Having additional retail outlets in the underpass linking ION Orchard and Tangs Plaza will not pose a threat to the businesses above ground in the malls.
Several analysts explained that retail outlets along the underpass might cater to basic needs such as an automated teller machine lobby. However, some analysts have called for more alternative and creative use of the underground space such as having interchanging upscale retail booths.
Currently, the underpass is home to a busker and a transient crowd that passes between Orchard MRT station or ION Orchard and Tangs Plaza. But this would change in 2014 when the upgrading works for the linkway is completed, which can accommodate more shops on both sides of the tunnel.
Some observers, however, insisted that Orchard Road does not need more retail shops.
"We should maybe turn our minds to look at what we’re short of on Orchard Road and not what we already have plenty of," said Lau Chuen Wei, executive director of Singapore Retailers Association.
"For instance, we could have a nice upmarket bazaar. That may be an opportunity for young entrepreneurs and retailer wannabes to test the waters and instead of having to tie themselves down to a two or three-year lease, they could maybe just test it for three or six months."
"And it could be like a funnel so you test it there and when you think that you’re ready to take on a longer lease, then maybe you can be funnelled to the more permanent places within the mall. So it’s like a test bed."
As ION Orchard will manage the redevelopment of the underpass, some believe the passageway might end up housing up to 10 shops. Each store may span from 300 sq ft to 500 sq ft on average.
Charles Ng, retail director of Colliers International said: "I reckon rental there will be far higher than those say in Citylink Mall. This is because this is Orchard Road and I believe that traffic will certainly be far higher."
"It should be in the region of mid 30 dollars, say S$35 psf, as opposed to say Citylink Mall which is achieving about S$25 to S$28 psf."