre will keep operating for closing-down sales until the middle or end of next month, said the sources who spoke on condition of anonymity.

Robinsons announced in a separate press release that it will hold its final Black Friday sale on Nov 27 with discounts of up to 70 per cent storewide.
“They want to continue selling down the assets, which include inventories at the stores, until mid-December or end-December. (The liquidators) said they can’t give a fixed date for the store closures because this is still a work in progress,” said one of the sources who attended the meeting.
“Then they will do the reconciliation and decide how much each creditor will get. It will be April to June 2021 when they can start to distribute the assets,” he added.
READ: Robinsons to close last 2 stores in Singapore due to weak demand


Both sources, who are suppliers to the department store and are owed six-figure sums each, said they are not hopeful in recovering what they are owed.
Taking legal action is also not an option for them, said one of the suppliers. “They don’t have money so is there any use suing them? The legal fees are also too high. We can only wait and see what happens.”
Lawyers previously told CNA that suppliers, who are considered unsecured creditors and rank at the bottom of the priority list in a liquidation scenario, have a slim chance in getting paid in full.
READ: 'I doubt we will be paid': Robinsons' suppliers left in the lurch


The online meeting on Thursday, which started at 2pm and lasted for about one-and-a-half hours, was held for creditors to vote on several resolutions after Robinsons announced its decision to throw in the towel.
All the resolutions were passed by a majority of creditors in attendance in both number and value. More than 200 creditors were present at the online meeting.
These include the appointment of KordaMentha’s Cameron Duncan and David Kim as liquidators overseeing the winding up of the department store.
A five-member committee of inspection, which includes representatives from major creditor groups such as employees, landlords and suppliers, was also appointed.
442 CREDITORS OWED MORE THAN S$31M
Owned by Dubai-based Al-Futtaim Group, Robinsons unexpectedly announced on Oct 30 that it would be closing its two remaining department stores in Singapore.
The decision to exit the Singapore market after 162 years comes amid changing retail buying patterns and weak demand made worse by the COVID-19 pandemic, it said.
READ: Do department stores still have a future in Singapore?

In a Nov 13 notice calling for the creditors’ meeting, Robinsons said it owed about S$31.7 million to 442 creditors.
The largest amount owed – about S$7.2 million – was to Swee Cheng Holdings, the landlord of its flagship outlet at The Heeren.
It also owed two other landlords, Lendlease Retail Investments and RCS Trust, S$4.2 million each. The former operates Jem shopping mall where Robinsons had an outlet until August, while RCS Trust runs Raffles City Shopping Centre.
Mattress brands Tempur, Simmons, Sealy and Serta were also on the list. Among them, Tempur had the largest amount of S$154,408, while the other three brands were owed S$35,556, S$56,590 and S$17,889, respectively.
READ: Some mattress suppliers to honour orders by Robinsons' customers

When contacted, a Simmons spokesperson said the amount listed on the notice “is not the actual amount owed” to the company.
“The actual amount owed is definitely more than that as it includes the goods already delivered between September and October 2020 before the sudden announcement of liquidation,” the spokesperson added, without disclosing a figure. Simmons has submitted its proof of debt with the liquidator.
Other affected brands that were owed significant sums include fragrance and cosmetics distributor Luxasia (S$826,631) and cosmetics giant L'Oreal Singapore (S$572,700).
The notice also showed that potential employee claims amounted to about S$4.4 million. Robinsons employs about 175 staff in Singapore.
These amounts are according to Robinsons’ records and the filing of creditor claims is under way, KordaMentha director Hamish Bull told CNA on Thursday.

 

[Hypocrite-The]

Commentary: Robinsons shuttered for good. Does Singapore have too much retail space?
Robinson’s closure should provoke a rethinking of the department store model, not a complete eradication of it, say NUS Institute of Real Estate and Urban Studies’ Lau Li Min and Sing Tien Foo.

retail composite
Composite images of Robinson's at the Heeren (Photo: AFP/Roslan Rahman), person shopping online (Photo: Unsplash), ION's Esprit store (Photo: ION Orchard) and Raffles Place Arcade (Photo: Jeremy Long).
Bookmark
SINGAPORE: It’s been more than a month since Robinsons called it quits.

Its stores at Raffles City and The Heeren are almost empty, as bargain hunters cleared out shelves of discounted products in recent weeks.

For decades, this up-market departmental store has provided millions with good memories, as parents, with children in tow, shopped through a whole range of items from homeware, fashion, children’s clothes, bed and linen, electronic items and luxury products.

And as the holiday season draws close, nostalgia is particularly strong. Robinsons had been a go-to place for last-minute gift shopping during festive seasons.

REFLECTING THE UPS AND DOWNS OF THE RETAIL INDUSTRY

In so many ways, Robinsons' journey mirrors closely the up-and-down of the retail industry.

During its heydays in the 1980s and 1990s, Robinsons' flagship store at Orchard Road was brimming with families, where its creative, lively window displays caught the attention of passers-by.

Shoppers and tourists never missed a photo opportunity with the bright, interactive Christmas decorations of its shop frontage and the building facade of Centrepoint during the festive seasons.

Competition was aplenty but there was enough business to go around. Peers like Oriental Emporium, Yaohan, Daimaru, Sogo and John Little boomed.

john little
A John Little outlet at Plaza Singapura before it closed in 2016. (File photo: Tang See Kit)
But as Singapore prospered, with more iconic shopping malls added to the shopping district, and individual brands setting up their own stores, giving people the luxury of choice and novel, trendy options, department stores came under pressure.

The departmental store business in Singapore has undergone several rounds of transformation, with many old names closing for good.

This will not be the last, though few titans like Marks & Spencer, Isetan and Takashimaya remain.

READ: The Big Read: As Robinsons goes the way of Yaohan and Emporium, the end may not be nigh for dept stores
COVID-19 EXPOSED STRUCTURAL WEAKNESSES

The latest disruption that accelerated Robinson’s foreclosure is undoubtedly COVID-19.

While the Government has cushioned the bulk of the impact by granting rental relief and more to eligible retailers through the passage of the COVID-19 Temporary Measures Act, close to 2,500 companies in the retail sector called it a day from April to October.

These include home-grown, 37-year-old Sportslink as well as the Singapore operations of Esprit, Topshop/Topman, with many moving online.

READ: Commentary: How trendsetting brand Topshop fell behind the times
This was a trend that impacted a range of industries. Bookstores, like beloved Books Actually, were not spared.

But retail has been acutely affected. From plunges in tourist arrivals to local consumption (particularly during the circuit breaker), COVID-19 brought retail to its knees.

fig 1
(Graphic: Authors. Data: Singapore Tourism Board)
Average monthly retail sales, which hovered at S$3.7 billion pre-coronavirus, plummeted by at least 28 per cent from April to June.

fig 2
(Graphic: Authors. Data: Department of Statistics)
Departmental stores, apparel and footwear, were the two categories that suffered the biggest drops of 48 per cent and 44 per cent year-on-year on average respectively from January to September, the same time many fashion brands started thinking about closing down.

But COVID-19 has helped other categories of shopping mall tenants, especially supermarkets, convenience stores, watches and jewellery, which saw a growth in sales. Supermarkets reported the strongest performance, at an average year-on-year revenue growth of 34 per cent during this period.

So was this merely a short-term disruption? Will we see department stores bounce back once we return to normalcy?

Or might it be that inherent structural weaknesses were at the heart of such? Is the department store outdated?

Did Singapore just have too much retail space and the cull was only a matter of time?

READ: Commentary: Retail isn’t dead – look at snaking queues outside Apple stores
RETAIL DOESN’T TAKE UP THAT MUCH SPACE IN SINGAPORE

The available gross private sector retail space as of 3Q of 2020 stands at 5.76 million sq m, according to the Urban Redevelopment Authority, with 40 per cent and 26 per cent concentrated in the central and city fringe areas respectively.

fig 3
(Graphic: Authors. Data: URA Realis)
The balance one-third, serving primarily residents in the heartlands, is distributed across Singapore.

By international standards, benchmarked by the International Council of Shopping Centres (ICSC) and retail consultancy Cistri, the shopping centre floor space per capita in Singapore is estimated at 6.4 (2019), a quarter of the US number of 23.1.

Compared to Hong Kong (10.1) and Kuala Lumpur (9.9), Singapore’s shopping centre floor space does not seem excessive, though it is a higher number compared to mature countries like UK (4.6), Japan (4.5) and Germany (2.3).

The available private sector space has also grown at a slow average quarterly rate of 0.4 per cent since 2011.

fig 4
(Graphic: Authors. Data: URA Realis)
New private retail spaces under construction and in the pipeline have also declined since 2014.

fig 5
(Graphic: Authors. Data: URA Realis)
But the next five years will see more retail spaces as Woodleigh Mall (expected TOP in 2022), Sengkang Grand Mall (expected TOP in 2023), and The Ryse Residences (expected TOP in 2024) will supply a combined gross retail space of approximately 56,000 sq m.

Another 40,800 sq m of new retail spaces will come from refurbished projects, such as 112 Katong and Shaw Plaza at Balestier Road, scheduled to reopen in 2021, and IMall, a new retail development connected to the Marine Parade MRT station slated for completion in 2023.

While average vacancy rates rose to above 11 per cent during the second and third quarters, our research shows inherent weakness in the retail sector, especially in strata-titled malls, since 2015, where the islandwide vacancy rate has hovered above 7.8 per cent.

READ: Commentary: Conserving Golden Mile Complex is a paradigm shift for Singapore architecture
Yet Robinsons' outlets in The Heeren, Raffles City and Jem should have little problems with finding tenants given the popularity of their locations, assuming some reconfiguration. Already 85,000 sq ft of retail space in Jem will be reconfigured to house the new concept store of Ikea next year.

Rental prices have also been coming down for the past five years. Rentals of private retail spaces in the central and fringe area declined at an average quarter-on-quarter rate of 1 per cent since 2015.

fig 6
(Graphic: Authors. Data: URA Realis)
Meanwhile, private retail space prices in the central area declined even more at an average quarter-on-quarter rate of 1.2 per cent. This figure was 0.3 per cent for the city fringe area.

E-COMMERCE ISN’T THE BAD GUY

If not too much retail space, might e-commerce have been the bad guy that stole consumers during these coronavirus months where more people stayed home?

After all, the high-profile rise of e-commerce portals, such as Lazada, Shopee and others have significantly influenced shopping behaviour and preferences of consumers for some time.

Coupled with the wholesale migration of shoppers online during the circuit breaker months, consumer preferences might have shifted towards online shopping for good.

READ: Commentary: Every day feels like 11.11 since COVID-19
About 6.9 per cent of all purchases were made online in September 2019. This number surged to 11.2 per cent (or S$355.7 million) in September 2020, with telecommunications equipment, furniture and household equipment leading sales during the circuit breaker.

fig 7
(Graphic: Authors. Data: Department of Statistics)
This was the same story with F&B, as online sales surged to 44 per cent of total sales in May.

We have found, however, that the overall changes in consumer behaviour have been more nuanced.

In the past, consumers searched online to find product-related information, but completed purchases at a physical store given how long fulfilment of an online purchase took.

READ: Commentary: E-commerce is set to boom, driven by COVID-19
But the gradual improvements in supply chain management of e-commerce operators resulting in faster delivery times has triggered a shift. Consumers now find out about products from physical stores and make their purchases on online platforms with the most competitive deals.

COVID-19 has not only hastened but has also shaken up the substitution effects between offline fand online sales.

In this scenario, however, there is a role for brick-and-mortar stores. Cistri’s survey in July showed 66 per cent of shoppers expect online expenditures post-COVID-19 to remain roughly the same.

Those likely to spend more online are male, between 25 and 39, and in the low or high income groups (as opposed to the middle-income group).

READ: Commentary: Why luxury brands are weathering the pandemic better than other retailers
HOW RELEVANT ARE DEPARTMENT STORES?

Department stores in Singapore, such as Takashimaya, Tangs, Isetan and BHG, have adopted strategies to distinguish themselves from other online operators that compete mostly on prices.

Japan valentine's day
(Photo: AFP)
Isetan and Takashimaya have carved a niche in providing Japanese food offerings in their supermarket, to draw shoppers where touch, smell and taste are experiences that cannot be replicated digitally.

They also have a strong emphasis on the mall’s place-making efforts, where they organise ad hoc events from Japanese food fairs to routine festive sales such as Chinese New Year, Christmas and Mid-Autumn mooncake fairs to form strong associations with shoppers when those periods come around.

While crowd-pulling events are out of the question if they risk flouting safe distancing rules, perhaps the solution lies in how department stores can create attractive digital experiences that allow consumers to browse online and try offline, where the chase is less for footfall per se and more for convenience, mindshare and stickiness.

READ: Commentary: The future of Singapore e-commerce is in brick and mortar
Leaders in this field have proven omni-channel strategies. Alibaba’s Hema Xiansheng supermarket allows online shoppers to order fresh gourmet seafood, have it cooked and ready to be collected piping hot from a physical store, along with their groceries.

Similarly, IKEA’s store concept, which offers new home decoration ideas to customers, inspires and attracts homeowners and allows IKEA to cross-sell products.

READ: Commentary: We know the IKEA catalogue was much more to us than pages of furniture
NORDSTROM, NIKE AND ADIDAS LEAD THE WAY

Physical retail space really needs to be better rethought.

Nordstrom in the US, upheld as a shining example of a retail giant’s digital transformation, has created concept stores that resonate with shoppers, while strengthening its digital footprint.

Customers can buy products directly after viewing them on Instagram.

They can also pick up online orders at merchandise-free Nordstrom Local Stores, which offer alteration, styling, gift-wrapping and other lifestyle services. Since testing the concept in Los Angeles, Nordstrom has pushed into New York with two Local Stores.

Shoppers clutch their Nordstrom bags at an Old Navy store as holiday shopping accelerates at the Ki
FILE PHOTO: Shoppers clutch their Nordstrom bags as pre-Thanksgiving and Christmas holiday shopping accelerates at the King of Prussia Mall in King of Prussia, Pennsylvania, U.S. November 22, 2019. REUTERS/Mark Makela
Nordstrom’s pick-up orders doubled in the fourth quarter of 2019, comprising half of all of its e-commerce full-price sales.

Nordstrom is also disintermediating its offerings and has opened a store targeting men in New York City and another for women only in 2019.

Customers can also find slow-moving, off-season and discounted products at its off-price Nordstrom Rack stores, which lease smaller spaces and is differentiated from the full-price main brand. These act as outlet spaces that extend sale seasons beyond their traditional periods.

Similarly, sports brands like Nike and Adidas have outlet stores in Changi City Point where products are sold at cheaper prices and sales are more frequent, giving shoppers a reason to visit and allowing retailers to clear stocks faster, in time for the next season’s line-up.

With stores designed to allow people to try out discounted products comfortably and service staff with strong product knowledge, the good experience can entice bargain hunters to return.