Physical stores have been struggling in the modern retail landscape and closing as more customers turn to e-commerce platforms for comfort and convenience. The COVID-19 pandemic is now over, so the situation has changed, and physical stores are once again becoming popular.
Several online-only businesses that had expanded their offerings into physical stores during the pandemic are now facing layoffs and restructuring as a result of this. Despite the fad, H&M Singapore has declared that its location in ION Orchard will close on March 12 of 2023.
The Swedish fast fashion retailer previously closed its locations in Tampines and Punggol in 2020 and 2021, respectively. With the most recent closure, there will only be eight H&M locations in Singapore. It is not yet known if the company intends to reopen additional locations here. There are other brands that have left Singapore in addition to H&M’s closure of its ION Orchard location. Marks & Spencer, a British lifestyle retailer, recently disclosed plans to close its Jewel Changi Airport location on February 19.
Retail Shopping Post COVID-19
According to a study, which included more than 5,000 respondents from Singapore, Thailand, Vietnam, Malaysia, and the Philippines, physical stores will still account for a significant portion of holiday fashion spending. Despite the simplicity and convenience of online shopping, about 53% of people who plan to spend money on fashion are more likely to purchase items from physical stores. While 28% plan to shop on marketplace e-commerce platforms, 18% plan to do so through the websites or apps of brands or fashion retailers.
Surprisingly, compared to other Southeast Asian nations, Singaporeans are the ones who are most likely to shop in person (66%). But given the potential decline in sales as people cut back on discretionary spending in the face of an unsteady economy, and landlords raising rents as foot traffic rises, this trend is not altogether unexpected.
New Retail Experience
In-store shopping will continue to exist, but the retail industry will need to operate differently than in the past, claims a McKinsey report from 2021. In the race for same-day delivery, the report emphasises the necessity of online-to-offline (O2O) services and their role as strategic assets. Physical stores ought to be a significant part of an omnichannel player’s network in the future.
The managing director of VMLY&R Singapore, Rhys Taylor, commented on the topic and said that physical retail experiences can no longer be separated from other channels.
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Physical stores are now a part of a much more complex customer journey, whereas in the past, TVCs, billboards, print ads, and prime real estate were some of the few (disconnected) drivers for maximising footfall.
He contends that in order to better serve their customers, brands must first comprehend why they visit their establishments in the first place.
