‘It’s not as good as last year’: No Christmas cheer for some retailers along Orchard Road

SINGAPORE: Some retailers along Orchard Road are noticing a quieter year-end, with thinner crowds and the traditional holiday season spending splurge missing in action.

Half of the 20 sales representatives who spoke to CNA on Friday (Dec 22) said they have seen a drop in footfall this month, with sales taking a hit compared to the same period last year.

One reason could be that many Singaporeans have gone overseas for a year-end holiday. At the same time, tourist arrivals have not fully recovered, the retail representatives said.

Other contributing factors include concerns about inflation and the recent spike in COVID-19 cases, as well as a persistently-weak Malaysian ringgit luring locals to take their spending across the Causeway.

Ms Mademoiselle Recto, who works at the Converse store in Ion Orchard, noted that daily takings at the till have dipped to about S$3,000 (US$2,260) this month, down from a range of S$4,000 to S$5,000 last year.

“It’s not as good as last year. (We) don’t see many people around,” she said.

In neighbouring Wisma Atria shopping mall, a salesperson at Porter International said business on weekdays has been generally slow this month. Weekends may see around 20 to 30 “serious” shoppers, but only half make an actual purchase.

“Maybe (it’s) because people are overseas, maybe (it’s) because of the economy … It’s been very slow for us, even slower than (the) last few years,” said the salesperson who declined to be named.

Over at the Isetan department store in Shaw House, a shoe promoter by the name of Serena said footfall and sales are down by about 30 per cent this month, versus the same period last year.

“It is very quiet in Orchard Road,” she told CNA. “I think many people (have gone) on a holiday or maybe people are scared of COVID-19.”

A fellow promoter, Mr Tan, chimed in to say that sales have also been subdued due to a lacklustre tourist crowd.

Latest figures from the Singapore Tourism Board showed a fourth straight month of declines in Singapore’s international visitor arrivals for the month of November. At 1,100,459, it was a 2.3 per cent dip from the 1,125,954 visitors in October, albeit still 34.8 per cent higher than the 816,340 visitors recorded in November last year.

Industry players and observers have attributed the slower recovery in tourist numbers to higher inflation and the stronger Singapore dollar.

The weak Malaysian ringgit is another headache for local retailers. The Singapore dollar last traded at 3.4945 against the ringgit, according to Bloomberg data on late Friday afternoon.

“Not just December, the whole second half of the year has been quiet,” said Mr Amit who is the senior brand manager of a fashion brand located within Isetan department store.

Walk-in customers have slowed, with “only a few days of good business if there are good discounts”, he said. “I would say business has been down by 30 to 40 per cent for the second half … The weak ringgit is a big issue.”

Shoppers are also thinking twice about spending amid high inflation, by opting to go for discount products or buy in smaller quantities, said several sales representatives.

But it is not all bleak along the country’s prime shopping belt. There are retailers who have seen sales holding up so far in December.

Ms Syamira, a part-timer at sneaker brand Superga in Wheelock Place, said: “There are good days and there are also days when sales are quieter. But that is normal like any other month.”

The start of a new school year around the corner appeared to have boosted sales at another footwear shop Vans.

“It is only quiet in the morning but after that, I would say it can get pretty busy, especially this week with families slowly returning from their holidays,” said a sales representative at the store in Ion Orchard.

The toys section at Isetan was also fairly crowded when CNA visited on Friday afternoon. One of them was Ms Christine Lim, who was in town for some last-minute Christmas shopping.

“I’m definitely conscious about spending too much but it’s Christmas. I think it’s alright to pamper myself and my friends and family with a few gifts,” she said.