by Glenn Ong
GO TO Park Mall these days, and you will see more movers than customers. No wonder, since the mall has only about a month left before it closes for redevelopment.
When TMG visited on a weekday afternoon, first floor anchor tenant XTRA Designs – the sole dealer of premium office furniture brand Herman Miller in Singapore – was among other businesses seen packing and moving their wares, while others were holding moving out sales of up to 70 per cent.
Mr Lim Choon Hong, managing director of XTRA Designs, said: “Currently apart from Park Mall, we have another outlet in Winsland House 1. We are relocating to Marina Square as Park Mall was sold to a new owner and will be torn down either this year or the next to make way for a new commercial building.”
However, not all tenants are employing movers to clear out; some are actually moving stocks into their shops. The stocks won’t stay there for long, however.
One of them is Grafunkt, which imports high-end European furniture. Ms Lauren Su, 22, who does marketing for Grafunkt, said: “We already have three outlets, so we shifted all our clearance items to Park Mall so that the prices are in line with other shops.”
Yet, the massive discounts don’t seem to be drawing in crowds. When asked about the mall’s usual clientele, Madam Sandy Goh, 50, who runs The Frame Master with her husband, said in Mandarin: “We don’t usually have crowds here. Many who frequent the mall are “important” people, like the President, ministers, or bosses of large companies – because the Istana and their offices are nearby.”
Despite discounts, all is quiet
“I’ve only had two customers today, but that is already not bad considering that on some days there can be nobody at all.”
It’s not hard to see that the mall isn’t doing well. On two weekday evenings visits, there were at most 10 customers in the mall each time, and not all of them made purchases. Ms Barbara Yang, 30, a salesperson at mattress seller Sealy Asia, said in Mandarin: “I’ve only had two customers today, but that is already not bad considering that on some days there can be nobody at all.”
Ms Yang said that the number of walk-in customers is usually representative of the day’s total sales. “Almost all our customers are walk-in, because when it comes to mattresses, you can’t just call to place an order – you need to try to be able to make an informed decision,” she added.
Sealy isn’t the only tenant that is feeling the heat – or rather, the chill.
Ms Norain Jelani, 30, a sales associate at furniture retailer The Bear Knows, said: “The furniture business is not like the fashion industry; on some weekdays we might not even have more than one customer. However, weekends tend to be better, with around double the number of walk-ins.”
However, Madam Goh, who has been a tenant for 21 years, said that the furniture industry cannot be judged like others. She said: “You don’t see crowds because people only come to furniture stores if they are renovating or buying a new house.”
Ms Jelani agreed. When asked about what draws people to Park Mall, she said: “People usually only come whenever Build-To-Order flats are released. Another key period is when sales and promotions are held. When one of the bigger brands advertises a promotion in the papers, it will bring in crowds that will filter to other shops.”
“Three years ago when we were at Liang Court, the economy was doing well, so we could easily sell a sofa for $10,000. But now, I don’t think we can even sell one for $2,000.”
Yet, it’s not always the lack of discounts, new flats, or the mall’s location that’s responsible for poor sales figures – there are larger factors looming in the background too. Ms Jelani said: “I think whether business is good or not depends a lot on the economy. Three years ago when we were at Liang Court, the economy was doing well, so we could easily sell a sofa for $10,000. But now, I don’t think we can even sell one for $2,000.”
One-stop furniture mall: Bane or boon?
“Park Mall is located in the heart of the city, parallel to Orchard Road and yet is quiet, away from the hustle and bustle of Orchard Road…”
This is despite the fact that Park Mall is the only dedicated furniture mall in Singapore. “There is no competition from other malls because Park Mall is the only one-stop furniture mall in Singapore, and you can’t find the same quality anywhere else – there are no crowds here because this is not a retail mall; there are no cinemas and retail shops here to draw crowds in,” said Madam Goh in Mandarin.
Mr Lim from XTRA agreed. He said: “Park Mall is located in the heart of the city, parallel to Orchard Road and yet is quiet, away from the hustle and bustle of Orchard Road, which suits our trade.”
Indeed, the success and uniqueness of this concept helped some businesses take off.
Mr John Cheng, manager of The V Furniture located on the second floor, said: “We started our very first boutique at Park Mall eight years ago and gained a lot of trust and referrals, which helped us expand to the five boutiques we have today.”
Mr Chung Sew Meng, 42, who is the director of home accessories retailer OVAS Singapore, said that “the positioning of Park Mall as a high-end furniture mall is fantastic”. OVAS, which has been operating in Park Mall for 15 years, has benefited from the mall’s “prime and prominent location”, said Mr Chung.
“There are no food stalls here… How to draw people?”
But the concept of a dedicated furniture mall may also be its Achilles’ heel.
Said Mr Robert Chuang, 71, supervisor of sofa retailer Castilla Furniture, which has been the third floor anchor tenant for 24 years: “There are no food stalls here. The last time we had a foodcourt here is two years ago. How to draw people?”
He said that one reason why the mall had difficulties attracting food vendors was the high rent. “I pay around $10 per sq ft because I’m an old tenant, but food outlets have to pay around $15 to $16 per sq ft,” said Mr Chuang. He added: “The previous owner of the mall, Wing Tai, was more selective of tenants – the current management, not so much.”
From past to present: Fashion to furniture
News of Park Mall’s closure has been circulating for over a year now. Park Mall was sold last December for $411.8 million to a joint venture group, of which its current owner, Suntec Real Estate Investment Trust (Suntec Reit), is a part of. Tenants were informed around five months before the sale, in June, and have been making plans to move – or close – ever since. The 45-year-old, 15-storey mall will be demolished, and in its place, two office blocks and a retail section will be built.
Park Mall, which was built in 1971 and known as the Supreme House, was later positioned as a fashion centre in 1989. It was once home to prominent brands such as Metro and Style Singapore, but later shifted focus to become a furniture mall from 1995. The change was successful, as the mall went from $2 million in losses to $100 million in revenue.
Quality furniture, sturdy friendships
When asked what makes Park Mall different from other malls with furniture retailers, Madam Goh said: “The things sold at Park Mall are unique in design and higher in quality. When you say you’re buying from Park Mall, people will have a different impression of the furniture you have. But most people come here only to walk around and reminisce the past.”
For Mr Lim, whose Park Mall outlet is 22 years old, it was the location and branding of the mall that attracted him. “When Park Mall was refurbished 22 years ago to be a city furniture and furnishing centre, we were offered a premium location on the ground floor which was street-facing. It was a rare opportunity for us,” he said.
Yet, it’s not just the furniture which boast a high quality – the bonds forged between tenants are equally strong. Kith Cafe, which occupies a space on the first floor of the mall, will be moving to Marina Square, where it will share a space with its current neighbour, XTRA Designs.
“Our cafe, which values good design, stocks furniture from XTRA. Similarly, Kith supports XTRA by catering for their events, big and small alike.”
Ms Jane Hia, founder and owner of Kith Cafe, said of the relationship between the two businesses: “Though we are in different industries, both Kith Cafe and XTRA Designs are in the lifestyle business, so our brands complement each other very well. Our cafe, which values good design, stocks furniture from XTRA.
“Similarly, Kith supports XTRA by catering for their events, big and small alike. Kith Cafe offers a convenient space to facilitate meetings over good food and coffee,” she added.
And it isn’t just the tenants who have grown close. Those who work in nearby offices and buildings, including the office space within Park Mall, have become loyal customers of the cafe. Said Ms Hia: “We have patrons who work in Park Mall who grew to become regular customers. As a cafe, we have made many valuable friendships in this mall.”
When asked what she thinks is special about Park Mall, Ms Hia said: “Kith Cafe at Park Mall has been popular for many reasons like huge capacity, accessibility of public transport, and parking availability, among other things. What is special about Park Mall is the location, with Fort Canning behind us and the giant trees surrounding us.”
For others, the mall holds a special place for their business because it reminds them of their early days. “I think because this is our oldest and also our first official retail outlet, the mall holds some good memories,” said Ms Su of Grafunkt.
Despite the friendships and good memories, competition remains stiff.
Mr Ben Teo, 53, sales consultant at Italian furniture retailer Furniture Club, which has been in Park Mall for seven years, said: “The furniture industry is very saturated. I would say that in order to survive, you need to make at least 40 per cent profit.” He added that the company depends on about “60 to 70 per cent of regular customers” for business.
“Our friendships aside, business is still business. In this trade, we have an unspoken rule, which is that we cannot step into each other’s showrooms,” Mr Teo added.
For the better?
“When Park Mall closes, it will filter shoppers islandwide…”
Ms Jelani from The Bear Knows said that the retailer is “in the process of moving to The Centrepoint”. They had previously moved from Liang Court to Park Mall, where they have remained for three years. For The V Furniture, Mr Cheng said: “We have opened a new outlet at Plaza Singapura, and we are also looking for a new showroom.”
However, Ms Yang from mattress retailer Sealy said that the company isn’t in a rush to seek out a new outlet or sell its stock. She said: “I’m not entirely sure, but it’s most likely going to close since we have a warehouse to store our stock.”
Indeed, not everyone is upset with its closing. “It’s for the better that the mall is closing,” said Castilla’s Mr Chuang. He added: “When Park Mall closes, it will filter furniture shoppers islandwide so that they don’t just shop in the town area.” Mr Chuang added that Castilla would be moving to Big Box, located at Jurong East, because they “couldn’t find another place in Orchard this big”. (Castilla takes up as many as five spaces.)
“Of course it’s a pity.”
“We believe we will continue to make new friends and keep old ones despite the move.”
For others, however, the mall’s closure is a pity for the furniture scene. On what his thoughts were on the mall’s closure, Mr Lim from XTRA Designs said: “Of course it’s a pity. We’ve been here for almost a quarter of a century! On the other hand, we are also excited about moving to a new location and embarking on a new beginning.”
Said Mr Ray Lee, a senior sales executive at curtain and fabric retailer Jespirit Collections: “It’s a pity because this is the only furniture mall in the Orchard area. When it closes, there will be no more such malls here.” However, he added that while the store has been at Park Mall for a good 16 years, “we have other outlets, so the closure of the mall is not a really big deal for us”.
Madam Goh from The Frame Master, which is the only shop in Park Mall to offer artworks and framing services, said that she is still considering her options. “We’re experimenting with going online. My husband and children are helping me with that,” she said in Mandarin.
For Kith Cafe’s Ms Hia, moving to Marina Square will be an exciting change, though that does not mean that the cafe will forget the bonds forged at Park Mall with tenants and customers alike.
She said: “We enjoy the synergy between our businesses, and don’t see why we should not continue to do so. We believe we will continue to make new friends and keep old ones despite the move.”
Additional reporting by Andrea Wang.
Featured image and images by Najeer Yusof.
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