Singapore's retail shift: how bookshops are evolving

The retail landscape in Singapore is undergoing a profound transformation, driven by rising rental costs, the dominance of e-commerce, and changing consumer behaviours. Bookshops, as part of the broader retail scene, highlight the challenges and adaptations faced by traditional retailers. Although brick-and-mortar bookshops have been particularly vulnerable to these disruptions, their experiences provide valuable insights into the wider retail environment.

One of the most pressing challenges for retailers in Singapore, including bookshops, is the continuous rise in retail rents. Prime retail rents rose by 0.5% quarter-on-quarter in Q3 2024. This trend places pressure on physical retailers, many of whom struggle to maintain profitability amidst high overheads, particularly labour and inventory costs. 

Singapore's physical bookshop landscape experienced similar pressures in 2024, as seen with the closure of Times Bookstore on September 22, after over 46 years of operation. Following this, Epigram Books, a pioneering bookshop located within the Singapore Art Museum and known for stocking exclusively Singaporean literature, will close on January 26, 2025.

Furthermore, the rise of e-commerce giants like Amazon and Lazada has significantly disrupted the retail market. Consumers are increasingly drawn to the convenience of online shopping, which offers competitive pricing and a wider selection than a brick-and-mortar shop. This shift has compelled many retailers to explore innovative ways to attract customers.

In response to these challenges, traditional retailers have implemented creative strategies to maintain their relevance. A notable trend is the inclusion of experiential features in retail spaces. Successful bookshops have hosted community events such as author talks, workshops, and book clubs to foster social interaction and engagement. For example, Book Bar, an independent bookshop focused on Asian literature, has successfully combined its book offerings with social events like Bookworm Banter, a social book club with quiet reading periods. These community-driven events have boosted store revenue by drawing more customers and encouraging them to spend more time within the shop.

In the wider retail scene, physical retailers can benefit from aligning their marketing efforts with popular online trends to attract a broader audience. A good example is the impact of "BookTok" on TikTok, which has revitalised interest in reading among the younger generation. Retailers across various sectors can learn from this phenomenon by leveraging social media platforms to engage with tech-savvy consumers. 

Additionally, retailers selling traditional products may need to diversify their offerings to remain competitive. For example, the home-grown bookshop Popular has evolved into a “one-stop” shop, expanding its inventory to include stationery, gadgets, and packaged food. Diversifying product offerings enable retailers to appeal to a wider customer base and adapt to changing consumer preferences.

The case of bookshops in Singapore reflects the broader challenges that physical retailers face in an evolving consumer landscape. Although rising rents and competition from e-commerce pose significant threats, there are also opportunities for adaptation and innovation.

As Singapore's retail landscape continues to transform, traditional retailers must remain agile and responsive to changing consumer preferences. By embracing experiential retailing, leveraging social media trends, and diversifying product offerings, retailers can carve out sustainable niches within the competitive retail environment.