EVALUATION AND ANALYSIS OF FACTORS AFFECTING RETAIL PEFORMANCE

Abstract

Retailers have faced stiff competition over the past few years and many registered negative earnings while others were forced to cease operations. t In view of the current retail conditions, this study seeks to evaluate the performance of listed retailers as well as HDB retailers. The study also attempts to analyse the main factors that have contributed to the poor performance. The study was approached from an empirical perspective, relying on surveys, statistics and other published data. The findings revealed that turnover for most listed retailers is falling and many have suffered losses. To remain competitive, retailers need to consolidate, downsize, reposition and restrategise. They need to focus on crucial avenues for generating revenue. Approximately 53% of HDB retailers reported poor business citing competition and a combination of factors as reasons for poor business. An analysis of the factors that contributed to the poor outlook found that tourist arrivals are declining rate and they are cutting down on their expenditure. This will have a great impact on the retail market, as tourists constitute a substantial portion of their clientele. The growth in the supply of retail space far outstrips the retail sales index for the past years. This implies that the number of competitors are increasing at a faster rate than sales turnover. If this trend were to continue, many retailers would be forced out of business. Many Singaporeans find shopping in Singapore extremely expensive and prefer to do their shopping in the neighbouring cities. This further aggravates the poor retail market and retailers will have to price their products competitively providing value for money and control business cost in order to survive in this saturated market.