Retail News CRM

Author: Mei Ling Tan

  • Starbucks opens its largest store in South Korea

    Starbucks opens its largest store in South Korea

    Starbucks South Korea has opened its largest store yet, celebrating the brand’s 21st anniversary in the country.

    Located in Yangpyeong, Gyeonggido near the Namhan River, the store spans three floors and occupies a 1203sqm area and has a design unlike any other in the market.

    “The new store is a reflection of Starbucks commitment to offering more ways for customers in Korea to enjoy the Starbucks Experience,” the company said in a statement.

    The Yangpyeong store is also the first Starbucks in the country to feature a Reserve coffee bar, Teavana bar and drive-thru format together.

    The company said the store is “a new experience” for local customers, incorporating an interactive space and the convenience of the drive-thru. Starbucks is to invite local talent to perform on the store’s rooftop to celebrate the launch.

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  • StanChart’s Asia Human Capital Rejig

    StanChart’s Asia Human Capital Rejig

    Standard Chartered in Asia has been rejigging its mix of employees in recent years with a focus on upping headcount in certain markets while increasing digital penetration in others. Since 2018, Standard Chartered has steadily increased its number of employees in Singapore by 1,200 to reach 10,000 while maintaining its global headcount relatively stable at around 85,000 (85,389 as of June 30 this year).

    And the bank could be set to further expand its physical presence after it was awarded by the Monetary Authority of Singapore (MAS) earlier today with the city-state’s first Significantly Rooted Foreign Bank» (SRFB) status which qualifies it for additional privileges.

    Under the SRFB status, Standard Chartered will now be allowed to set up to 50 place of businesses (POBs), of which up to 35 can be branches, according to a statement. The MAS will also enhance the SRFB framework so that future businesses that substantially exceed the criteria for significant rootedness in Singapore will be allowed additional privileges including the ability to establish a separate subsidiary to develop alternative business models.

    We are honored to be awarded the SRFB status by the MAS, said Standard Chartered Singapore CEO Patrick Lee in a separate statement. We see Singapore as a key market and are fully committed to future investments. We are also aligned with the government’s and the MAS’s strategy to grow Singapore’s stature as a global financial services hub, with leading and differentiated value-added areas of expertise.

    The bank noted that it was a «key employer» in Singapore’s financial industry and quantity aside, it highlighted a qualitative focus and commitment to growing «future-ready talent.

    Of the new jobs added, more than 1,200 roles are allocated to future growth areas including digital banking, international banking, cloud technology, artificial intelligence (AI) architect, and API development.

    The bank will also invest another S$5 million to boost talent development and reselling efforts to support employees as the job market continues to undergo disruption in addition to ongoing participation in industry initiatives.

    Standard Chartered’s roots in Singapore trace back over 160 years when it set up its first branch in 1859 under its former name, Chartered Bank of India, Australia and China.

    Since then, it has steadily built its presence in before becoming the first and only global bank to incorporate all its businesses in the city-state and adopt it as its global operational and innovation headquarters. It is also home to a significant portion of its management team and an $80 billion balance sheet backed by $6 billion of capital – also the largest amongst any foreign banking subsidiary.

    In contrast, Standard Chartered has maintained a relatively stable headcount of 600 in Hong Kong, according to its chief executive for the city, Mary Huen Wai-yi. Hong Kong has been faced with political uncertainty, further intensified by the recent enactment of the national security law which Standard Chartered, alongside HSBC, has publicly supported as means to inspire calm and stability.

    We are convinced that more collaboration – not less – is the best way to find a sustainable equilibrium in these complex situations, but we do not expect an easy or quick resolution, said Standard Chartered group chairman José Viñals in a statement from its first-half results, which saw global profits sink 33 percent.

    We do believe, however, that Hong Kong will continue to play a key role as an international financial hub and we are fully committed to contributing to its continued success,” he added.

    Within the Greater China business, Standard Chartered is set to significantly rejig its regional mix of employees with Hong Kong again set to make up an even smaller share. The bank recently announced its intention to set up a Greater Bay Area center, ready for operations this quarter, in Guangzhou with $40 million in investments and plans to grow headcount to 1,600 by the end of 2023.

    The Greater Bay Area is a core area of focus for Standard Chartered, and we’re using our talent, technology and deep client knowledge to develop innovative new products and services to support the GBA initiative, Standard Chartered CEO Bill Winters said earlier this month.

    The launch of our new Greater Bay Area Center is a shining example of us bringing together our strength and expertise in the Belt & Road initiative, yuan internationalization and wealth management, to provide seamless cross-boundary banking services for individuals and corporate clients in the region.

    Although Hong Kong employees’ share of regional or global headcount could be set to fall, the bank has other plans to strategically cover the market without adding bodies.

    The bank is readying for an official launch of its licensed virtual bank in the city – jointly owned by telecom firms PCCW and Hong Kong Telecom, and online travel agency trip.com – as one of eight players approved to enter the digital lending market. It is now undergoing a trial to obtain feedback from select customers before rolling out to the wider public.

    Interestingly, Hong Kong and Singapore were previously both suggested as potential headquarters for Standard Chartered which is based in London but generates nearly all of its profits from emerging markets.

  • Tata Warns Of Another Loss At JLR As Demand Slow To Pick Up

    Tata Warns Of Another Loss At JLR As Demand Slow To Pick Up

    India’s Tata Motors warned that its luxury car unit, Jaguar Land Rover (JLR), may post another quarterly loss as the coronavirus crisis saps demand and cripples its supply chain. The pandemic has taken a heavy toll on automakers globally and piled pressure on Tata Motors, which has been trying to improve JLR’s cash flows by reining in costs after geopolitical and regulatory challenges hurt the British carmaker’s sales.

    Tata Motors raised its cost-savings target for JLR by 1 billion pounds ($1.31 billion) and now expects to save 6 billion pounds in costs by March 2021, Chief Financial Officer PB Balaji said on Friday, noting that it had already achieved savings of 4.7 billion pounds.

    Unit sales at JLR, which accounts for most of the company’s revenue, fell over 42% during the quarter

    “As much as we take on costs and reduce cash burn, demand is a very important lever for this business,” Balaji said, adding that even though sales were improving demand was not coming back in a hurry.

    Unit sales at JLR, which accounts for most of the company’s revenue, fell over 42% during the quarter, while its EBITDA (earnings before interest, tax, depreciation and amortization) margin was 3.5%.

    Earlier this week, JLR named ousted Renault boss Thierry Bollore as its next chief executive, with a mission to return the carmaker to profit. Balaji said while JLR’s electrification plans are on track, the company may drop or go back to the drawing board on certain projects that are not “great on financial returns”. He did not specify which projects were being re-looked at.

    JLR’s electrification plans are on track, said Chief Financial Officer PB Balaji

    Tata Motors reported a consolidated net loss of 84.38 billion rupees ($1.13 billion) for its first quarter, compared with a loss of 36.98 billion rupees a year earlier. The company said it expects a gradual pickup in demand and an improvement in supply in the second half of fiscal 2020-2021.

  • Hong Kong beauty chain Bonjour warns of another loss

    Hong Kong beauty chain Bonjour warns of another loss

    Bonjour Holdings has warned of a loss as high as US$12 million for the half-year to June as it weighs the impact of protest activity and the Covid-19-driven lockdown of the border with Mainland China.

    In a profit warning, the health & beauty retail group said a preliminary, unaudited review of its results suggests a loss “not less than 300 percent” of that of the same period last year when it finished the period $3.8 million in the red.

    Besides the decline in inbound tourists to the territory, local consumer sentiment weakened during the six months.

    The company has also booked impairment provisions related to assets and property, and inventories resulting from losses at its retail stores, but such provisions are by nature noncash and have no impact on the group’s cash flow or liquidity.

    Confirmed results will be released at the end of this month.

    In April, Bonjour said it was delisting slow-moving products and had trimmed its store network to compensate for falling sales after reporting a full-year loss of $16.7 million.

    In May, the husband-and-wife founders of the company stepped back from their senior leadership roles, with Dr Wilson Ip Chun Heng resigning as chairman and CEO, and his wife, Chung Pui Wan, stepping down as vice-chairman. Both remained on the board.

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  • I.T Limited sales, margins eroded due to Covid-19 lockdowns

    I.T Limited sales, margins eroded due to Covid-19 lockdowns

    Hong Kong-headquartered fashion retailer I.T Limited says its sales have fallen in all of its markets, with the US and Japan the worst affected. Same-store sales of its Hong Kong and Macau stores fell by 49.1 percent in the three months to May 31, while US and Japan store sales plunged 66.1 percent. In Mainland China, the sales decline was a less dramatic 11.8 percent.

    I.T Group operates its own brands, including Chocolate and 5cm, concept stores Izzue and Double-Park; international brands it has local licenses for including Kurt Geiger and Camper; and A Bathing Ape, which the company rescued from Japanese owners in 2011.

    Chairman Sham Kar Wai has warned that the company will post a loss for the first quarter compared to a profit for the same period last year.

    “It remains difficult for the group to precisely predict and quantify the negative impact that will result from the Covid-19 pandemic and social unrest around the world, but we expect our business will continue to face strong headwinds for the remainder of the year,” he said in a stock-exchange filing.

    Stores were closed or forced to trade for reduced hours, in most markets due to the Covid-19 crisis.

    “Although our initial strategy was to focus on full-price sales and reduce discount related activities in order to secure gross margin, we eventually had to increase mark-downs to boost sales volume amidst an incredibly difficult trading environment,” he said.

    Gross profit margin fell by 8.8 percent globally, with a 9.5-per-cent decline in Hong Kong and Macau resulting in a final margin of 49.9 percent. Despite the size of the sales decline in Japan and the US, gross margin remained higher than in any other market at 64.5 percent, down 7.8 percent in the quarter. In Mainland China it fell 8.7 percent to 55.3 percent.
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  • Trump gives Microsoft the green light to bid for TikTok

    Trump gives Microsoft the green light to bid for TikTok

    No, we don’t think that the TikTok story is the only game in town. However, it isn’t every day when an app with over two billion installations becomes the subject of a takeover battle involving a huge U.S. company and the President of the United States. This afternoon, Microsoft’s official blog reported that following a conversation between Microsoft CEO Satya Nadella and President Donald Trump, Microsoft has decided to continue talks with TikTok’s corporate parent ByteDance in an attempt to purchase the short-form video app. Microsoft says that it would like to complete discussions with ByteDance by September 15, 2020.

    There are several possible reasons why the Trump administration has been seeking to ban TikTok in the U.S. In the states, several Chinese companies are considered national security threats with fears that they will collect personal data and send it to Beijing. Earlier this month Secretary of State Mike Pompeo compared the attempt to ban TikTok with other bans placed against Chinese manufacturers Huawei and ZTE. “Whether it was the problems of having Huawei technology in your infrastructure we’ve gone all over the world and we’re making real progress getting that out. We declared ZTE a danger to American national security. With respect to Chinese apps on peoples’ cellphones, the United States will get this one right too.”

    Microsoft said on Sunday that it “fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury.” Some of those economic benefits include the addition of 10,000 new jobs that TikTok intends to bring into the U.S. over the next three years, according to a TikTok video posted on the app this morning by U.S. General Manager Vanessa Pappas.

    TikTok allows users to create 15-second or 60-second videos with comedic content, singing, dancing, and protesting. It is used by teens, pre-teens, and yes, even older folk. With many people stuck inside during the pandemic, TikTok became a popular app for those seeking a way to pass the time of day. If the deal is allowed, Microsoft will own and operate TikTok in the United States, Canada, Australia, and New Zealand. The software giant could also ask some other firms to be minority investors. Microsoft also said, “This new structure would build on the experience TikTok users currently love while adding world-class security, privacy, and digital safety protections. The operating model for the service would be built to ensure transparency to users as well as appropriate security oversight by governments in these countries.”

    Microsoft said that it would make sure that any American TikTok user’s personal data would remain in the U.S. Any data backed up or stored on servers outside of the states would be deleted by Microsoft. The software giant also made sure to let the president know how much it appreciated his efforts in allowing the company to make a bid for TikTok. The company wrote, “Microsoft appreciates the U.S. Government’s and President Trump’s personal involvement as it continues to develop strong security protections for the country.”

    There is no guarantee that a deal will be completed. Microsoft says that it does not plan to comment further on a possible deal with ByteDance for TikTok until a definitive agreement has been made. While it is in negotiations with TikTok parent ByteDance, Microsoft says that “during this process, Microsoft looks forward to continuing dialogue with the United States Government, including with the President.”

    TikTok is estimated to be valued at $50 billion-$100 billion. Microsoft’s market capitalization is approximately $1.55 trillion.<

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  • Rolls-Royce New Game Is Inspired By The Wraith Kryptos Collection

    Rolls-Royce New Game Is Inspired By The Wraith Kryptos Collection

    The Rolls-Royce Wraith Kryptos Collection was unveiled recently and we told you that the folks that buy this limited edition model will be in for a surprise because they get to decode the message that’s in there. But now, Rolls-Royce wants to include others too and that has been made possible thanks to an interactive online game. This will be available on the company’s website for members of the public and enthusiasts around the world to enjoy.

    They can take part in a cryptic challenge, consisting of four levels, each getting progressively harder. The first ten individuals to complete the game will receive their very own personalized Rolls-Royce treadplate.

    An online game has been devised to entertain and amuse Rolls-Royce enthusiasts who will not be lucky enough to attempt to solve and decipher the code of Wraith Kryptos Collection for themselves.

    Consisting of four different levels, players are initially invited to guide an orb through a maze by tilting their mobile device in the direction they wish to travel, in a time-pressured challenge. Next, a series of questions will reveal just how keen the cryptographer player really is.

    The third level will test the observation skills of the participant – only the most cunning will succeed! The final phase consists of cryptographic ciphers, designed to boggle and bewilder. This level is the reserve of the most agile and determined minds alone.

  • HSBC’s First-Half Profit Dive Misses Analyst Forecasts

    HSBC’s First-Half Profit Dive Misses Analyst Forecasts

    HSBC’s pre-tax profits plummeted in the first half by 65 percent year-on-year as the Asia-focused lender further boosted loan loss provisions to ready for more headwinds. HSBC registered $4.32 billion in pre-tax profits compared to $12.41 billion in the same period last year and analyst forecasts of $5.67 billion, according to compilations made by the bank.

    Given the current high degree of uncertainty, we are continuing to monitor closely the implications on our business plan and medium-term financial targets, while also undertaking a review of our future dividend policy, HSBC’s chief executive Noel Quinn said in a statement.

    The bank also expected total credit impairment provisions for the year to reach between $8 billion and $13 billion, higher than previous forecasts. Provisions reached $6.9 billion in the first half after the bank said aside $3 billion in the first quarter, compared to just $1 billion in the first half of 2019.

    The bank also warned of expected damage to its core capital ratio as worsening credit ratings impact its risk-weighted asset ratio.

    Financial and economic headwinds aside, HSBC also highlighted the risk of rising U.S.-China tensions heightened by the national security law and the Hong Kong Autonomy Act.

    Like our clients, HSBC has to operate in a difficult geopolitical environment. Current tensions between China and the US inevitably create challenging situations for an organization with HSBC’s footprint, Quin added.

    However, the need for a bank capable of bridging the economies of east and west is acute, and we are well placed to fulfill this role. We will face any political challenges that arise with a focus on the long-term needs of our customers and the best interests of our investors.

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  • UOB Launches Finance Academy

    UOB Launches Finance Academy

    United Overseas Bank launched the UOB Finance Academy, a training and development program in Singapore focused on equipping all employees in the bank’s finance function with the soft and technical skills required to become future leaders in their field.

    The UOB Finance Academy, which was designed in-house, builds on Better U, the bank’s group-wide learning and development program accredited by the Institute of Banking and Finance Singapore (IBF), according to a media release sent on Monday.

    Better U helps UOB employees build five core competencies which the bank has identified as essential for its people to remain relevant in the digital future. These competencies are having a growth mindset and complex problem-solving skills, as well as skills in the areas of digital innovation, human-centered design and data storytelling.

    Once members of the bank’s finance team have completed Better U, they are then able to progress through the UOB Finance Academy’s structured three-month learning program which is designed to equip them with the skillsets and tools to help them advance in their careers.

    As with so many jobs, the role of a finance professional is changing as digital innovation impacts more areas of work. The UOB Finance Academy charts clear and achievable milestones for our people in UOB’s finance function to develop the necessary knowledge, mindset and skillsets to progress towards leadership roles in the finance industry, Lee Wai Fai, Group Chief Financial Officer, UOB, said.

    Participants will also sharpen their financial acumen through modules that encourage an analytical approach to evaluate strategies and risks, as well as accounting and bank financial analysis. Through the UOB Finance Academy, participants can also choose to develop specialized skills in areas such as asset and liability management and project management

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  • Lawson unveils portable convenience stores in China

    Lawson unveils portable convenience stores in China

    Japanese convenience-store chain Lawson is launching a series of prefabricated stores in China.

    The brand will launch the service from this week, with the first outlet opening in Nanjing. Using the prefab structures will reduce construction costs by 40 percent and allow for flexible growth, the company says. Around 10 stores are expected to be operational by the end of the year.

    There are two varieties of Lawson’s prefab buildings, which were created in partnership with Panasonic. The stores have heat insulation to cut power costs and can be relocated to other areas if a location closes. The larger store layout is a little smaller than a regular 80sqm minimart, while the smaller is a kiosk suitable for transit stations.

    The stores may prove a viable counter to the rise of online shopping during the coronavirus era, owing to their ability to open in small areas that enjoy considerable foot traffic.

    Lawson, which operates 2700 outlets in China, has indicated plans to roll out prefab stores in Japan in the future as well.

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  • Li & Fung, JD to invest $100 million in developing a future digital supply chain strategy

    Li & Fung, JD to invest $100 million in developing a future digital supply chain strategy

    Chinese e-commerce giant JD has invested US$100 million in Li & Fung via newly issued capital as a move to further develop its digital supply chain.

    The move is expected to assist Li & Fung expands its own business within the Chinese mainland via private-label initiatives, using the JD relationship and its partnership with Singapore-based logistics solutions provider GLP to further develop its end-to-end digital supply chain. JD’s own proprietary supply-chain technologies have already contributed to fully integrated digital retail and supply-chain platforms designed to serve its omnichannel strategies.

    “Amidst the continuing digital disruption to retail and the ongoing global trade tensions, compounded by the dramatic impact of Covid-19, the global retail supply chain has become more and more complex,” read a statement by the firm. “With the breadth and depth of its global sourcing and production ecosystem, pan-Asia logistics network, and industry-leading digital product development capabilities, Li & Fung is helping global retailers and brands navigate a highly uncertain and ever-changing macro environment.”

    “Our goal to create the supply chain of the future and to improve the lives of 1 billion people in our global supply chain remains more relevant than ever in this turbulent world,” said Li & Fung CEO Spencer Fung. “The partnership with GLP and the addition of JD will be instrumental in further strengthening Li & Fung.”

    The firm will remain under the control of the Fung family who are retaining 60 percent of voting shares.

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  • Jason Wu opens first store in Shanghai

    Jason Wu opens first store in Shanghai

    Taiwanese-Canadian designer Jason Wu has opened his first global flagship boutique in Shanghai, China.

    Located at IFC Mall, the flagship store features a sophisticated design created by architect Andre Mellone. The studio previously designed a Jason Wu shop-in-shop at Saks Fifth Avenue in New York and the Jason Wu fragrance bottle.

    The store facade features a floor-to-ceiling glass wall and a digital screen illustrating the brand’s name. Gold color and marble patterns are used liberally in the Jason Wu boutique’s design such as gold metal racks and frames, gold rose marble walls, and marble display tables.

    A black wooden table and a large carpet are placed at the store’s center.

    The Jason Wu Shanghai boutique houses a wide range of fashion items and fragrances.

    Jason Wu is known for designing dresses worn by former First Lady Michelle Obama on several occasions, including those worn during the first and second inauguration of her husband, President Barack Obama.

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  • Skoda’s First-Half Deliveries Fall

    Skoda’s First-Half Deliveries Fall

    Skoda Auto sees signs of recovery after first-half deliveries crashed 31% amid coronavirus lockdown measures, the Czech carmaker owned by Volkswagen said on Friday.

    The company, a bellwether for the Czech economy which contracted by a record 10.7% year-on-year in the second quarter, said it expected global markets to stabilize gradually as long as the coronavirus pandemic does not worsen significantly.

    Skoda delivered 426,700 cars from January to June while sales revenue fell by a quarter to 7.55 billion euros ($8.95 billion)and operating profit sank 72% to 228 million euros. Skoda plans to roll out the largest model campaign in its history, with 30 new models – including electric vehicles – launching between 2019 and 2022.

    It said that its program to restart operations since June had shown positive effects and said incoming orders had started to exceed last year’s level. Demand at European dealerships had increased, it added.

    “In June we were able to make significant gains compared to the previous months,” said Skoda board member for sales, Alain Favey. “We expect a recovery in the third quarter and anticipate a return to the previous year’s level in the fourth quarter.”

    Skoda, the country’s biggest exporter that delivered 1.24 million vehicles in 2019, said it was continuing to roll out the largest model campaign in its history, with 30 new models – including electric vehicles – launching between 2019 and 2022.

    The company’s Czech factories shut for 39 days after the coronavirus pandemic hit Europe in March, a major blow to an economy that relies heavily on the car industry.

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  • Burberry teams with Tencent to launch world-first social-retail store

    Burberry teams with Tencent to launch world-first social-retail store

    Luxury fashion label Burberry has teamed with technology giant Tencent to launch its first social retail store in Shenzhen, China. Located in the new Shenzhen Bay MixC development, the Burberry social store features a unique design with a variety of materials and textures ranging from plywood to mirror and high-gloss finishes. Occupying a 539sqm area, the storehouses 10 different rooms.

    The Burberry social store offers a wide range of items including the brand’s latest collections and pieces exclusive to the Shenzhen store. All the stock is labeled with QR codes which when scanned show information on the customer’s digital screen. This is the brand’s first store to have QR codes on product swing tags.

    When entering the store, customers are welcomed by an interactive window. Inspired by the brand’s mirrored runway, the window illustrates the visitors’ shape and response to body movement. The window changes through the seasons to reflect the latest collections and house codes.

    Burberry’s fitting rooms feature three different concepts reflecting the label’s house codes – the Burberry Animal Kingdom, Reflections, and the Thomas Burberry Monogram.

    Named after the fashion house’s founder, Thomas’s Cafe features a modern yet elegant design with high-gloss tones of beige, curtains, and chamfered mirroring. The cafe can be converted into a community space for social events such as workshops, exhibitions, and live performances.

    The social store also houses a Trench Experience space, designed with digital technology to “bring Burberry’s heritage of exploration to life and creating unique and personal content for the customer to share on social media”.

    “This store explores this relationship, blending the digital and the physical realms in an exciting new concept,” said Riccardo Tisci, chief creative officer at Burberry.

    “I wanted to bring this love of the outdoors to life through all the elements of the store, which can be seen in the Burberry Animal Kingdom prints in the cafe as well as in the fully immersive Trench Experience and even in the small details of the design materials. I really wanted to draw upon these familiar house codes to bring our community together in an interactive journey of discovery,” Tisci said.

    “When it came to innovating around social and retail, China was the obvious place to go to, as home to some of the most digitally savvy luxury customers,” said Marco Gobbetti, CEO at Burberry.

    The Burberry social retail store offers an interactive experience through Tencent’s WeChat mini program which allows customers to unlock exclusive content and personalized experiences.

    “… Burberry’s social retail store in Shenzhen is a place of discovery that connects and rewards customers as they explore online and in-store. It marks a shift in how we engage with our customers and we can’t wait to share this innovative experience with the world,” Gobbetti said.

    The mini-program also provides a platform where customers can explore the store and product, book in-store appointments, and reserve events or tables in the Thomas cafe and community space.

    The WeChat mini program also features a rewards program called “social currency” where customers are allocated characters and can engage with others. Customers can unlock exclusive content and personalized experiences by building their social currency. Rewards range from cafe menu items to mini-program content.

    The Burberry social retail store is a unique space to test and learn, and to trial innovation that can be expanded to the rest of the Burberry network in China, the company said in a statement.

    Burberry signed an exclusive partnership agreement with Tencent last year to develop social retail in China. The Shenzhen social store is the first step in the partnership, taking interactions from social media into a physical retail environment.

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  • Sheng Siong Group boosts sales during virus lockdown

    Sheng Siong Group boosts sales during virus lockdown

    Singapore consumers’ migration from food halls to supermarkets during the Covid-19 pandemic has proven a windfall for grocery operator Sheng Siong Group.

    Sales for the June quarter surged 75.8 percent to US$304.3 million, gross profit margin improved from 27.4 percent to 28.1 percent and net profit soared 150.7 percent year on year to $33.6 million.

    While new stores accounted for 13.3 percent of the 75.8-per-cent increase in sales the vast majority of the balance came from same-store turnover.

    “This was mainly driven by the elevated demand arising from Covid-19, as consumers stocked up to hedge against the risks of disruption to the supply chain and the implementation of the “Circuit Breaker” restricting people’s movements and forbidding eating out, thereby benefiting retailers of fresh and uncooked food,” the company said in a statement.

    However, the company has warned the gradual easing of restrictions on Singaporeans’ movements it expects the elevated demand for goods fuelled by Covid-19 will ease.

    “Competition in the supermarket industry is expected to remain keen and challenging among the traditional brick-and-mortar operators and e-commerce platforms which seem to have gained better visibility because of the Circuit Breaker,” the company said. “Demand may be affected if post-Covid-19, economic recovery is slow or remains depressed.”

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