'So much relief': Sales trickle in for hard-hit travel retailers as more VTLs open
SINGAPORE: Business is trickling in for pandemic-battered stores selling travel necessities such as luggage and winter article of clothing, providing retailers with some relief afterward a year-and-a-one-half of dismal sales.
Most stores CNA spoke to said sales accept risen between 10 and xv per cent, post-obit contempo announcements nigh quarantine-free travel under the vaccinated travel lane (VTL) scheme.
"It was the best news we've had since 2020," said Ms Joyce Lim, manager of wholesaler and retailer The Travel Shop, which has seen sales at some of its stores ascension by 15 per cent.
Some department stores accept already contacted the company in the hopes of organising travel fairs in the center of Nov, she said.
At lifestyle travel retailer The Planet Traveller, where sales have grown about x per cent, customers are mostly buying baggage in larger sizes and accessories such as travel adapters and organisers, said Ms Aw Yang Chen Lin, a marketing executive at its parent visitor Seager.
Luggage is as well the top-selling particular at Winter Time, followed by coats for cold weather, its marketing manager Rebecca Poon told CNA. Sales in that location have improved by 10 to 15 per cent.
Moneychangers such as Mr Mohamed Rafeeq, who owns Clifford Gems & Money Exchange in Raffles City, are also seeing a selection up in their business.
"Earlier the announcements, in i twenty-four hours we would have three to five customers, or nix sometimes.
"Last week, I saw maybe 10 to thirteen customers a twenty-four hour period. From zero to thirteen, something is ameliorate," he said, noting that customers have mostly been looking to purchase Korean won and euros.
"(There's) so much relief … I'm very happy," said Mr Rafeeq.
BADLY HIT By COVID-19
The green shoots of recovery come after gruelling months of cost-cutting, despite several rounds of wage offsets and rental rebates for the manufacture.
Sales at the Travel Shop plummeted by as much as 95 per cent, leading the make to shut 2 of its five stores in Singapore.
Winter Time at present has three stores, downwardly from the 10 it had in 2019. Like other brands, it had to pivot to selling other items such as sportswear, lifestyle products, backpacks and gifts.
At The Planet Traveller, falling sales during the pandemic drove information technology to double downward on its online sales channels.
Businesses also had to cutting costs significantly to stay afloat.
For Mr Rafeeq, that meant the painful decision of letting go 10 of his 17 employees, well-nigh of whom had worked for him for more a decade.
To survive, the company bought some currencies and waited for rates to get upward earlier selling them, though this did not always guarantee a turn a profit, said Mr Rafeeq.
"Every month we had a arrears, losing in rent and salaries, so nosotros were taking money from our own savings. I was very worried."
Not OUT OF THE Forest Withal
Though things are looking up, businesses are not out of the woods all the same.
Winter Fourth dimension's Ms Poon said sales have improved merely are "even so far from pre-COVID" numbers.
"Nosotros need to give very aggressive promotions to attract sales. So even though sales are coming in, the margin is not as good as previous times," she told CNA.
Online store Baggage Outlet said sales rose rather substantially after the news most VTLs – but it added that this was likely considering it coincided with major e-commerce campaigns during the same catamenia.
"Based on the buy patterns, nosotros take still to encounter a clear return of leisure travellers," said its owner Tan Wei Li.
"About people are still buying luggage of the largest sizes in multiple quantities. We think that most of them seem to be foreigners (domestic helpers, expatriates) returning to their home countries, or locals relocating overseas."
One moneychanger, Regent Coin Changer, too has not benefited from the increase in travel – but considering its outlets have remained shut, as they are in hotels serving quarantined travellers.
In whatsoever instance, its business organisation relies heavily on those travelling to and from nearby countries such as China, Thailand or Bharat, for which quarantine-gratis travel is not an option withal, said Mr Abdul Mu'id, who used to assistance his male parent run the business.
And they are non betting on a quick recovery in tourism. "Fifty-fifty though borders opened and you can travel, going back to the original course – I retrieve it won't be for now, possibly afterward five years," he said.
Volition IT Better Farther?
Moving frontward, stores hope the sales momentum volition go along to grow.
This is because the end of the year is traditionally a peak sales flow, given the vacation season, said The Planet Traveller'southward Mr Aw Yang.
Luggage Outlet's Mr Tan added that the upcoming 11.11 and 12.12 sales should likewise give retailers a heave.
Wintertime Time also said information technology expects sales to increment some other 15 to 20 per cent in the next ii months, especially if more VTLs are appear.
More than leisure travellers are likely to render to the market in the side by side few months, the businesses said.
"Travel, after all, is one of Singaporeans' favourite by times and VTLs definitely offer a respite from the pandemic-enforced twenty-four hours-to-day grind at piece of work," said Mr Tan.
The Travel Store'southward Ms Lim added: "I call up almost Singaporeans are still very conservative, they will want to monitor and come across … Then maybe next year (sales) will ameliorate more than.
"I'thousand not sure (how much sales will increase), simply at least it'southward upward, then I'm very happy already … Then every bit long as it goes upward, we meet the light."
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Source: https://cnalifestyle.channelnewsasia.com/singapore/so-much-relief-sales-trickle-hard-hit-travel-retailers-more-vtls-open-285371
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