With online shopping & food delivery becoming popular, will retail stocks and REITs (Malls) be going downhill?

Hi,

There is definitely some disruption in this space but personally I don;t think it will affect too much in Singapore as compared to United States (US). In US, consumer are required to travel a distance before they reach the retail mall or retailers unlike Singapore where retail malls are close to us. That is the reason why E-commerce is affecting the retail mall and retailer greatly in US as compared to Singapore.

I believe in the future, it will be sort of like an omni channel retail in Singapore. For instance, decathlon singapore offer customer to purchase their product online with delivery or they can choose to collect their product in the store. If they don;t like the product, they can immediately refund it too.

No. I don't think so. This is because food delivery provides convenience and solution to a hungry stomach or just a meal. It can never replace the experience of a restaurant , the dining atmosphere. The experience of a mall , seeing and touching and feeling merchandise, a place to meet friends wine and dine and catch up , a movie or meal dates etc.

Retail malls hence REITS owns chains of malls, provides a good mix and majority food / restaurant and other retail experience. A recent survey also found out that Singaporean still prefer to go to mall than online shopping.

Personally , I see most of the space being converted into restaurant and food establishment since everyone has to eat and mix with different merchant of choices depends on the management planning to attract people coming back.

On the other hand, food delivery simply has too limited choices and I've tried many of them, really cannot make it and it doesn't provides a different or special dining experience.

So all in all it is impossible not to have malls owns by REITS with only online merchants or food delivery.

Simply ask one if he/she able to stay at home all day for 1 month and don't eat out and just depends on food delivery and won't be bored to dead? I guess the answer is there. 😃

Cheers