http://www.channelnewsasia.com/stories/singaporelocalnews/view/415092/1/.html
SRA fears job losses may surge after Great Singapore Sale
By Timothy Ouyang, Channel NewsAsia | Posted: 13 March 2009 1856 hrs
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SRA fears job losses may surge after Great Singapore Sale
SINGAPORE: The Singapore Retailers Association (SRA) said that industry layoffs could surge as early as June, once the Great Singapore Sale is over.
It had earlier warned that some 20,000 jobs could go, as falling retail sales and high rents are driving more stores to fold, especially when landlords choose not to cut rents.
Singaporeans are not spending despite discounted prices in retail outlets. That is forcing nervous retailers like Wing Tai to monitor their sales on an hourly basis, instead of week to week.
Helen Khoo, executive director, Wing Tai Retail, said: "We need to see how we can improve our sales as well as our staff productivity during those periods when we need most people.
"During down times, perhaps we will arrange for fewer people to be on duty. We do not know what is going to happen, but we hope that the best will come through. But of course, we continue to plan for the worst."
But that may not be enough. Larger retail chains said they are now re-looking expansion plans and may have to close poorer performing stores.
Official data on Friday showed that retail sales in January fell sharply by 12.2 per cent on-year, and sliding 9.9 per cent from December. At the same time, rentals have not come down.
Retailers told Channel NewsAsia that some landlords are, in fact, asking for higher rents – by as much as 45 per cent – on expiring leases.
Lau Chuen Wei, executive director of SRA, said: "Who knows how long this recessionary period will last? This is the critical period when we have to tide ourselves through before we can look for a future.
"If the landlords continue to say that rental rebate is something that they will only look into as a last-resort measure, then the problem facing the retail tenants is – when will they consider the move as a last resort?
"Do they want to wait until their tenants pull down their shutters before they consider that the time to offer rental rebates?"
Some landlords have yet to pass on the government's recently announced property tax rebates to tenants, while others have done so, calling them rental rebates.
Meanwhile, other landlords said they are helping retailers in other ways, such as increasing advertising and promotions or re-locating tenants to smaller stores.
However, retailers said unless they get more direct help to lower costs immediately, more jobs could be lost in the next few months.
Retailers added that malls that are individually owned have been more responsive to their calls for help, while those managed by real estate investment trusts have been less forthcoming.
- CNA/so
SRA fears job losses may surge after Great Singapore Sale
By Timothy Ouyang, Channel NewsAsia | Posted: 13 March 2009 1856 hrs
Photos 1 of 1
Video
SRA fears job losses may surge after Great Singapore Sale
SINGAPORE: The Singapore Retailers Association (SRA) said that industry layoffs could surge as early as June, once the Great Singapore Sale is over.
It had earlier warned that some 20,000 jobs could go, as falling retail sales and high rents are driving more stores to fold, especially when landlords choose not to cut rents.
Singaporeans are not spending despite discounted prices in retail outlets. That is forcing nervous retailers like Wing Tai to monitor their sales on an hourly basis, instead of week to week.
Helen Khoo, executive director, Wing Tai Retail, said: "We need to see how we can improve our sales as well as our staff productivity during those periods when we need most people.
"During down times, perhaps we will arrange for fewer people to be on duty. We do not know what is going to happen, but we hope that the best will come through. But of course, we continue to plan for the worst."
But that may not be enough. Larger retail chains said they are now re-looking expansion plans and may have to close poorer performing stores.
Official data on Friday showed that retail sales in January fell sharply by 12.2 per cent on-year, and sliding 9.9 per cent from December. At the same time, rentals have not come down.
Retailers told Channel NewsAsia that some landlords are, in fact, asking for higher rents – by as much as 45 per cent – on expiring leases.
Lau Chuen Wei, executive director of SRA, said: "Who knows how long this recessionary period will last? This is the critical period when we have to tide ourselves through before we can look for a future.
"If the landlords continue to say that rental rebate is something that they will only look into as a last-resort measure, then the problem facing the retail tenants is – when will they consider the move as a last resort?
"Do they want to wait until their tenants pull down their shutters before they consider that the time to offer rental rebates?"
Some landlords have yet to pass on the government's recently announced property tax rebates to tenants, while others have done so, calling them rental rebates.
Meanwhile, other landlords said they are helping retailers in other ways, such as increasing advertising and promotions or re-locating tenants to smaller stores.
However, retailers said unless they get more direct help to lower costs immediately, more jobs could be lost in the next few months.
Retailers added that malls that are individually owned have been more responsive to their calls for help, while those managed by real estate investment trusts have been less forthcoming.
- CNA/so
