Singapore’s curated F&B, luxury, and specialised services remain resilient as international brands snap up vacant F&B outlets

SINGAPORE: Vacated food and beverage (F&B) spaces are being snapped up by major international brands, yet Singapore’s curated F&B concepts, luxury goods, and specialised services remain resilient, thanks to consumers’ appetite for unique, in-person experiences, Singapore Business Review reported, citing a report from Knight Frank Singapore.

Analysts said international visitor arrivals stayed strong at 3.3 million in July and August, compared to just 2.8 million in April and May.

Leisure and business travel, boosted by MICE (meetings, incentives, conferences, and exhibitions) events and overseas marketing, continued to support retail activity in the city-state despite the Singapore Grand Prix schedule’s shift to October this year.

Total retail sales in July and August, excluding motor vehicles, rose to S$7.2 billion, up from S$6.9 billion in April and May, as sales of recreational goods jumped 11.8%, followed by furniture and household equipment at 7.9% and watches and jewellery at 7%.

Government vouchers distributed in July further encouraged discretionary spending, the report noted.

While some retailers have exited the industry amid higher costs and operational pressures, vacated units which were quickly taken up helped maintain occupancy, supporting modest rental growth. In the third quarter, prime retail rents rose 0.5% quarter-on-quarter (QoQ) to S$28.40 per square foot per month.

Currently, e-commerce makes up about 12% to 15% of total retail sales, although physical stores remain key for luxury, dining, and lifestyle experiences. Cross-border spending also rose as Singaporeans spent an estimated S$1 billion in Johor in the first eight months of the year.

Analysts advised retailers and landlords to focus on providing consumers with distinct offerings and curated experiences, while rental growth is expected to ease to between 1% and 3% a year amid ongoing market pressures. /TISG

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