Retail sector in Singapore is one of the most important sectors in the economy. Retailing plays a pivotal role in making Singapore a viable place to travel and reside. The retail sector consists of retail outlets, hypermarkets and small specialist stores. International chains compete with domestic stores and retail chains, providing a retail mix for the customer, which has given the country the tag of being a "shopper’s paradise".
The spending habits of the Singaporean’s have resulted in the development of niche retail trends. Along with general food and non food outlets, specialized outlets have also developed in the recent years.
Hypermarkets
They have developed recently in Singapore, but are already popular among the retailers. The Hypermarket not only offers one stop shopping experience, but also provides value for money. Carrefour the French retail giant has opened a hypermarket in Singapore in 1997.They are facing severe competition from Dairy Farm, which has come up with three hypermarkets in Singapore.
Supermarkets
Supermarkets chains target a different market segment. For example Jason's Supermarket and Tanglin Marketplace target the premium segment. Cold Storage is the second largest supermarket in Singapore, targeting the middle and upper income consumers.
Challenges
In spite of its relatively small size, Singapore has a significant presence of retail outlets. In fact the ratio of retail space to population is higher than even Hong Kong. Relatively low entry barriers have made it easier for new players to enter the retail market. Competition is severe among small and medium sized enterprises.
High Cost and Low Productivity
In Singapore, the cost of doing business is relatively high; real estate is a premium in Singapore. There is still scope for improvement in productivity for small sized enterprises.
Retail Trends in Singapore
|
Indicators
|
2002
|
2003
|
2004
|
2005
|
2006
|
|
No. of Establishments
|
18,412
|
18,965
|
18,696
|
18,430
|
18,587
|
|
No. of Workers
|
80,379
|
84,243
|
86,694
|
91,866
|
94,342
|
|
Operating Receipts ($m)
|
17,105
|
17,633
|
18,811
|
20,956
|
22,143
|
|
Value-added ($m)
|
2,455
|
2,475
|
2,749
|
3,052
|
3,405
|
|
GDP Contribution (%)
|
1.55
|
1.54
|
1.51
|
1.55
|
1.57
|
