By Tessa Wong

A SHAKE-UP in the retail industry is looming as worries over the economic outlook threaten to crimp spending.

Industry players are worried that the impact of the current downturn will be worse than that during the Sars outbreak in 2003, or the Asian financial crisis a decade ago.

Speaking on the sidelines of the Singapore Retailers Association's (SRA) glittering annual ball last night, several said they expect smaller retailers who offer mid- to high-priced items, such as gourmet food or high-street fashion, to be hardest hit.

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