Retail industry looks to be in BAD shape and that government seems to be needed to step in and help. Will this affect retail #reits ?

My father-in-law is in the retail business selling luggages and his first hand sharing is that this pandemic is the BIGGEST challenge to the business he has seen in 30-40years.

Today, I’ve data points that show retail trends in both offline and #eCommerce

1) Supermarket sales

2) Electronic and telecommunication sales

3) F&b sales And these businesses affect the revenue of malls owned through Retail REITS in Singapore like CapitaLand Mall Trust CMT And Frasers Centrepoint Trust FCT.

Data has been produced (painstakingly 😲 ) for you from https://www.singstat.gov.sg/ from Jan2020 to July2020 Online transactions climbed all the way to 24.5% in MAY2020 of all retail sales. But it peaked and is NOW on the decline.

Total retail sales bottomed in May2020 and recovered in June and July.

First question is “Are we in a Tech bubble”? If online sales is not that big, maybe technology is NOT as needed as it appears to be.

First segment is supermarket sales The percentage of sales done online has been growing from Jan2020 to July2020. ShengSiong’s eCommerce platform seems to be very dated and they may not benefit from this trend. Supermarket sales also peaked in May2020 and have declined gradually.

Second segment is Furniture sales and electronic online sales It peaked in May2020 The trend suggests that furniture sales are still done more offline while electronic sales seems to be permanently more online moving forward. A company in electronic retail sales is CHALLENGER who are in many malls.

Third segment is F&B sales In July2020, online sales was only 21.1%. The total online F&B sales have been dropping since May2020. F&B sales dropped tremendously during the circuit breaker but have since recovered since april2020. With measures relaxed, F&B sales are picking up very quickly.