<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 9, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>2009 retail sales expected to fall
High rents remain a bugbear for the industry
By NISHA RAMCHANDANI
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THE retail industry racked up sales of $35 billion in 2008.
But despite signs pointing to a stronger second- half this year, 2009 sales are unlikely to beat those last year.
Speaking on the sidelines of the Singapore Retail Industry Conference yesterday, Lau Chuen Wei, executive director of the Singapore Retailers Association (SRA), said it is 'not realistic' to expect to out-perform last year's benchmark.
Instead, she reckons 2009 sales could come in 3-5 per cent lower year-on- year. High rents remain a bugbear for the industry.
And retailers have to contend with other challenges such as price-conscious customers, a limited consumer base and tough competition.
'Retail rents continue to be out of track with the true economic situation,' said SRA's honorary secretary Angelo Augustus. 'We have reports of retail rents, especially in prime areas, still rocketing - despite the slower economy.'
Ms Lau said that because leases are typically locked in for three years, rents are being hoisted 20-30 per cent on renewal - and in some cases by even 50 per cent.
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</TD></TR></TBODY></TABLE>Ms Lau said Marina Bay Sands was aiming for 'very high' rents of $100 per sq ft when the economy was stronger, but has since moderated its expectations to a more realistic $60-$70 psf.
MBS Shoppes, which covers over 800,000 sq ft of retail and restaurant space, has leased almost 80 per cent of its mall. And as part of phase one, half of the total retail space will be opened in early 2010.
Speaking at yesterday's retail industry conference, Minister of State for Trade and Industry Lee Yi Shyan urged retailers to focus on boosting productivity through innovation and higher service standards.
An inter-agency task force was set up in February this year to look at how to raise productivity in three key services sectors, including retail.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>2009 retail sales expected to fall
High rents remain a bugbear for the industry
By NISHA RAMCHANDANI
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Print article </TD></TR><TR class=font10><TD width=20 align=right>
</TD><TD>Feedback</TD></TR></TBODY></TABLE>THE retail industry racked up sales of $35 billion in 2008.
But despite signs pointing to a stronger second- half this year, 2009 sales are unlikely to beat those last year.
Speaking on the sidelines of the Singapore Retail Industry Conference yesterday, Lau Chuen Wei, executive director of the Singapore Retailers Association (SRA), said it is 'not realistic' to expect to out-perform last year's benchmark.
Instead, she reckons 2009 sales could come in 3-5 per cent lower year-on- year. High rents remain a bugbear for the industry.
And retailers have to contend with other challenges such as price-conscious customers, a limited consumer base and tough competition.
'Retail rents continue to be out of track with the true economic situation,' said SRA's honorary secretary Angelo Augustus. 'We have reports of retail rents, especially in prime areas, still rocketing - despite the slower economy.'
Ms Lau said that because leases are typically locked in for three years, rents are being hoisted 20-30 per cent on renewal - and in some cases by even 50 per cent.
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MBS Shoppes, which covers over 800,000 sq ft of retail and restaurant space, has leased almost 80 per cent of its mall. And as part of phase one, half of the total retail space will be opened in early 2010.
Speaking at yesterday's retail industry conference, Minister of State for Trade and Industry Lee Yi Shyan urged retailers to focus on boosting productivity through innovation and higher service standards.
An inter-agency task force was set up in February this year to look at how to raise productivity in three key services sectors, including retail.
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