Yankee Candle distributor bracing itself for tough times

The raft of support measures last year helped get the local distributor of Yankee Candle through what has been annus horribilis for many retailers, but even more challenging times may lie ahead.

The ending of rental rebates and the Jobs Support Scheme (JSS) tapering off for most sectors are posing enough problems for Pure Senses, but managing director Logan Wong has other concerns on his plate as well, as do many other retailers.

He cites supply disruptions, rising raw material and freight costs, and now, tighter Covid-19 curbs.

While retail shops can still open, Yankee Candle voluntarily shut its outlet at Jem mall in Jurong East from Monday night until Wednesday after the Health Ministry urged visitors to Jem or Westgate malls between May 10 and May 14 to get tested for Covid-19.

"Jem is one of our top sales stores," Mr Wong said. "Sales are now down more than 50 per cent each day. Last year, revenues dropped 100 per cent in April, but we switched to selling online and managed to recoup 20 per cent of total sales in May. We were back to normal by June."

But with its United States factories still not at full capacity, the shortage of supply is also affecting Yankee Candle revenues, he said.

The company has seven stores in Singapore, five in Hong Kong and three in Malaysia.

Fortunately, cash flow last year was not too bad because of the government support in its three markets and a bridging loan it took out.

"We were profitable before the pandemic hit, so we had cash reserves. Luckily, the Government gave JSS and other support that helped our cash flow."

Mr Wong has asked landlords here for one month of rent relief.

"They said they will review my request, but so far, none has acceded to it."