Food and Beverage Stores Dominate New Openings in Singapore's Prime Malls

Singapore, Singapore Jul 22, 2026 ALN: More than half (53%) of new store openings in Singapore’s prime malls in the first half of the year were food and beverage (F&B) outlets, according to a report by Cushman & Wakefield, as cited by the Singapore Business Review. This trend highlights the strong consumer appetite for dining experiences, which has been a significant driver of retail activity in the region. The F&B sector's prominence in new retail openings underscores a shift in consumer behavior that favors experiential consumption over mere transactional purchasing.

The dominance of F&B outlets in new openings is particularly noteworthy given the backdrop of challenges faced by the industry. In recent years, there have been numerous reports of F&B closures across Singapore, attributed to several factors including higher rents, labour shortages, and rising operating costs. The COVID-19 pandemic exacerbated these challenges, leading to a significant shift in consumer behavior and spending patterns. Many restaurants and cafes struggled to adapt to the sudden restrictions on dining in, which forced a reevaluation of business models and operational strategies.

Despite these difficulties, the report from Cushman & Wakefield indicates that the number of new retail and F&B businesses continues to exceed closures. This resilience suggests that while individual businesses may struggle, the overall market remains robust, with a steady influx of new entrants. The data also reinforces the idea that physical stores are still the preferred channel for retail sales, even as online shopping gains popularity. This preference for in-person shopping could be attributed to the social and experiential aspects of dining and shopping, which many consumers still value. Eating out, for instance, is often seen as a social activity and a way to connect with friends and family, which has contributed to the ongoing demand for F&B outlets.

In addition to F&B outlets, the report notes that lifestyle and fashion retailers accounted for 16% and 14% of new openings, respectively. This diversification in retail offerings indicates a healthy retail environment where various sectors are vying for consumer attention. The lifestyle sector, which encompasses a wide range of products from home decor to wellness items, has seen a surge in interest as consumers increasingly prioritize personal well-being and home aesthetics. The pandemic has led many to invest in their living spaces, driving demand for home improvement and lifestyle products. Meanwhile, fashion retailers continue to adapt to changing trends and consumer preferences, often incorporating sustainable practices into their business models. The growing awareness of environmental issues has prompted many consumers to seek out brands that align with their values, leading to an increased emphasis on sustainability in fashion.

The influx of new market entrants, particularly Chinese-backed companies and retailers opening their first physical stores, further underscores Singapore's appeal as a retail hub. The city-state is viewed as a strategic entry point for international brands looking to establish a presence in Southeast Asia. This is largely due to its stable economic environment, high disposable income levels, and a well-developed infrastructure that supports business operations. Singapore's reputation as a global business hub is bolstered by its strategic location, excellent connectivity, and a favorable regulatory framework that encourages foreign investment.

Moreover, the report emphasizes that Singapore remains a key entry point for international retail brands, buoyed by resilient consumer spending, recovering tourism, and its role as a regional business hub. The return of tourists, particularly from neighboring countries, is expected to bolster retail sales, providing a much-needed boost to the F&B sector and beyond. As travel restrictions ease, the influx of visitors is likely to contribute significantly to the recovery of the retail landscape. The tourism sector plays a crucial role in Singapore's economy, and its recovery is essential for the overall health of the retail sector, especially F&B outlets that rely heavily on foot traffic from both locals and tourists.

Looking ahead, Cushman & Wakefield projects limited availability of prime retail space, which is expected to support rental growth in the coming months. Most of the upcoming retail supply will come from mixed-use projects in suburban areas, which are becoming increasingly popular among consumers seeking convenience and a variety of services in one location. The report forecasts that prime retail rents in Orchard Road and suburban malls will rise between 1% and 2% year-on-year (YoY) this year. This projection is slightly below earlier estimates of 1.5% to 2.5%, reflecting the prevailing economic uncertainty, inflation risks, and softer labor market conditions that may affect consumer spending and business operations. The potential for rising rents may create challenges for smaller retailers, particularly those who are still recovering from the impacts of the pandemic.

While the overall outlook for retail in Singapore appears positive, the anticipated annual new retail supply through 2031 is expected to average 0.4 million square feet. This steady supply is likely to help maintain low vacancy rates in Tier 1 malls, which are among the most sought-after retail spaces in the country. The report highlights that around 65% of the upcoming supply is expected to be concentrated in suburban areas, with only 5% projected for Orchard Road. This shift towards suburban retail development may be indicative of changing consumer habits, as more people seek shopping options closer to home, particularly in the wake of the pandemic. The trend toward suburbanization is not only reshaping the retail landscape but also influencing urban planning and development strategies in Singapore.

In conclusion, the dominance of food and beverage stores in new openings reflects a broader trend in Singapore’s retail landscape, where consumer preferences are evolving amidst economic challenges. The resilience of the retail sector, coupled with the strategic positioning of Singapore as a gateway for international brands, suggests a dynamic future for the city-state’s malls and shopping districts. As the market adapts to new realities, stakeholders will need to navigate the complexities of consumer behavior, economic conditions, and competitive pressures to sustain growth in the years to come. The ongoing evolution of the retail environment in Singapore will require continuous innovation and adaptation from businesses, ensuring they remain relevant in a rapidly changing marketplace.