SINGAPORE — By mid-2017, shoppers can step into a new smart mall in front of the Singapore Post Centre (SPC) next to Paya Lebar MRT station where they can browse in-store, make purchases and then get their shopping delivered directly to their homes.

The S$150 million initiative announced by SingPost today (Oct 28) comes as the postal services company strives to morph into a global e-commerce logistics giant amid a decline in demand for traditional mail services. It will be the first retail mall here to combine brick-and-mortar shopfronts and online shopping under one roof.

“With the new retail mall at SPC, consumers can enjoy the best of both worlds — online and offline — while businesses can potentially cut costs and focus on enhancing customer experiences,” said Dr Wolfgang Baier, group CEO of SingPost.

Online shopping through e-merchants at the new mall will feature in-shop ordering and flexibility in delivery and pickup timings. It is also aimed at creating opportunities for businesses in the current changing retail landscape as retailers can save on storage space.

“The new retail concept puts consumers at the heart of this evolution, allowing them to have greater retail options and more convenience. This is an important shift in mindsets as well as the retail and e-commerce landscapes. The convergence of online and offline will bring exponential benefits to consumers and businesses,” said Dr Baier.

The mall, spanning 25,000 square metres, will also have an eight-hall Golden Village cineplex, SingPost’s flagship post office, retail shops and food and beverage outlets, including a Kopitiam food court.

Whether the new concept will work in Singapore, where shopping is a national pastime, remains to be seen.

“I’m ambivalent about the idea, but it seems as though the physical experience and the component of human interaction may be lacking,” said 27-year-old Aaron Chan, who lives in Potong Pasir.

Ms Chitralekha Poddar, 35, the mother of a five-year-old welcomes the idea of not having to spend money on taxis after a shopping spree. “It also saves us from the confusion of managing kids (and our) shopping bags. Though online shopping is cheaper, for expensive products we want to touch and feel (them) before ordering.”

The new smart mall comes on the back of SingPost’s acquisition of two US-based companies, TradeGlobal and Jagged Peak, earlier this month for about US$185 million (S$258 million), marking its foray into e-commerce logistics in the US with the goal of connecting it to its network of over 15 countries in Asia-Pacific.

With the two new US companies part of its fold, SingPost now has e-commerce websites of over 100 brands in its portfolio, which could potentially be integrated with the new concept mall and be supported by e-commerce logistics services.

Chinese e-commerce giant Alibaba Group Holding is SingPost’s second-largest shareholder after Temasek Holdings. SingPost aims to drive its US brands into China using Alibaba’s Tmall business-to-consumer e-commerce platform. ADDITIONAL REPORTING BY TANG CHEE SENG