SINGAPORE (EDGEPROP) - Athleisure and e-retailing is set to drive future retail demand amid overall retail gloom, says Cushman & Wakefield (C&W).
(Source: C&W)
The trend for athleisure is booming, driven by broad shifts in the attire people are wearing due to flexible work arrangements and a greater focus on health and active living over the pandemic, notes the research consultancy in its 3Q report on the retail market.
Among major moves in the space, sportswear and footwear retailer Footlocker has opened its sixth and largest store of 23,000 sq ft at Orchard Gateway @ Emerald.
E-retailers that have thrived due to the rise in e-commerce may also pursue an online-to-offline strategy, taking advantage of declining rents to open a physical store to boost sales and brand recognition, it says. For instance, fashion retailer Love, Bonito opened its fourth store at Vivocity, occupying 4,300 sq ft.
(Source: C&W)
However, the broad retail landscape remains challenging. Prime retail rents fell across the board over 3Q2020. Rents in Orchard fetched $33.73 psf per month, falling by 2.9% q-o-q, while rents in Other City Areas declined 3% q-o-q to $20.25 psf per month.
Suburban retail rents were relatively more resilient, falling 2.2% q-o-q at $30.85 psf per month, due to the demand from nearby residential catchments.
C&W expects the shuttering of more retail stores to continue putting pressure on rent levels. Fashion brands Topshop and Topman had in September closed down their last Singapore outlet, shifting their business outline.
So far, first-tier malls have been able to hold on to their rental levels due to high occupancy levels and the ability to attract new tenants, it adds. Weaker malls, however, are in distress.
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