Few barriers to entry and strong supply chains in Singapore are factors that attract international retailers, according to a report by JLL.
The Republic has been ranked as the third most popular destination in the Asia Pacific region for international retailers, behind Hong Kong and Shanghai, according to a new report by JLL on Wednesday (Dec 3).
The report noted that Singapore is often used as a hub for expansion into other Southeast Asian markets, and international retailers see the city-state as an important market for building brand awareness. Few barriers to entry and strong supply chains in Singapore are other factors that attract international retailers, it added.
Still, there are several hurdles for brands looking to enter the market. With low vacancy rates in prime locations, it is difficult for brands to secure an appropriate retail location, the report said, adding that this supply and demand disparity has led to rental price growth in prime locations over the past few years.
At the same time, landlords now have to give more thought to their tenant mix in order to attract customers, given the influx of new malls, decline in reported tourist arrivals and the rising impact of e-commerce, it said.
Said Mr Tom Hamilton, Director of Retail, JLL Singapore: “In 2015, we envisage a continued growth of international brands entering the Singapore market but with very specific emphasis placed on sourcing stores in the strongest strategic locations.”
A continued slow-down is expected in the take up of weaker locations, with many existing retailers reining in expansion strategies along with the potential consolidation of store numbers, he added.
Source : Channel News Asia | December 3, 2014