Hang Cheng si beh ho! More guud years ahead!

[Apollo]

May 11, 2008

Where have all the customers gone?

Many are cutting back on spending in wake of rising food prices, possible US recession

By Shuli Sudderuddin

 

 

When private banker Jeremy Ching went to Robinsons' yearly sale last week, he found the crowd at the Centrepoint outlet thinner than last year's.

'Last year, it was so crowded that I didn't get to try on anything. This year, I actually bought something,' said Mr Ching, 24.

 

The Sunday Times did a check with 20 shoppers in various city locations and found that, like Mr Ching, many were holding on more tightly to their wallets.

 

Fifteen said they had been going out less often in the last two months. Reason? Gloomy news about rising food prices and a possible recession in the United States.

 

When we spoke to 100 retailers and food and beverage outlet managers, 59 said they were seeing fewer customers, and at least 10 said business was down by 10 per cent or more.

 

The rest - 41 shops in large shopping malls, especially beauty and retail electronics outlets - still saw brisk business.

 

A spokesman for movie memorabilia shop PopcornPop in Suntec City said weekend sales have dropped by up to 50 per cent.

 

Noting that the Great Singapore Sale will start in two weeks' time, he said: 'I'm sceptical about spending going up during the Great Singapore Sale. Spending won't increase.'

 

Some shoppers echoed this view. Photographer Colin Koh, 28, said: 'Why buy during the sale? I have to prioritise and pay for necessities like petrol for my car.'

 

At Raffles City, customer service agent Christina Simon said: 'There used to be more people in malls but things are getting more expensive. I tend to eat out less now - twice a month rather than every weekend as I used to.'

 

Department of Statistics' figures show that on a year-on-year basis, retail sales declined by 1.3 per cent over a year ago for the month of February.

 

Also, the latest Business Expectations Survey shows that the services sector is generally cautious about business outlook for April to September this year.

 

From the survey, 29 per cent of retail firms predicted slower business during this period.

 

At Suntec City, accessories pushcart operator Wendy Lee has noticed a steep drop in takings compared to the same period last year.

 

'We could make about $400 daily last year but this has decreased by about 40 per cent,' she lamented.

 

Mr Suzuki Nobuaki, manager of Tonkichi Japanese restaurant, which has outlets in Ngee Ann City, Isetan Scotts and Suntec City, said: 'Our customers have decreased by 5 to 10 per cent compared to last year. It looks like people are saving on food to cope with the cost of living.'

 

At Clarke Quay, walkways and restaurants were empty approaching dinner time last week.

 

Ms Junydah Madon, marketing, event and operation manager for the Tapas Tree, cited the heatwave as one reason for the empty seats outside the restaurant. 'Customers prefer the air-conditioning inside.'

 

But she added: 'Business has been quite slow at Clarke Quay and customer flow dropped last week because it is the off-peak season.'

 

Mr Benny Lee, marketing manager for Zingrill which runs restaurants such as Breeks, said there has been a 10 to 15 per cent drop in sales in Breeks outlets in town.

 

'Our pricing is not expensive, so it could be that fewer people are eating in town because fewer are shopping there,' he speculated.

 

New retail entrants are also feeling the pinch. At least three new businesses contacted said that they were not doing as well as projected.

 

Mr Sreeram Muthiah, shift manager at smoothie and coffee cafe Maui Wowi in Suntec City, said that weekends see more business, but sales have not picked up as quickly as anticipated since the cafe opened three months ago.

 

'On Sundays at lunch time, we are sometimes only half-full,' he said.

 

Economist Selena Ling, head of treasury research at OCBC, felt that the pessimism could be due to the impression that the global economy is in bad shape.

 

'Last year's optimism is wearing off. Because people have to pay more for staples, they'll cut down on discretionary spending like shopping and eating out,' she said.

 

Ms Lau Chuen Wei, executive director of the Singapore Retailers Association, said March, April and May traditionally see seasonal dips. But she added that higher domestic spending would be a booster.

 

'Higher economic activity within a country will not only boost sales but also the entire nation's economy,' she said.

 

One shopper seemed to be in tune with that view. Mr Eric Xu, 25, who works in advertising, still goes out to restaurants and shops.

 

'I'm not going to let gloomy predictions change my life,' he said.

 

 

Additional reporting by Becky Lo and Stacey Chia

 

[email protected]

 

http://www.straitstimes.com/Free/Sto...ry_236239.html

[Kelpie]

I still buy things in shopping centres and makan in restaurants leh but only in JB. I've not shopped in Orchard road for years. I have this thought that Orchard is meant for tourist not for commoners like me.

 

Regards,

[Apollo]

there's no such thing called commoners.. only peasants.

[Kelpie]

One shopper seemed to be in tune with that view. Mr Eric Xu, 25, who works in advertising, still goes out to restaurants and shops.

 

'I'm not going to let gloomy predictions change my life,' he said.

 

Same here, enjoy life in JB .

 

Regards,

[Picanto]

his han cheng everyday also good. can afford to meet mee siam with bug hums.

[Nus24]

pushcart earns $400 per day! One month got $12000.

Wah kao what the fish am I doing in nus?

Now 40% less still can earn $7000 pm, not bad at all.

[Kelpie]

pushcart earns $400 per day! One month got $12000.

Wah kao what the fish am I doing in nus?

Now 40% less still can earn $7000 pm, not bad at all.

 

Yalor, beat many MBA or PhD out there .

 

Regards,

[Application9999]

Bro...so what u think? I not degree holder but I earn more than my friend that went o n to study like hell and obtain a degree..btw..am employee hor not business man hor..so is how u work you way up and not how much u study....some brain dead scholar simply got no brain and can't think....

[Kelpie]

Bro...so what u think? I not degree holder but I earn more than my friend that went o n to study like hell and obtain a degree..btw..am employee hor not business man hor..so is how u work you way up and not how much u study....some brain dead scholar simply got no brain and can't think....

 

This one I believe but must also look at what kind of profession one is in.

 

Regards,

[Application9999]

in technology industry but in sales....but not commission based hor..

[Throttle2]

you are in NUS for an education, i hope.

Education may lead to money but education does not equal money.

 

since you dont even know why you are there, perhaps you should consider dropping out and "pushing cart"?

[Scion]

private banker Ching feeling the pinch?

 

jialat.. then what abt poor engineer like me?

[Kelpie]

in technology industry but in sales....but not commission based hor..

 

That is the thing, sales! so long you reap in sales and profit for the company, who cares what qualifications you have .

 

Regards,

[Throttle2]

show me a private banker in Singapore who is only 24, and i'll show you mee siam with hum.....nowadays, anyone who works in a bank is called a banker?

 

i also can call myself a banker liao......

[Nkps]

pushcart earns $400 per day! One month got $12000.

Wah kao what the fish am I doing in nus?

Now 40% less still can earn $7000 pm, not bad at all.

u better stop NUS, your father Leepee looking for bargain COE lately, muz be you and your good for nothing BF and 4 of your mother fault

[Tigershark1976]

pushcart earns $400 per day! One month got $12000.

Wah kao what the fish am I doing in nus?

Now 40% less still can earn $7000 pm, not bad at all.

 

$400 per day is sales, not net margin... after minus off $4000 to $5000 rental per month, around 1/5 product cost price, left $5600/month, minus off salary + comm of min $1600 for sale person (mall usually requires the operator to opens from 10am to 10pm, 7 days week), left 3k to 4K max for your pay + profit only my friend...

[Application9999]

guess this show NUS don't teach their student how to calculate sales revenue vs net profit vs costing....hahaha!! Think every single cent from sales is immediately translate into your salary... think should just quit NUS and learn from you....''The University of real world''

[Gearoil]

pushcart earns $400 per day! One month got $12000.

Wah kao what the fish am I doing in nus?

Now 40% less still can earn $7000 pm, not bad at all.

 

LOng time no see...err...I mean see you post....I missed you! ...Well..Cum..

 

Be a good girl and study lah...just in case your 'business push cart dream' didn't work out, can always fall back to join Capital Land with your NUS deg mah!