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It is no secret that the fortunes of department stores have been dwindling, amid changing consumer preferences and the rise of e-commerce. As the Covid-19 pandemic forces retailers worldwide to shut their doors, the department store model of sprawling stores and large inventories that span every imaginable category has been put under additional strain.
Read More: Is A Revolution Brewing In The Business Of Fashion?
Is this the final blow for the format? Already, in the United States, giants like Neiman Marcus and JC Penney have filed for bankruptcy. Nordstrom announced the closure of 16 stores, while Macy’s is seeking financing amid a projected first-quarter operating loss of around US$1 billion (S$1.4 billion).
Retail sales in March, before the start of the circuit breaker, saw sales at department stores drop by 39 per cent year-on-year – one of the largest declines among retail categories tracked by the Singapore Department of Statistics.
In Singapore, department stores such as Tangs and Metro are mostly keeping mum about whether the impact of the outbreak, which is expected to reshape the retail sector, will lead to closures. But the outlook is bleak.
Retail sales in March, before the start of the circuit breaker that forced most retail stores to shut for the duration, registered the sharpest drop in almost 22 years. They fell 13 per cent from the same period last year.
Department store sales saw a 39 per cent year-on-year drop – one of the largest declines among retail categories tracked by the Singapore Department of Statistics. Online transactions, meanwhile, made up 8.5 per cent of overall retail sales in March, nearly double the 4.3 per cent for the same month in 2018, and up from 5.3 per cent last year.
With store closures stretching into their third month, many retailers are turning their focus to e-commerce to survive. But experts say that an online pivot may not be enough to save department stores.
Shrinking Footprint
Department stores, once a hub for the latest fashion and household needs, have fallen behind the times. Fast-fashion chains have lured shoppers with trendy items at low prices, while home furnishings and appliances can often be found at a discount online, where vendors save on rental and manpower costs.
In Singapore, the rise of suburban malls that house international brands has also dampened the allure of Orchard Road, where many department stores are concentrated. As a result, some have been shrinking their footprint or disappearing entirely.
Read More: ‘The True Cost’ Shows the Impact of Fast Fashion on People and the Planet
Isetan shuttered its outlet at Westgate mall in March, while Robinsons said it will be closing its 85,000 sq ft store in Jem in August, leaving it with just The Heeren and Raffles City stores here. Both closures were initiated before the coronavirus outbreak. Metro shut its flagship store at The Centrepoint last year, a move it said was part of efforts to rationalise its retail business in response to changing market conditions.
More at https://www.femalemag.com.sg/fashio...tore-retail-shopping-outlets-mall-covid-2020/
Read More: Is A Revolution Brewing In The Business Of Fashion?
Is this the final blow for the format? Already, in the United States, giants like Neiman Marcus and JC Penney have filed for bankruptcy. Nordstrom announced the closure of 16 stores, while Macy’s is seeking financing amid a projected first-quarter operating loss of around US$1 billion (S$1.4 billion).
Retail sales in March, before the start of the circuit breaker, saw sales at department stores drop by 39 per cent year-on-year – one of the largest declines among retail categories tracked by the Singapore Department of Statistics.
In Singapore, department stores such as Tangs and Metro are mostly keeping mum about whether the impact of the outbreak, which is expected to reshape the retail sector, will lead to closures. But the outlook is bleak.
Retail sales in March, before the start of the circuit breaker that forced most retail stores to shut for the duration, registered the sharpest drop in almost 22 years. They fell 13 per cent from the same period last year.
Department store sales saw a 39 per cent year-on-year drop – one of the largest declines among retail categories tracked by the Singapore Department of Statistics. Online transactions, meanwhile, made up 8.5 per cent of overall retail sales in March, nearly double the 4.3 per cent for the same month in 2018, and up from 5.3 per cent last year.
With store closures stretching into their third month, many retailers are turning their focus to e-commerce to survive. But experts say that an online pivot may not be enough to save department stores.
Shrinking Footprint
Department stores, once a hub for the latest fashion and household needs, have fallen behind the times. Fast-fashion chains have lured shoppers with trendy items at low prices, while home furnishings and appliances can often be found at a discount online, where vendors save on rental and manpower costs.
In Singapore, the rise of suburban malls that house international brands has also dampened the allure of Orchard Road, where many department stores are concentrated. As a result, some have been shrinking their footprint or disappearing entirely.
Read More: ‘The True Cost’ Shows the Impact of Fast Fashion on People and the Planet
Isetan shuttered its outlet at Westgate mall in March, while Robinsons said it will be closing its 85,000 sq ft store in Jem in August, leaving it with just The Heeren and Raffles City stores here. Both closures were initiated before the coronavirus outbreak. Metro shut its flagship store at The Centrepoint last year, a move it said was part of efforts to rationalise its retail business in response to changing market conditions.
More at https://www.femalemag.com.sg/fashio...tore-retail-shopping-outlets-mall-covid-2020/
