‘Sales are dismal’: Businesses in CBD see slow recovery as most offices continue work-from-home arrangements

SINGAPORE: When asked to describe a typical lunchtime situation before COVID-19 at her fashion store, Butterflies & Marigolds, Ms Elsie Szto said with a laugh: “The store would be swarmed with women who are stressed at work.”

Yet, those located in the Central Business District told CNA that they are still facing challenges ever since the reopening. With the majority of their customers still working from home, businesses are losing their office crowd - which was once their core customer base.The lack of a lunchtime crowd would be most deeply felt by F&B businesses located in the CBD, which rely heavily on the hungry stomachs of office workers in the vicinity.

While the other 20 per cent comes largely from takeaways, Mr Ng said that hawkers are still paying for table-cleaning and centralised dishwashing services, which were subsidised by the National Environment Agency until May. “ we saw our core regulars come in around lunchtime or in the evenings. But during this period of time, there are a lot of people who are forced to clear leave - now they can take a half-day off from home and get things done at the clinic.”

“Pre-COVID-19, we would serve around 80 customers in a day per outlet. In June, we were serving 70 a day.” Both Mizu Aesthetic Clinic and Bonita said they have stepped up their hygiene practices but that also comes with trade-offs for the businesses. Ms Ng said that at least 10 to 15 minutes have to be set aside for cleaning after a procedure, which has impacted the scheduling of appointments.

“Our rental is very expensive: Including miscellaneous free and Goods & Services Tax, it’s S$6,000 per month.” Ms Szto of Butterflies & Marigolds said she is trying to propose Gross Turnover Rent - which is a percentage of the business turnover generated - to her landlord, so that she can “share the pain”.

“The traffic headcount is about 30 per cent of what it used to be,” its spokesperson said in an email reply.

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