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After A 162-Year Run In Singapore, Robinsons Is Closing Down

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Fashion

After A 162-Year Run In Singapore, Robinsons Is Closing Down

The dual trend of more people turning to online shopping and lower demand for department stores is to blame for slumping retail sales, a problem that has been exacerbated by the coronavirus pandemic.

by Ng Wei Kai & Jessie Lim  /   November 1, 2020

A 1955 photo of Robinson & Co Building at Raffles Place. Credit: N J Cotterell/The Straits Times

Robinsons is liquidating its two department stores at The Heeren and Raffles City Shopping Centre, the retailer said on Friday (Oct 30).

This means that Robinsons’ last two stores will be closing and the company will be exiting from the Singapore physical retail scene after 162 years.

Robinsons said in a statement that the liquidation decision was made after the store’s “inability to continue operations due to weak demand at department stores”.

Credit:Desmond Wee/The Straits Times

Robinsons is liquidating its two department stores at The Heeren (pictured) and Raffles City Shopping Centre. 

Danny Lim, Robinsons’ senior general manager, said: “We regret this outcome today. Despite recent challenges in the industry, the Robinsons team continued to pursue the success of the brand. However, the changing consumer landscape makes it difficult for us to succeed over the long term and the Covid-19 pandemic has further exacerbated our challenges.

“We have enjoyed success over the years, and it has been an honour for Robinsons to serve the Singapore market. I am grateful for the dedication of our team, and for the support shown by our customers over the years.”

READ MORE: Is It Checkout Time For The Department Store?

Robinsons said that the dual trend of more people turning to online shopping and lower demand for department stores is to blame for slumping retail sales, a problem that has been exacerbated by the coronavirus pandemic.

Credit:Chong Jun Liang/The Straits Times

Shoppers queueing outside Robinsons The Heeren on Oct 30 after news broke out that the department store is closing down. 

The chain’s retail operations were bought by the United Arab Emirates-based Al-Futtaim Group in 2008 for $600 million.

In 2016, the Al-Futtaim group, which owns Robinsons and other franchises such as John Little and Bebe, announced that it would be closing 10 or more stores in Singapore, citing the challenging retail environment. 

The company suffered losses for at least the last six years from shrinking sales, The Business Times reported.

In 2018, it sank $54.4 million into the red after revenue fell to $153.8 million. In comparison, turnover was $257.3 million in 2014.

Credit:Mak Kian Seng/The Straits Times

Christmas decoration outside the old Robinson & Company building in 1960.

Its Raffles City store opened its doors in 2001.

The company later opened its flagship store at The Heeren in 2013, occupying six floors and 186,000 sq feet.

Then in 2016, Robinsons launched its first e-commerce website and also closed the last John Little outlet in Plaza Singapura at the end of the same year.

In the third quarter of this year, Robinsons closed its Jem outlet in Jurong East, which had opened in 2013.

Following Robinsons’ announcement on Friday, OCBC Bank said it is cancelling its OCBC Robinsons Credit Card from April 15 next year.

READ MORE: Our Shopping Challenge Video In Robinsons Will Ease Your Christmas Gifting Woes

Vincent Tan, head of cards business at OCBC, said: “We are grateful to have been able to partner Robinsons in a successful co-branded credit card platform in Singapore over the past 18 years.” 

Corporate advisory and restructuring firm KordaMentha’s Cameron Duncan and David Kim have been appointed provisional liquidators, said Robinsons on Friday.

The provisional liquidators will now take control of the company’s assets and assess options to realise value in order to maximise returns to creditors.

Credit:Courtesy

Robinsons flagship store at The Heeren opened in 2013, occupying six floors and 186,000 sq feet.

“Subject to confirmation, the liquidators are hoping the stores will remain open for the coming weeks to facilitate final sales for customers before they are shuttered,” Robinsons added in the statement.

The retailer said that its employees were informed on Friday by management and the provisional liquidators of the liquidation, adding that they have been assured that the liquidators will now work to maximise returns to creditors, including employees.

Robinsons said its management has ensured that employees are supported with payments that will be made to them in line with the next payment cycle.

“I will miss the spontaneous experience of being able to find anything from clothes, homeware and children’s items in one place at Robinsons.”

Robinsons shopper Suyan Hong

“(This) is well in advance of the usual liquidation process timing, which would usually take months,” the company added.

KordaMentha will now aim to work with the Singapore Manual and Mercantile Workers’ Union, the National Trades Union Congress’ Employment and Employability Institute and the NTUC Job Security Council to ensure that employees are supported.

The liquidators will also leverage existing government schemes such as SkillsFuture Singapore’s SGUnited Jobs and Skills Package.

READ MORE: Topshop And Topman Are Shuttering Their Last Standing Stores In Singapore

Robinsons stores in Malaysia, located at Shoppes at Four Seasons Place and The Gardens Mall, will also undergo a similar liquidation process with the appointment of Datuk Robert Teo Keng Tuan of RSM Malaysia on Friday as interim liquidator.

Some shoppers like housewife Suyan Hong, 48, were “totally stunned” when told that Robinsons was in provisional liquidation.

“I knew that they were downsizing after they announced the closure of their (Jem) outlet. But usually when downsizing happens it’s a cost-cutting measure that will help the business’ margins improve. I didn’t expect them to shut down,” she said.

Hong said that the department store introduced her to brands such as Jigsaw, Whistle and Trucco which she frequently buys from.

“I will miss the spontaneous experience of being able to find anything from clothes, homeware and children’s items in one place at Robinsons,” she said. “Robinsons is where I would go for last-minute shopping during the holiday season.”

Here, we look back on the defining moments of Singapore’s oldest home-grown department store.


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https://www.femalemag.com.sg/gallery/fashion/robinsons-closing-heeren-raffles-city-department-store-sg-singapore/
After A 162-Year Run In Singapore, Robinsons Is Closing Down
image

1858: A new firm, Spicer & Robinson, is founded by Englishman Philip Robinson, then living in Singapore, and James Gaborian Spicer, a former keeper of the Singapore Jail. The company is located in Commercial Square, now known as Raffles Place.

1859: The firm expands from mainly selling groceries to millinery and dressmaking. By the end of the year, James Spicer leaves the business and the company is renamed Robinson & Co. Philip Robinson also brings in a new business partner, George Rappa Jr.

1881: By this time, Robinsons is the preferred store for European expatriates in Singapore.

1891: After moving several times, including to North Bridge Road and Coleman Street, the store returns to its original location in Raffles Place.

Above: A 1955 photo of the Robinson & Co Building at Raffles Place

N J Cotterell/The Straits Times
image

1920: Robinson & Co becomes a limited company.

1941: The outlet at Raffles Chambers is hit twice by Japanese bombs during World War II, but reopens the next day.

1942-1945: The firm is closed during the Japanese Occupation.

1946: The department store resumes trade.

1955: Robinsons takes over John Little.

1957: The store undergoes a facelift and is called the “handsomest shop in the Far East”.

1958: Robinsons gains the franchise for Marks and Spencer for Singapore.

Above: Mural of Santa Claus riding on sleigh outside Robinson & Company building in 1960

Mak Kian Seng/The Straits Times
image

1972: The store is destroyed by a fire in Raffles Place that kills nine people and wipes out $21 million worth of property, including $10 million worth of diamonds and jewellery on display. It relocates to Specialists’ Centre in Orchard Road after the fire.

1983: Robinsons becomes the anchor tenant at The Centrepoint.

1990s: Regular warehouse sales during this period tarnish its reputation as an upscale department store.

2001: A new $30 million store, covering 85,000 sq ft, opens at Raffles City in March, targeting trendy, young customers. The Centrepoint outlet gets a brand new look.

Above: The fire that gutted the Robinsons department store in Raffles Place in 1972 killed nine and injured more than 70 people

Sin Chew Jit Poh
image

2006: OCBC Bank sells 29.9 per cent of its stake in the group to Indonesia’s Lippo Group, through Auric Pacific Singapore, for $203 million.

2008: Retail operations are sold for $600 million to the Al-Futtaim Group based in the United Arab Emirates.

2013: Robinsons moves to a new S$40 million outlet at 260 Orchard Road (formerly The Heeren), taking over five floors and the basement. The swanky store, with many new brands, aims to attract a high-end market with its stylish interior and posh atmosphere. Another outlet is opened at Jem in Jurong East.

Above: Shoppers at the Robinsons store in Centrepoint in 2012

Alphonsus Chern/The Straits Times
image

2014: Metro announces that it will replace the former Robinsons store at The Centrepoint as the anchor tenant and will open the store in the fourth quarter of the year. Robinsons’ managing director Franz Kraatz steps down.

2016: Robinsons launches its website. It also closes the last John Little outlet at Plaza Singapura at the end of 2016.

2017: It expands to the Middle East with a store at Dubai Festival City in Dubai.

2018: A store at Kingdom Centre in Riyadh, Saudi Arabia, is opened.

2020: Robinsons closes its store at Jem.

Above: Robinsons The Heeren opened on Nov 15, 2013.

This article first appeared in The Straits Times

Jeremy Long/The New Paper
  • TAGS:
  • department stores
  • robinsons
  • robinsons the heeren
  • shopping in singapore
  • singapore brand
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