Tom & Stefanie down to three stores from 10 as founder's daughter fights to keep 32-year-old business alive
Tom & Stefanie has closed its Tiong Bahru Plaza outlet, leaving the 32-year-old children's store with just three shops, down from a peak of 10. Founder's daughter Stefanie Chua says rising rents and online competition are behind the closures, but she wants to keep going for longtime staff.
Tom & Stefanie, the homegrown children's store, has closed its outlet at Tiong Bahru Plaza, leaving the 32-year-old family business with just three stores across Singapore, down from a peak of 10. The closure follows the shuttering of its Hillion Mall outlet earlier this year, which the company attributed to rising rental costs.
Stefanie Chua, the daughter of founders Tom and Stefanie, said she wants to keep the business going, not only to preserve her parents' legacy but also to protect longtime employees who have been with the company for almost 20 years. In an episode of Mediacorp's Gen Z Crash Course, Chua became emotional when asked why continuing the business mattered, saying older staff would struggle to find work elsewhere because of their age.
Chua, a Year 2 business student at Singapore Management University, said she grew up helping out at the family's stores, working as a cashier on weekends. Ironically, watching her parents work so hard made her initially want a more predictable corporate career, and she previously interned at CapitaLand and JPMorgan.
The retail environment has been tough, Chua said, pointing to rising mall rentals and competition from online retailers. She noted that some of Tom & Stefanie's products are actually cheaper in-store than online, citing a car organiser priced at S$44.90 in-store versus S$57.12 online, and a sale item at S$15.90 versus S$36.77 online.
Chua said the company keeps prices competitive by accepting smaller profit margins and relying on long-term supplier relationships and direct factory links. She also acknowledged that some customers browse in stores and then check prices online, a habit she says can be misguided given the in-store savings available.
