Reinventing Orchard Road: What will it take to future-proof Singapore’s premier shopping street?

Reinventing Orchard Road: What will it take to future-proof Singapore’s premier shopping street? As shopping districts in other countries grow in their appeal, Orchard Road could be left behind unless there is a collective effort to reinvent it, analysts said. SINGAPORE: For decades, Orchard Road was, to many Singaporeans, an iconic shopping belt where global lifestyles converged and where trends were set. It was the destination that welcomed the country’s first McDonald’s at Liat Towers in 1979, where the first supermarkets like Cold Storage and Fitzpatrick’s made their mark in Singapore, and where Japanese emporium Yaohan redefined what a store could be. For others, it was also the place for bold, new experiences. At night, the strip became a hive of activity – known in the 80s and 90s for the nightclub Xanadu, theatre-restaurant Tropicana, and the discotheques Rumours and Sparks. Stepping onto the 2.2km-long boulevard also meant experiencing a concentrated showcase of global brands that was not replicated anywhere else in the region. But today, this unique selling point has largely faded away, industry observers and Orchard Road stakeholders told CNA. E-commerce marketplaces have permanently altered consumer habits, and regional shopping districts in Shanghai, Seoul and Bangkok are siphoning tourists away with sprawling flagship stores of international brands alongside successful local retailers. Within Singapore, the Marina Bay area and Changi Airport have become retail destinations in their own right, and so too have neighbourhood enclaves like Tiong Bahru and other shopping malls in the heartlands. With consumers spoilt for choice, Orchard Road faces an existential crisis, said experts. “Unless there is a collective effort to reinvent Orchard Road and differentiate itself from other shopping districts, we may find ourselves slowly losing our edge,” said Ms Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore. The Singapore government is fully aware of these shifting dynamics. Over the years, it has sought to make Orchard Road competitive through successive rejuvenation schemes that started with an inter-agency commission in 2005. As a result, the infrastructural landscape around Orchard Road has gradually transformed. A board sports facility opened in 2023, and a carpark near Grange Road is being turned into an events venue that is slated to open in the coming months. Further changes are afoot. Last month, the Singapore Tourism Board (STB) said it would start a new Orchard Road Rejuvenation Initiative from the middle of the year, which invites stakeholders to submit proposals on facade enhancements, experiential concepts and night-time initiatives. This comes on top of new tenders for the design, build and management of pop-up spaces, as well as the rezoning of four heritage bungalows for hotel use. But after millions of dollars and years of effort sunk into the rejuvenation of Orchard Road, the work is still not done, said experts. What is still needed is a “wow” factor, said professor of strategy and policy Lawrence Loh from the National University of Singapore’s (NUS) Business School. From an air-conditioned dome to beat the heat, to a university sited entirely within the shopping precinct, landlords, retailers and industry analysts floated several ideas to CNA that could help future-proof the district. Yet, these stakeholders also warn of deep-seated challenges and an inherent inertia holding back change. STILL RELEVANT, BUT COMPETITION IS RISING Orchard Road has lost some of its shine, but it still remains relevant to businesses that want an entry point into the region, experts said. Ms Sona Aggarwal, managing director and head of Asia Pacific retail sales and strategy at Cushman & Wakefield, said the shopping street remains a key entry point for international brands, and has a strong and diverse tenant mix. It continues to attract new-to-market brands such as Hoka, Maison Margiela and Tom Ford. Mr Mark Shaw, chairman of the Orchard Road Business Association (ORBA), similarly said brands that are new to Singapore still seek a presence along the famed shopping street. Popular frozen yoghurt brand Yo-Chi and Chinese tea chain Molly Tea chose to open their first Singapore stores in Orchard Central, for example. He also highlighted recent renovations to Lido Theatre - which is run by the Shaw family - that offer VIP seating, dine-in theatres and a child-centric cinema experience, along with an influx of Chinese F&B and beauty concepts. “These additions have certainly added vibrancy to the precinct, and continue to draw visitors of all ages,” he said. Nevertheless, there are some who feel that other shopping precincts abroad have become more attractive. Orchard Road used to be at the forefront of the retail experience, said Metro chief executive officer Erwin Wuysang-Oei. Recalling why the shopping belt gained a reputation in the first place, he said that back in the day, Singaporeans would go overseas and bring new, interesting brands to Orchard Road that were not available in the region. But the rest of Southeast Asia’s high streets did not remain stagnant, he said. Echoing that view, Associate Professor Seshan Ramaswami of the Singapore Management University said Orchard Road shopping used to be a “must do” for tourists from China, Indonesia and India, but they now have access to a much better shopping assortment at home, with better prices and service. “When they visit Singapore, it is to enjoy the attractions and to eat a variety of cuisines at every price level,” the associate professor of marketing education said, underscoring the point that shopping is no longer the main draw. For Orchard Road to remain competitive, it needs to have “non-stop crowd pullers”, said NUS' Prof Loh. “We need a Yaohan moment,” he said, referring to the now-defunct Japanese department store and supermarket. Yaohan pioneered the concept of one-stop shopping outlets, and its opening in Singapore in 1974 was the first time Prof Loh and other shoppers discovered they could buy nearly anything they wanted under one roof, from clothes and electrical appliances to ready-made meals. The store also had a play centre where trained babysitters took care of children, and offered laundry dry cleaning and shoe-repair services. Yaohan would not be impressive in today’s context, but shopping streets like Orchard Road need to be able to create similarly novel experiences to attract crowds, said Prof Loh. OTHER BIG CHALLENGES Fundamental difficulties remain for Singapore and Orchard Road, including unforgiving weather conditions, the limitations of shopping along a major thoroughfare and the high cost of operating a business here. Singapore Fashion Council’s chief executive Zhang Ting Ting said Orchard Road is limited by its function as a road. The shopping street does not favour pedestrians, she said. “We favour cars. You want street vibrancy, that … is intrinsically contradicting.” As the operator of Design Orchard, which is not linked to an MRT station, Ms Zhang also said pedestrians gravitate to sheltered paths because Singapore is so hot, and the rain usually means sales targets are not met. “I wish there was more master planning given to that, maybe it’s just about trees, better shading, or a continuous shelter,” she said. Mr Wuysang-Oei of Metro said the higher cost of operating a business in Orchard Road dampens innovation too as no one dares to take risks. “No room for failure,” he said. That’s in part because many malls along Orchard Road are owned by real estate investment trusts (REITs), which increase rents because they are obligated to distribute quarterly returns, he wrote in an article on LinkedIn. “So what gets curated out of Orchard Road? Precisely the things that make a street worth visiting. The local brand with a story. The experimental concept with no proven precedent,” he wrote. Ms Tan-Wijaya of Savills said up-and-coming brands in cities like Bangkok can afford to rent shop spaces next to major international brands, but that is not the case in Singapore. Orchard Road is lined with malls, not street shops, so there is less room for brands to be creative and offer unique experiences, she said. In Tokyo, Seoul and China’s first-tier cities, luxury brands try to outdo one another with bigger and more immersive, experiential flagship stores that are culturally relevant to the local market, she said. Mr Andrew Tan, co-founder of furniture store Atomi, also said landlords in Singapore have a less collaborative relationship with their tenants, compared with Japan, where the two sides work together to build something special for consumers. GOVERNMENT INITIATIVES In this regard, new pop-up spaces, such as those announced by STB last month, can be a way to create novel experiences with lower risk. Expected to launch by the end of 2026, these pop-up spaces will be available for rent for between one and six months, providing a lower commitment for brands to set up shop in Orchard Road. “By lowering the barriers for new and emerging brands to test the market here, we hope to position Orchard Road as an innovative launchpad for up-and-coming names - creating a more vibrant and diverse range of experiences that set Orchard Road apart from the typical mall experience,” said Ms Ashlynn Loo, director for land and concept development at STB, in response to CNA’s queries. She said the rejuvenation of Orchard Road is an ongoing effort, and that enhanced streetscapes and greenery, as well as compelling experiences, would boost footfall and spending. Over the years, the government has continued to roll out numerous initiatives that range from policies to redevelopment projects. These include a plan to create a “vibrant al fresco dining corridor”, cash incentives for developing underground pedestrian links and easing the rules on building facades. Some projects, however, have taken time to come into fruition. The Somerset Belt Master Plan, for example, began in 2019, and more construction is to begin later this year. But when these plans are completed, they can generate a new buzz along Orchard Road. Mr Baey Yam Keng, Minister of State for Culture, Community and Youth, told CNA that *Scape has done extremely well since its relaunch and is bursting with new energy. It has engaged over 45,000 youths since April last year through programmes organised by youths and *Scape’s partners. The programmes include arts festivals, dance sessions, creative showcases and concerts to allow youths to develop skills and build meaningful community connections. “This contributes to Orchard Road's broader rejuvenation through Somerset Belt’s role as a distinctive, youth-focused precinct, supporting the vision of differentiated precinct identities and experiences beyond retail,” said Mr Baey, who co-led the Somerset Belt Working Panel when he was Senior Parliamentary Secretary. *Scape’s acting executive director Ethen Ong described the response to the refreshed space as amazing, adding that it is on track to meet its expected annual footfall of two million. He said *Scape’s management is intentional about creating a space for youths and for smaller brands without big followings. For example, it would have been possible to place a Starbucks cafe in *Scape if the goal was to draw a crowd, he said. “But we're very clear that the refreshed *Scape is not a space where we want to attract this type of footfall,” he said. Instead, *Scape leaves units vacant to create open, sheltered areas, with security officers instructed to not stop youths from talking loudly, playing games or even taking naps. The team also reaches out to interest groups to invite them to gather at *Scape and work with youths to organise various activities. Mr Ong recalled bumping into a group of youths last year who told him they wanted to organise a concert and were trying to figure out where to hold it. They were surprised to hear from Mr Ong that they would not need to pay to rent a venue at *Scape. “And the rest is history,” he said, adding that word spread quickly after that. MORE BOLD IDEAS So what does Orchard Road need? For Atomi’s Mr Tan, less is more. To him, Orchard Road has become a sterile and sanitised environment, while other countries seem to have taken a more decentralised approach. He believes that there could be more organic growth in Orchard Road if there are fewer interventions. “There'll be more vibrancy, there'll be more character, unique character that comes up,” he said. Others raised suggestions inspired by shopping streets abroad, such as ways to pedestrianise Orchard Road – ideas that have been trialled here before but have seen limited implementation thereafter. One suggestion is to relook at how rents are set in order to achieve certain objectives, said NUS’ Prof Loh. For example, rents could be priced in a way to allow local businesses to sprout on the premier shopping belt. He also suggested moving some meetings, incentives, conferences and exhibitions activities to Orchard Road, or siting a university along the shopping street. “We need some all-day, all-night type of life there,” he said. Mr Wuysang-Oei said efforts to make Orchard Road greener are not practical because the weather is too hot and no one will want to sit outside Plaza Singapura and “enjoy the sun”. “Maybe what people want is an air-conditioned Orchard Road, to make sure that whether rain or shine, we are protected,” he said, adding that underground connections may not always be possible. “Maybe (we) should just build a dome, maybe that’s the most practical way.”