Robinsons: End of a Singapore icon

After 162 years, department store stalwart Robinsons is throwing in the towel. It said yesterday it is closing its last two department stores here at The Heeren and Raffles City Shopping Centre.

The retailer said the decision to liquidate its stores was prompted by a range of factors, including changing consumer tastes and cost pressures such as rent.

"The overarching business model of department stores is outdated," it said in a statement.

While the retailer's e-commerce platforms are no longer operational, shoppers can continue to visit its bricks-and-mortar stores for the time being.

The last day for the two physical stores is not clear. Robinsons said the appointed liquidators are in negotiations with the landlords, but "we hope that the stores will stay open for the coming weeks".

Robinsons stores in Malaysia, located at Shoppes at Four Seasons Place and The Gardens Mall, will also be liquidated.

But other retailers under the Al-Futtaim Group, which include Marks & Spencer and Zara, will not be affected, a spokesman has confirmed.

Mr 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."

Robinsons said changing retail trends brought about by the rise of e-commerce and lower demand for department stores are to blame for slumping sales, a problem made worse by the pandemic.

Robinsons was bought by the Dubai-based Al-Futtaim Group in 2008 for $600 million.

The chain 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 contrast, 2014's turnover was $257.3 million.

In the third quarter of this year, Robinsons closed its Jem outlet.

Following the retailer's announcement yesterday, OCBC Bank said it is cancelling its OCBC Robinsons Credit Card from April 15 next year.

Mr 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."

Robinsons also encouraged all customers holding on to gift cards and vouchers to redeem them as soon as possible. "The stores in Singapore will accept Robinsons... gift cards and vouchers during the liquidation process and for as long as the stores remain open," it said.

Customers were told yesterday that vouchers can be used only for purchases of at least twice the voucher value. So, a $20 voucher can be used only with a minimum spend of $40, for instance.

Corporate advisory and restructuring firm KordaMentha's Mr Cameron Duncan and Mr David Kim have been appointed provisional liquidators.

They will take control of the company's assets and assess options to realise value to maximise returns to creditors, including employees.

For the liquidation of Robinsons' two stores in Malaysia, Datuk Robert Teo Keng Tuan of RSM Malaysia was appointed yesterday as interim liquidator.

When contacted, Raffles City Singapore said it is in discussions with Robinsons on the smooth handover of the premises. "Shoppers can look forward to a refreshed Raffles City tenant mix with the introduction of exciting offerings. More details will be shared in due course," it added.