AFTER 10 years of relative stagnation following the Asian financial crisis, Singapore's retail industry is suddenly expanding fast.
Between now and the New Year, no fewer than seven new retail places will open in Singapore - an average of nearly one launch a week.
'This boom is long overdue,' said Mr Pua Seck Guan, chief executive of CapitaLand's retail division.
Mr Pua, along with other developers and analysts, say higher consumer spending, more tourist arrivals and a brighter economy are fuelling the surge in shop space.
Consumer spending rose 0.2 and 2 percentage points respectively in the first two quarters of this year, while analysts forecast tourist arrivals to increase by 5 to 7 per cent every year until 2009.
This year, the Government expects the economy to grow by between 6.5 and 7.5 per cent.
Among the line-up of new retail spaces, VivoCity is the undisputed star, but there is no shortage of supporting acts.
Connectz at United Square, Velocity at Novena Square and Ikea's Tampines outlet will all be open by the end of the month.
Square 2 at Novena, Courts in Tampines, Centrepoint's new wing in Orchard Road and the upper floor IMM building's annexe in Jurong will follow shortly after. All in, that's 185,800 sq m of extra shopping space this year, the equivalent of two Suntec City malls and 28 times more space than was added last year.
And analysts are expecting still more.
Knight Frank associate director of retail Elaine Chew estimates that retail space will shoot up 30 per cent by 2010 - from 2.9 million sq m at the start of this year to 3.7 million sq m.
But will there be enough shoppers to go around?
Singapore Retailers Association executive director Lau Chuen Wei does not think so.
'We used to be the shopping destination of South-east Asia, but our neighbours like Thailand and Malaysia have caught up. We don't have the draw we used to,' she said.
She is also concerned that the already labour-strapped retail sector will struggle further to find good staff.
'It's a nice dream, but we have to be real,' she said.
Most industry experts, however, were optimistic that tourists will fill the gaps left by the lack of local shoppers.
Ms Chew said: 'We should be able to meet the supply, as long as the economy stays good and consumer spending and tourist arrivals keep going up.'
CB Richard Ellis' director of retail services Mavis Seow agreed, citing the upcoming integrated resorts and the rejuvenation of Orchard Road as factors that would attract more visitors here.
Mr Anthony Yip, president of the Association of Shopping Centres, pointed out that the ratio of retail space to people is relatively low in Singapore.
Singapore had only 0.7 sq m of retail space per head last year, only half of that in Hong Kong.
'Singapore cannot be considered over-shopped,' he said. Mr Pua said it is important to retain 'a sense of the market and the demand'.
'We are okay now, but it's important that we don't blindly pump in supply of retail space,' he said.
jeremyau@sph.com.sg
'We used to be the shopping destination of South-east Asia, but our neighbours like Thailand and Malaysia have caught up. We don't have the draw we used to.'
SINGAPORE RETAILERS ASSOCIATION EXECUTIVE DIRECTOR LAU CHUEN WEI, who doubts that there would be enough shoppers to fill up the new malls
