Singapore retailers stunned by Covid measures such as sales drop up at 70%

People inside a shopping mall in Singapore on May 15, 2021, forward of tightening of restrictions over concerns of a rise in Cases of Covid-19 coronavirus.

Roslan Rahman | AFP | .

SINGAPORE – Singapore’s brick and mortar businesses have been hit hard from Covid-19 and retailers they saw sales plummet in meaningfully in as for result of Covid restrictions, according to a retail trade body in Country.

Sales plummeted between 30% and 70% for some retailers from the beginning of the pandemic, according to Rose Tong, an executive director of the Singapore Retailers Association (SRA), a non-for-profit organization with 420 members in different sectors like fashion, electronics, beauty and well-being, as well as food retailers and supermarkets.

With each round of stricter restrictions, sales have declined between 50% and 80%, he told CNBC’s “Squawk Box Asia” on Thursday.

Singapore has reintroduced tougher restrictions against Covid-19 again on Thursday, like the number of Cases of covid climbed due to different clusters in karaoke bars and wet markets. The measures increased – which include the ban of have dinner-in services and limitations public gatherings for two – will last until 18 August.

According to ministry of Health, there were 170 new cases of COVID-19, of of which 162 were locally transmitted infections. The number of new cases in the community it grew rapidly and reached 883 cases in the past week of 127 cases the week before, according to the ministry report.

As a result of continued restrictions, buyer traffic decreased in significantly, but retailers they are still paying full cost of rent, he said.

“Let’s hope the owners are more proactive and would make a fair share of the burden, “he said, adding that some business the owners try support from their owners to offer rental discounts.

Pin up online sales

Friday, the government announced a support package worth 1.1 billion Singapore dollars (808 million dollars) a help businesses and workers affected by the ed latest restrictions.

They included a job support scheme for sectors like restaurants and gyms affected, in addition to those in the retail and entertainment sector.

Other measures include support for Local retailers get on-board Local online retail platforms.

During the Great Singapore Sale shopping festival from June to July, SRA collaborated with Lazada e-commerce site to be upgraded online billed. This helped drive up sales and there has been a strong spread in home deliveries, Tong said.

As companies have begun to adopt digital strategies to improve sales, there are many of challenges come on, her added.

“We do face very intense global market competition from the market all places over the world. The cost is high with deliveries and the cost of merchandise, “he said.

Retail accounts online for less than 20% of sales for brick and mortar businesses, Tong said.

Members of the SRA hires collectively more of 80,000 workers and have an annual income of more of 32 billion Singapore dollars ($ 23.5 billion), according to the website.

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