F&B drives 53% of Singapore's prime mall openings in H1

Chinese-backed brands continued entering the market.

Food and beverage (F&B) retailers accounted for 53% of new store openings in Singapore's prime malls in the first half of 2026, making the sector the largest driver of retail leasing demand, according to Cushman & Wakefield's Singapore Outlook H2 2026 report.

Lifestyle and fashion retailers followed, contributing 16% and 14% of new openings, respectively, as experiential retail continued to attract shoppers and support footfall in prime malls.

Despite ongoing store closures, net business formation in the retail and F&B sectors remains positive, whilst most retail sales continue to be made in physical stores despite rising online penetration, the report said.

International retailers also remained active, with new-to-market brands, Chinese-backed companies, and retailers opening their first physical stores sustaining leasing momentum despite high tenant turnover.

“Singapore remains a key entry point for international retail brands, supported by its resilient consumer spending, recovering tourism and role as a regional business hub,” Cushman & Wakefield said.

The firm expects limited supply of prime retail space to continue supporting rental growth.

Most upcoming retail developments will comprise podium retail within mixed-use projects in suburban areas, with no major standalone shopping malls expected in the near term.

Prime retail rents in Orchard Road and suburban malls are forecast to increase by 1% to 2% year-on-year in 2026, slightly below earlier projections of 1.5% to 2.5%, as global uncertainty, rising inflation risks, and softer labour market conditions weigh on retailer sentiment and consumer spending.

Meanwhile, retail rents in other city areas have outperformed expectations as retailers seek more cost-efficient locations amid limited availability in Orchard Road.

The report also noted that annual new retail supply through 2031 is expected to average 0.4 million square feet, about half the historical 10-year average, helping keep vacancies in Tier 1 malls low.

Around 65% of the future supply pipeline is concentrated in suburban areas, whilst Orchard Road accounts for only about 5%.