Frasers Centrepoint Trust’s Annual Report: 6 Singapore Retail Trends Investors Should Know  

Frasers Centrepoint Trust (SGX: S08) released its annual report two weeks ago.

The real estate investment trust’s portfolio contains six sub-urban shopping malls that are all located in Singapore. It also holds a 31.2% stake in the Malaysia-listed Hektar Real Estate Investment Trust.

As part of the annual report, Frasers Centrepoint Trust had engaged property consultant Edmund Tie and Company to describe its business environment. Here are six retail industry trends in Singapore that the report shared:

1. A strong Singapore dollar head here

2. Online shopping head here

3. A fighting chance for traditional malls head here

4. New dining and social experiences

“Consumers are more willing to spend on eating-out to experience new dining options and socialise with friends and family.”

Focus is shifting towards experiences within a shopping mall. With that, shopping mall owners such as Frasers Centrepoint Trust have been allocating more space toward food and beverage establishments. Around one-third of the net lettable area of Frasers Centrepoint Trust’s portfolio is dedicated for this. In comparison, only 14.5% of the REIT’s portfolio is leased to fashion-related tenants.

5. The new buzzword: omni-channel

“In-store sales are expected to grow alongside bricks and clicks, as omnichannel marketing gathers momentum.

As brands are integrating both online and offline channels to pursue omnichannel marketing, more “bricks and clicks” concepts are emerging. Shoppers can browse and experience products in store, while purchases can be made online through mobile devices at shoppers’ convenience.

Alternatively, shoppers can buy online and collect their products in the store. This increases the retail touch-points with shoppers.”

Retail stores are looking to integrate the offline experience with the online experience. In this way, shoppers can browse through the products in-store but make their purchases online. Reversely, shoppers can also buy online and collect from the stores at their own convenience.

6. Pop-up stores

“Mall operators are more receptive to pop-up stores.

Since 2015, many online stores have established a physical presence to boost brand awareness. With short-term leases, pop-up stores enable mall operators to refresh the shopping experience, as well as improve occupancy.”

Pop up stores is another means to keep the variety of a mall’s offerings fresh. This is facilitated through shorter term leases. With short leases, new pop up stores can turn up from time to time to allow a mall to offer new experiences and products to shoppers.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns units in Frasers Centrepoint Trust.