A Bloomberg report says vacancies in the city’s main Orchard Road area, a magnet for tourists lured by malls and Japanese department stores such as Takashimaya, have risen to a five-year high.

Across the island, the report says, the number of vacant stores has soared to the highest since 2009.

As economies around the region struggle with sluggish growth and consumers rein in spending, property brokers are expecting more retailers to scale back and close shop.

While rents have slumped from a peak in 2014, they haven’t fallen nearly enough to convince some brands to stay, according to the report.

It said some of the biggest retailers are fleeing. Al-Futtaim Group, the distributor in the city-state of major brands including Marks & Spencer and Zara, plans to shut at least 10 stores in Singapore this year even as the conglomerate expands its footprint in cheaper Asian markets like Malaysia and Indonesia.

British brand New Look and French menswear chain Celio plan to close shops in the second half of the year, with more tenants expected to follow suit, according to property broker Cushman & Wakefield Inc, the report said.

The Bloomberg report gave five reasons as to why Singapore cannot expect its status as a shoppers’ paradise to be restored anytime soon:

• Tech savvy Singaporeans are turning to online shopping;
• Domestic consumers are concerned about the economic situation and not spending as much;
• Tourists are not spending as much as before and fewer tourists are arriving from China
• The rising supply of malls will add pressure to rents and raise vacancy levels; and
• More physical stores are closing shop.