4 Quotes That Vividly Describe How Singapore’s Retail Might Never Be the Same Again
- Original Post from The Motley Fool Sg

Singapore’s retail scene may never be the same again.
It is not a secret that retailers in Singapore have been facing a tougher time over the past few years. There might be several reasons for this. To find out more details, I took time recently to dip into the annual reports of major retailers in Singapore. I wanted to figure out what the retail scene in Singapore looks like from the eyes of the major players.
What I found were some vivid descriptions of the challenges that retailers face.
1. The shift to online shopping continues – click here
2. Few retail segments will be left untouched – click here
3. Bricks and clicks
Metro Holdings Ltd (SGX: M01) also believes that consumers are increasingly shopping online. In its latest annual report, the retailer said:
“Prospects of our Singapore retail operations remain challenging, as supply of new retail space continues to grow while consumers’ shopping behavior shifted increasingly towards online.”
The firm is also moving to embrace an omni-channel approach where customers can shop online, and collect it in-store:  
“With this understanding, Metro has undertaken to transform ourselves, both in developing fresh concepts to entice consumers with better shopping experience, as well as to develop an omni-channel marketing strategy to meet the evolving needs of our customers and support a complete online-to-offline (O2O) user experience.”  
4. Gone with the wind
The theme is clear – status quo will not work. Suntec Real Estate Investment Trust’s (SGX: T82U) chief executive of the manager, Chan Kong Leong, provided this statement during his SGX kopi-C interview:
“Gone are the days when all you have to do is open the store and customers will walk in to buy.”
Suntec REIT is the owner of Suntec City which has a major retail component. Chan added another interesting perspective on physical assets:
“The mall operates from 10am to 10pm. In other words, the asset sleeps when we do. But physical concrete doesn’t need rest, so the question is how do we raise utilisation rates during those periods?”
Increasingly, physical store retailers will have to figure out new ways to make full use of its existing assets, or risk being swept away by change.
$Metro(M01.SI) $SGX(S68.SI) $Suntec Reit(T82U.SI)

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Year End Recap and Looking into 2018

This year the Index is up like 12% so far while reits are up 18%.
My portfolio so far is up around 14% for the year which is not too bad, kinda in between those two as you will see why.

The positive returns mostly came from my position bought in 2016 which are the 5 reits and 3 banks,
$CapitaCom Trust(C61U.SI) $CapitaMall Trust(C38U.SI) $Mapletree Com Tr(N2IU.SI) $Frasers Cpt Tr(J69U.SI) $Suntec Reit(T82U.SI)
$OCBC Bank(O39.SI) $DBS(D05.SI) $UOB(U11.SI)

I have since divested FCT/Suntec/UOB to take some of the profits off the table, and the cash proceeds have gone on into my 3 key ideas for 2017 $ComfortDelGro(C52.SI) $SingTel(Z74.SI) $ThaiBev(Y92.SI)

In 2016 I greatly outperformed the index because of my picks on asset managers such as $Global Logistic(MC0.SI) and $Frasers Cpt(TQ5.SI) $ARA Asset Mgt(D1R.SI) as well as staying vested in the 3 Local Banks.

This year wise not all my picks have performed well and the new position on ComfortDelgro has become a big drag to the portfolio. $StarHub(CC3.SI) has also not performed well, but this is a legacy position as I have been holding this counter since 2008 till now.

My Portfolio Going into 2018
$CapitaMall Trust(C38U.SI) $CapitaCom Trust(C61U.SI) $Mapletree Com Tr(N2IU.SI)

Reits has ran up a lot and many are trading above book value, I would be wary of putting any more money in these area. Since I got my reits cheap I would just leave it there for long term dividends.
My yield on cost is around 6% and I expect them to grow dpu at around 3% per year for the long term.

$DBS(D05.SI) $OCBC Bank(O39.SI)

Banks seems fairly priced at 1.1 to 1.2 times book already, will keep for long term growth as I believe the worst is over for the oil crisis.
I am expecting 3% dividends and 5-10% growth in NAV per share ahead.

$SingTel(Z74.SI) $StarHub(CC3.SI)

I am mostly waiting for ST to pay a special dividend in 2018
I do think SH should be able to maintain 16 cents dividends for 2017/18/19, the upside for the stock price could be little to none
I do not see any growth in this area due to the entry of the 4th telco, however telcos are still cash cows to be milked.
I expect to continue receiving around 5%+ dividends overall from this segment

$ThaiBev(Y92.SI) $ComfortDelGro(C52.SI)

The Thai king mourning would be over and TB should see growth momentum coming back again in 2018, the big kicker would be the sale of FCL as well as the consolidation of FNN to make this a pure F&B counter.
In the long run i expect 3% dividends along with 8-10% earnings growth.

CDG continues to decline, stock price wise I would never know the bottom and we should never underestimate how insane the market can be. However I am still confident in them maintaining the 10 cents dividends for a juicy 5% dividend yield.

Overall I am still pretty confident of my portfolio as a whole, as I feel diversified enough across these 4 segments. I expect to make a long term return of 5% from dividends along of 3-5% in capital gains, for a total return of 8-10% going ahead for the many years to come.

Cheers ^_^

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Target Price

$SGX(S68.SI) Looking bullish. Awaiting for a massive breakout. *Edit: Target won't reach in 3 weeks, looking at about 1.5 years. Position trade.

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nice uptrend mode patterns.
I think likely to continue to trend hew high..

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