Crate and Barrel exits Singapore market in shock announcement
- Published
15 May 2023 - Author
Camillia Dass
Home good retailer Crate and Barrel will be exiting the Singapore market, according to a statement on its social media channels.
The American brand, which has been in Singapore for the last 10 years, made the announcement out of the blue where it said that its last day of business will be 31 May.
"It is with a heavy heart that we announce the closure of Crate and Barrel Singapore. We have enjoyed serving the community over the past 10 years and would like to take this opportunity to express our gratitude for your loyalty and unwavering support," it said.
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It noted that its online retail and ION Orchard store will be open as per normal till the 31 May and that till then, shoppers can enjoy offers up to 40% off storewide in addition to other deals in its Crate & Barrel Thank You Singapore Sale.
While Crate and Barrel did not mention why they were closing down, it assured shoppers that they would be happy to answer questions.
"Kindly be patient with us as we provide more details in the coming days," it said in its social media statement.
MARKETING-INTERACTIVE has reached out for a statement.
Crate and Barrel joins a growing list of popular companies who are closing or downsizing this year as the world faces economic instability.
Recently, it was revealed that H&M Singapore would be closing its store in ION Orchard as of 12 March this year, according to a banner on the official H&M Singapore website as seen by MARKETING-INTERACTIVE. The news comes after it shut down its stores in Tampines and Punggol in 2020 and 2021 respectively. With the closure, Singapore will only have eight physical H&M stores and it is unclear if the company has plans to reopen more stores locally. The news, however, is not entirely out of the blue considering that H&M announced last year that it plans to close as many as 240 stores around the world, according to media reports.
The Swedish fast fashion outlet is not the only brand to be pulling out of Singapore. In fact, days before the announcement, British lifestyle brand Marks & Spencer said in a Facebook post that it will be shutting down its store in Jewel Changi Airport come February 19.
Surprisingly, the news comes amidst physical retail shopping seeing a resurgence as consumers adapt to life post COVID-19. In fact, several online marketplaces which saw a rise in popularity amidst lockdowns have also faced cuts and restructures due to more shoppers heading to physical outlets to experience offline shopping. Moreover, amidst the pandemic, with retail rentals seeing a dip, several online-first brands such as Love, Bonito, jewellery store By Invite Only and bedding company SOJAO also expanded their offering into physical outlets.
In a conversation with MARKETING-INTERACTIVE, Kevin Kan, the chief experience officer of Break Out Consulting Asia, a business consulting service, said that with the potential decline of sales as consumers reduce non-essential spending amidst the uncertain economy, and landlords increase rents as footfall increases, it’s not surprising that such brands are shutting stores in Singapore.
According to a 2021 report by McKinsey, towards the end of the pandemic, data showed that in-store shopping is here to stay. However, the report added that the retail space will need to function differently than in the past and will require new mindsets and capabilities - especially through offering online-to-offline (O2O) services as well as acting as strategic assets in the race for same-day delivery. At the end of the day, physical stores should play an important role in the future network of an omnichannel player.
Weighing in on the matter, Rhys Taylor, the managing director of VMLY&R Singapore said that physical retail experiences cannot exist in isolation from other channels any longer. While in the past TVCs, billboards, print ads, and prime real estate were some of the few (disconnected) drivers for maximising footfall, physical stores are now part of a much more complex customer journey, he explained.
"There’s lots to consider, but three things stand out: complex consumer journeys, varied purchase triggers, and new in-store needs.”
For example, if click and collect is a key part of your strategy, it may be much less about having a large bricks and mortar presence in a flagship location that has naturally high footfall, and more about being convenient to those customers who are visiting with stronger intent. “For example consider an Orchard boutique versus an MRT pick up kiosks for instance, depending on your business,” he said.
He continued by suggesting that if more customers are already coming to a physical store having purchased what they need, the brand then needs to question how they can cater to them differently when they arrive.
