Online to Orchard Road: why some Singapore e-retailers are opening physical shops amid the coronavirus pandemic

While Covid-19 has taken a toll on the island nation’s retail sector, it has also created opportunities for brands to expand their offline presence

A combination of cheaper rents and the ‘tactile, communal’ draw of physical spaces has seen newer, nimbler firms succeed even as some older companies falter

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People cross a street in Singapore’s shopping district of Orchard Road. Photo: Reuters

Published: 8:00am, 1 Dec 2020Updated: 12:15pm, 1 Dec 2020

Even in an atypical year for retailers, Jay’s business has taken an unusual trajectory. In August, as the economic fallout from the Covid-19 pandemic forced many businesses to fold, he launched Got Drip?, an online coffee business that also sold its beverages at a men’s barbershop.

While other companies moved their operations online to cut overhead costs such as rent, the former sales director did the exact opposite. Early next year, Got Drip? is set to open a coffee bar in Geylang, a red-light district in eastern Singapore that has seen rapid gentrification in recent years.

While more people are staying at home and opting for food deliveries, opening a physical store seems counterintuitive. But Jay – who asked to be known by that name for this piece – believes the move will take his business to the next level.

“It’s all about the quality of the product. The best way of enjoying coffee is to have it fresh, and we believe that people will also want to go out and enjoy fresh coffee,” he said. “Opening a physical store is a natural step towards building a commercially sustainable coffee brand.”

Footfall in shopping malls and stores has plunged in the wake of the pandemic, forcing many retailers to pivot to e-commerce. But, like Jay, some online business owners in Singapore are bucking this trend by going the bricks-and-mortar route. Others, taking advantage of pandemic-induced lower rentals, are expanding their offline presence.

Robinsons closed its last two department stores in Singapore in October. Photo: Bloomberg

Their moves come even as the retail industry in Singapore is suffering heavy losses – the latest figures, for September, show a 10.8 per cent year-on-year drop in sales. The same month also saw 457 companies cease operations, the highest number in 10 months. Even established brands have not been spared.