Several Parkway Parade mall tenants leave or downsize amid rising rents
SINGAPORE - British retailer Marks & Spencer will be closing its Parkway Parade store on Feb 16, marking another major departure from the 42-year-old mall in Marine Parade.
Its impending closure after more than two decades at the mall comes amid rising rental costs and ongoing concerns about foot traffic among tenants at the shopping complex, which opened its doors in 1983.
At least seven other tenants have vacated in the past year, with at least one citing rental increases of up to 30 per cent, following the opening of Marine Parade MRT station on the Thomson-East Coast Line in June 2024.
These are Ole Ole, a Malay kueh stall that had been at the mall for more than 30 years; home-grown restaurant chain Putien, which closed in September 2024 after 15 years; eatery Go Noodle House; household appliance firm Dyson’s demo store; convenience store 7-Eleven; restaurant Treasures Yi Dian Xin; and Gadget Solution, which sells game consoles and mobile phone accessories.
Despite the increase in foot traffic reported to some of the retailers by the mall’s management Lendlease, they told The Straits Times they have not seen a corresponding increase in their sales.
The ongoing construction of an underground linkway to Marine Parade station from the mall’s basement, due to be completed in 2027, is also expected to affect business further, said the tenants.
Marks & Spencer, which opened its second-floor store at Parkway Parade in May 2004, told ST that its upcoming closure is part of an ongoing effort to refine its store portfolio and focus on key locations and the online business in Singapore.
Although the company did not specify how many staff would be affected, a spokesperson said: “We are committed to supporting all affected colleagues through this transition. This includes offering opportunities for redeployment to other stores or roles, where possible, as well as providing resources and assistance.”
Mr Xu Hwa Heng, 41, owner of Gadget Solution, which was on the basement level, said his rent was raised to about $14,000 – a 30 per cent hike – when his lease expired in January 2025.
After nine years of running the business at Parkway Parade, he decided to close shop, citing the unsustainable rental costs.
“Even after the MRT started operation, I didn’t see a rise in footfall. Now, with the basement entrance facing my shop closed (to facilitate the construction of the linkway), my business would have suffered. It would be hard for me to survive if I had to pay such high rent,” said Mr Xu.
Next door, Mr Tang F.Y., who runs Pavilion Optics & Contact Lens Centre, said: “Each time my lease is renewed, the rent goes up. For older businesses like mine that rely on loyal customers, a significant rent increase is a real struggle.”
Mr Tang, 69, said that since he started his business in December 1983, his rent has climbed from $3,500 a month that year to more than $15,000 now.
Responding to queries from ST, Ms Jenny Khoo, head of retail and workspace management at Lendlease, said rental adjustments take into account factors such as market demand, tenant performance and overall economic conditions.
“Responding to changing market preferences, Lendlease aims to strike a balance between supporting long-time tenants and ensuring the mall remains vibrant and competitive, with a tenant mix that caters to the evolving needs of shoppers,” she said, without confirming the extent of the rental hikes reported by tenants.
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