Retail News CRM

Category: General

Retail News Asia is committed to providing both local and global retailers with the latest General Retail news throughout the Asian market. This on a daily base.

  • Saigon Co.op takes over Auchan Vietnam

    Saigon Co.op takes over Auchan Vietnam

    Local retail group Saigon Co.op has acquired the Auchan Vietnam business.

    Auchan will transfer its 15 closed store spaces and the three remaining stores still trading in Ho Chi Minh City’s Districts 7 and 1, along with its e-commerce and supply-chain retail system to Saigon Co.op.

    According to the arrangement, Saigon Co.op will renovate the closed stores and restore operations under their own brands which include Co.opMart, Finelife and Co.opXtra.

    The three stores still trading will maintain their Auchan branding until next Lunar New Year.

    In May, Auchan decided to pull out of Vietnam after consistent losses.

    Lees ook:

  • South Korean retail sales up as summer season arrives

    South Korean retail sales up as summer season arrives

    South Korean retail sales increased by 3.4 percent year on year in May.

    Online sales reportedly surged by 18.1 percent in May, far faster than offline sales, which increased buy just 1.9 percent.

    A government spokesperson said the increase in sales for the month was driven by growing demand for seasonal products such as air conditioners, as summer arrived.

    There was also strong demand for electronics and gifts for Parents’ Day and Children’s Day.

    May’s 3.4 percent rise in South Korean retail sales was below the mean average monthly rate of 3.9 percent recorded from 1996 until this year.

    Lees ook:

    Lees ook:

    Lees ook:

  • Cebu Pacific plans to squeeze more seats into economy

    Cebu Pacific plans to squeeze more seats into economy

    One of the biggest travel-trade talking points of the recent Paris Air Show was Cebu Pacific signing a memorandum of understanding (MOU) to buy 31 Airbus planes – 16 of which will be A330-900s, with 460 seats in an all-economy configuration squeezed into each. Fellow budget airline AirAsia, by comparison, unveiled its first A330-900 (aka the A330neo) at the show, with 377 seats in two classes, while the plane’s launch customer, TAP Air Portugal, began operating with 289 seats in three classes last November.

    It has been suggested that the upside of squeezing so many people onto one plane might be a reduced per-passenger carbon footprint, and it’s easy to imagine airlines using this as an excuse to crowbar ever more passengers aboard in future. Cebu Pacific’s MOU also included 10 of the A321XLR (Xtra Long Range), which was introduced at the show and is expected to take passengers back to the days of the Boeing 707 and Douglas DC-8, with cramped single-aisle long-haul flights, in about four years from now.

    Lees ook:

  • Line Friends opens pop-up store at Changi airport

    Line Friends opens pop-up store at Changi airport

    Line Friends has opened a pop-up store at Changi Airport Terminal 3 Departure hall.

    Set to open until August 8, the store offers the latest summer collections of Line Friends characters featuring Brown, Choco, Sally, Cony and more on one half.

    The other half is dedicated to licensed merchandise featuring all the eight BT21 characters, which is designed by K-pop band BTS, including table figurines, cushions, and keychains.

    The store will also stock BT21 x Uniqlo collection and a slew of Singapore-exclusive products including plushies and comfortable cushions.

    Lees ook:

  • Robinsons Retail favours pets over fashion

    Robinsons Retail favours pets over fashion

    Robinsons Retail is looking to shrink its fashion business as competition with cheaper chains gets tougher.

    “We are shrinking fashion, for it has become very difficult,” said the firm’s CEO Gokongwei-Pe. “There are other brands that came in who are more progressive and cheaper. We are already reducing the number of stores and we have to think if we move out altogether.”

    The firm is reporting stronger returns from pet, health and beauty products where there is growing demand.

    “Pets have become very big,” added Gokongwei-Pe. “Dogs now are very spoiled. Just look at Instagram and Facebook, it’s all about dogs. You should put money where the money is, which is food, drugstores, hardware, and growing businesses like pets and beauty.”

    The firm is also making moves into high-end groceries as well as growing its beauty and pet care franchises overseas. It is reportedly seeking 15 per cent annual revenue growth in these sectors within five years.

    Robinsons Retail is also investing PHP3–5 billion (US$58.59–97.65 million) on expanding its store network by 100–150 outlets per year from its current 1911 stores during the same period.

  • Hong Kong retail sales declined again in May

    Hong Kong retail sales declined again in May

    Hong Kong retail sales fell again in May, but the rate of decline was significantly less than in April.

    According to the Census and Statistics Department the value of retail sales in May, provisionally estimated at HK$40 billion (US$5.1 billion), decreased by 1.3 percent year on year, well below April’s 4.5 percent decline.

    For the first five months of this year, Hong Kong retail sales were down 1.8 per cent compared with the same period last year. After netting out the effect of price changes over the same period, sales for the five months were down 2.2 per cent.

    For the three months to May, sales fell by 0.8 per cent.

    For once, the jewelry, watches and valuable gifts category – which traditionally has the greatest effect on overall retail sales fluctuations – registered one of the lowest falls in May, down 2.7 percent.  Apparel sales fell 4.6 per cent, electrical goods by 14.8 per cent, optical shops by 11.3 per cent, furniture by 1.3 per cent and supermarket sales by 0.8 per cent.

    In contrast, sales of medicines and cosmetics rose 1 per cent, of food, drinks, alcohol and tobacco by 3.1 per cent, footwear and accessories by 1.6 per cent, Chinese medicines by 0.7 per cent and books, newspapers, stationery, and gifts by 0.1 per cent.

    A government spokesman said narrower decline of Hong Kong retail sales in May was partly due to the late timing of the Labour Day holidays in Mainland China this year, which had led to a visibly larger year-on-year rise in visitor arrivals during the month.

    “Overall, the performance of retail sales remained subdued in recent months.”

    Retailers will be waiting for the June figures, the month when the protests over the extradition bill stepped up, disrupting access to stores on Hong Kong Island at certain times and possibly dissuading overseas visitors.

    The spokesman said that in the near term, the outlook for retail sales will likely be clouded by the still-cautious consumption sentiment amid an uncertain global economic environment. “Nevertheless, the sustained expansion in inbound tourism and the largely stable local labor market should continue to provide some support.”

    Lees ook:

    Lees ook:

    Lees ook:

  • Bleak reaching for Hong Kong luxury goods market

    Bleak reaching for Hong Kong luxury goods market

    Analysts are warning of challenging times ahead for the Hong Kong luxury goods market.

    In a research note, Kathryn Parker and Flavio Cereda, equity analysts at Jefferies, say sentiment within Hong Kong has almost unanimously worsened since March due to the lingering effects of the trade war reducing high-quality tourism traffic into the territory, the rebalancing of prices after Mainland China’s VAT cut, ongoing Hong Kong protests and closer monitoring of the daigou by the central government.

    “We are concerned that there is an elevated reliance on mainland Chinese consumers within luxury stores in Hong Kong,” the pair said.

    Luxury-goods stores in Hong Kong commonly receive as much as 60 percent of their sales from mainland visitors – yet more and more mainlanders are choosing to shop at home where tax cuts have seen prices ease.

    “We were concerned to see further investment such as the opening of the new K11 Musea mall [in Kowloon], rather than a contraction of the retail footprint,” the analysts said.

    “Discussions with mainland Chinese consumers, particularly those in Shanghai, showed continued optimism in terms of both sales data and wider sentiment, which is despite the record-breaking first half.

    “An abundance of new malls within Hong Kong, Shanghai and Beijing means rents are not going up, but it is imperative that brands keep their store footprints dynamic and have a presence in the lux malls with the most traffic,” said Parker and Cereda.

    “All malls are increasing the proportion of food and beverage and experiences, such as cinemas and wellness, to drive footfall so there is relatively less space for retail.”

    While the Hong Kong luxury goods market suffered a downturn in the second half of last year, official retail sales figures for the first five months of this year show a modest 1.8 per cent decline against a higher base last year. But the latest figures are from May, prior to the acceleration of street protests in June and reflecting the later timing of the Mainland China Labour Day holiday period.

    Lees ook:

  • Flight Centre grows in Corporate Travel

    Flight Centre grows in Corporate Travel

    Australian travel retailer Flight Centre Travel Group has furthered its position in the European market, taking full ownership of corporate travel business 3Mundi, which operates in France and Switzerland.

    Flight Centre acquired 25 percent of the business in June 2017, though has worked with 3Mundi since 2015 through its FCM Travel Solutions corporate travel management network as a licensee.

    With the acquisition, Flight Centre’s corporate travel network now extends to the UK, Germany, France, the Netherlands, Ireland, Switzerland, Sweden, Norway, Finland, and Denmark.

    “France is an important business travel hub globally, and is now the world’s sixth largest corporate travel market, making it a significant future growth opportunity for our company,” Flight Centre managing director Graham Turner said.

    “We have worked closely with the 3Mundi team since 2015 and believe that this extension of our relationship will unlock further benefits – both for 3Mundi’s local customers and for FCM customers in general – and help us capitalize on this opportunity.”

    According to Turner, the deal will broaden 3Mundi’s reach, and give the business full access to Flight Centre’s corporate travel systems, products and customer offerings, while strengthening Flight Centre’s overall corporate network.

    3Mundi managing director Solenn Le Brazidec will continue to oversee the business’s day-to-day operations and has been appointed Flight Centre’s travel solutions’ general manager for France and Switzerland.

    “The incredible opportunity to wear the FCM brand for four years already has allowed us to grow and triple our turnover,” Le Brazidec said.

    “By now becoming a subsidiary of Flight Centre, we have a stronger global offering for our customers, a greater technological integration and more opportunities for growth.”

    3Mundi is not the first corporate travel business Flight Centre has invested in this year – having previously acquired a 25 percent stake in The Upside Travel Company, and becoming its largest individual shareholder.

    According to Flight Centre, during the six months to December 31, 2018, its corporate travel business generated about 37 percent of global total transactional value – about $4.2 billion.

    In late April, Flight Centre lowered its profit guidance for the 12 months to June 30, 2019, from between $390 million and $420 million to between $335 million and $360 million.

  • Officeworks staff vote for Increased Salaries

    Officeworks staff vote for Increased Salaries

    Officeworks staff have approved a new Store Operations Agreement that will introduce higher base pay and penalty rates and new leave entitlements for eligible team members.

    More than 80 percent of staff participated in the vote, which closed on Sunday night, with 97 percent voting in favor of the new Agreement, according to a release from Officeworks.

    “The new Agreement sees over-award terms and conditions retained, with improved conditions for both part-time and casual team members when it comes to securing work,” the Wesfarmers-owned retailer said in the release.

    As part of the four-year agreement, eligible team members will receive a 2 percent wage increase for the first two years and a 3 percent wage increase for the last two years, with the base pay rate continuing to clock in above the award. They will also be paid higher penalty rates on weekends and evenings.

    Team members will also be able to choose their superannuation fund, and they will be provided with two days of paid domestic and family violence leave.

    Officeworks’ new leave entitlements follow the introduction of its ‘Growing Families’ policy in March, which saw primary carers receive 12 weeks of paid leave, double the amount they received previously, and secondary carers receive two weeks of paid leave, where none was available before.

    It also entitles primary carers to 52 weeks of superannuation contributions and long-service-leave accrual, and secondary carers to two weeks of superannuation contributions.

    “Providing certainty about pay and conditions for our team members so that they can plan their work and life more effectively is important to us and has been an absolute priority for me and my team,” Sarah Hunter, Officeworks managing director, said in the release.

    “I’m really excited that our team has overwhelmingly voted in favor of this Agreement. It’s such an exciting time at Officeworks and creating more stability for our team members will help us make bigger things happen together moving forward.”

    The Agreement will now be lodged with the Fair Work Commission for approval; however, the retailer said yesterday that it would immediately increase the base pay rate by 2 percent for all team members covered by the agreement.

    Lees ook:

    Lees ook:

    Lees ook:

  • Toys ‘R’ Us Start Selling on eBay

    Toys ‘R’ Us Start Selling on eBay

    Less than a month after returning to Australian shores with a more focused, digital offering, Toys ‘R’ Us has launched on eBay, adding more than 4,000 items to the marketplace.

    According to Toys ‘R’ Us, the move represents an important facet of its omnichannel approach moving forward. It believes it will benefit from exposure to eBay’s more than 11 million unique monthly visitors.

    “Toys ‘R’ Us is an icon known and loved by Aussies of all ages, so we’re thrilled to welcome the retailer to eBay as it builds its online offering,” eBay’s senior director B2C of advertising and commercial partnerships Kristian Haigh said.

    “This partnership is a natural evolution and we’re proud to help Australian retailers by making it easier for shoppers to access their favorite brands, wherever and however they choose to shop.”

    The launch follows an eight-year partnership between eBay and Hobby Warehouse, which is partnering with TRU Kids, the US-based owner of Toys ‘R’ Us, on the toy store’s relaunch in Australia and New Zealand.

    Toys ‘R’ Us chairman Kevin Moore noted that some retailers see up to 40 percent of their total sales volume driven by the combination of marketplaces they partner with.

    “Online marketplaces are an important part of all online retailers’ service to shoppers,” Moore said.

    “Toys ‘R’ Us will continue to partner closely with eBay on toy sales and promotions, and other relevant marketplaces in the future.”

    Moore said the brand will explore and embrace new partnership opportunities as they arise.

    “We have been amazed at the positive reactions of the Toys ‘R’ Us digital re-launch… Hobby Warehouse has benefited from toy buyers looking for adult hobby items too.

    “We have had over 70 new suppliers contact us to list their range of toy and hobby brands on both sites.”

    Last month, the two companies announced a new format of Toys ‘R’ Us ‘experience centers’ will open across Australia and New Zealand in 2020.

    “Our mission is to encourage children to engage with as many forms of play as we possibly can,” Hobby Warehouse chief executive and Toys ‘R’ Us Australia director Louis Mittoni said.

    “Hobby Warehouse is a digital native with a keen understanding of how to accelerate and match the requirements of the modern shopper.”

    According to IBISWorld data, the toy and game retailing industry is expected to see a revenue drop of almost 16 percent over 2019, with the market expecting to generate around $740 million – down from the $880.2 million seen in the prior year.

    IBISWorld senior industry analyst Kim Do said the business’ shift away from physical retail and toward a more online-centric offer would make its re-entry to the Australian market smoother.

    At this point in time, it is unclear if Babies ‘R’ Us products will feature on eBay.

    Lees ook:

  • India, Indonesia Set $50 Billion Trade Target By 2025

    India, Indonesia Set $50 Billion Trade Target By 2025

    India and Indonesia on Saturday set an ambitious USD 50 billion target for bilateral trade over the next six years as Prime Minister Narendra Modi and President Joko Widodo discussed ways to deepen cooperation in a number of key areas including economy, defense and maritime security.

    The two leaders, who are in Osaka, Japan for the G20 Summit, met in the morning and discussed ways to boost bilateral ties and enhance cooperation in trade and investment. According to the Ministry of External Affairs spokesperson Raveesh Kumar, India and Indonesia set a USD 50 billion target for bilateral trade by 2025.

    Trade between the two countries in 2016 was USD 12.9 billion. It rose 28.7 percent to USD 18.13 billion in 2017 with Indonesia’s exports to India reaching USD 14.08 billion and its imports from India standing at USD 4.05 billion, according to Indonesia’s Central Statistics Agency.

    During his meeting between Prime Minister Modi and Indonesian President Widodo, the two leaders discussed ways to deepen bilateral cooperation in trade and investment, defense and maritime fronts. This was Modi’s first official engagement on the second day of the June 28-29 Summit.

    “Beginning Day 2 of the G20 Summit by meeting a valued friend. PM Narendra Modi holds talks with President Joko Widodo on ways to deepen India-Indonesia cooperation,” the prime minister’s office tweeted.

    In a tweet, Kumar said, “Taking forward the comprehensive strategic partnership. PM Narendra Modi had a productive meeting with Indonesian President Joko Widodo on margins of G20 Summit. Discussed expanding cooperation in trade & investment, defense, maritime, space & exchanged views on Indo-Pacific vision”.

    On Friday, Modi held bilateral and plurilateral meetings with many leaders, including US President Donald Trump, Russian president Vladimir Putin and China’s Xi Jinping.

  • Vietnam franchise opportunities Booming

    Vietnam franchise opportunities Booming

    Fourteen international brands are seeking for Vietnam franchise partners.

    The brands will gather at VF Franchise Consulting headquarters in Ho Chi Minh City on July 9 to meet with prospective area or master franchisees for the market. The franchises are in the food-and-beverage sector, education, services, and come from the US, Taiwan, Thailand, Singapore, India and Japan.

    Of the 14 brands, 11 are in the retail space:

    * ACE International, a home-improvement franchise with more than 5200 stores in more than 60 countries.

    * Little Caesars Pizza, a takeaway pizza chain from the US.

    * Coldstone Creamery, a premium ice-cream chain from the US.

    * Mango Tree, a Thai casual-dining business from Thailand.

    * Mango Chili, a fast-casual Thai dining chain.

    * Cha Ji Tang, a Taiwanese fragrant hot-and-cold herbal/flower tea cafe.

    * Yang Xiang Ting, a Taiwanese dim sum conveyor-belt restaurant concept.

    * Fidele, an American-inspired seafood, and pizza chain.

    * Bing Girl, a Taiwanese sweet dessert cafe.

    * Machida Shoten, a Japanese ramen chain.

    * Mennya Kokoro, a popular Japanese dry-ramen chain.

    According to Vietnam’s Ministry of Industry and Trade, there are already more than 200 foreign brands registered in Vietnam, and the number of international brands seeking to enter Vietnam continues to grow by 15–20 percent annually.

    “With nearly 95 million citizens, Vietnam has one of the fastest growth rates when it comes to franchising and licensing,” says Sean T Ngo, founder, and CEO of VF Franchise Consulting.

    “Franchises that do well are in the food-and-beverage, education, retail, and services sectors. Goldman Sachs predicts Vietnam will be the 20th largest economy in the world by the year 2050.”

    The leading Thai company, Mango Tree, will be seeking its first franchisee for its Vietnam branch.

    “Mango Tree is one of the world’s most innovative and best-known Thai culinary lifestyle brands, serving contemporary Thai cuisine from authentic classics to modern updates to old favorites, complemented by creative mixology, expertly curated music, and buzzing locations,” said Trevor MacKenzie, Mango Tree’s MD. The company has already expanded into Hong Kong and Macau.

    Taiwanese bubble-milk tea chain Cha Ji Tang already has stores in Taiwan and Vietnam, and is in discussions over outlets in the Philippines, Korea, and Japan.

    “We are very excited about introducing our successful F&B franchises (Cha Ji Tang, Bingirl, Yan Xiang Ting, and Fidele) to Vietnam,” said Andy Hsu, owner of Reng Feng Brands, the parent company of Cha Ji Tang.

    “Taiwanese food and drinks are very popular in many countries, and we believe many Vietnamese will appreciate and enjoy authentic cuisine from Taiwan.”

    The minimum investment levels for the 14 franchise brands range from US$300,000 to $3 million.

    Lees ook:

    Lees ook:

    Lees ook:

  • YouTube TV updated with new Features

    YouTube TV updated with new Features

    YouTube TV is getting an important update this week, which brings a lot of visual changes that should be beneficial for the vast majority of users. The most important change is progressive fast-forward, a new feature that lets YouTube TV users to skip ahead when they tap and hold the fast-forward button.

    For starters, you’ll be able to skip a minimum of 15 seconds per second, and a maximum of 1 minute per second. Aside from the progressive fast-forward improvement, the latest update brings a much cleaner Now Playing user interface, larger thumbnails and better suggestions.

    According to YouTube, the update should be available for 50% of the users, but apparently, there’s a way for those who aren’t among those selected to get the update to benefit from the new improvements.

    The workaround requires users to uninstall the app and reinstall it to get a new visitor ID, which might enroll them in the experiment. And the beautiful part is that you can do that more than once until you finally get the update.

    Obviously, the new YouTube TV app is rolling out to all platforms, so regardless of what device you’re using for Google’s service, you should be eligible for the latest update.

    Lees ook:

    Lees ook:

  • Dairy Farm Group agencies under Investigation

    Dairy Farm Group agencies under Investigation

    Dairy Farm Group has announced a review of its creative and media agencies across all its brands and markets.

    The process will see advertising and other agencies invited to pitch for branding and promotional services across brands as diverse as 7-Eleven, Giant, Cold Storage and Guardian, potentially expanding to Ikea in several Asia markets and Starbucks, which Dairy Farm has the rights to in Hong Kong, Singapore, Vietnam, Thailand and Cambodia, through subsidiaries.

    Those retail brands are currently serviced by a variety of agencies and there is no suggestion that Dairy Farm will opt for a single agency across all brands.

    A Dairy Farm spokesperson said: “As part of normal business practice, Dairy Farm, with its multiple banners and brands, from time to time reviews creative and media agencies to ensure we are getting the best service and value for our brands and customers.

  • Facebook to ban ads dissuading Americans from voting

    Facebook to ban ads dissuading Americans from voting

    Facebook issued an update on its Civil Rights Audit today and notes that the platform now bans messages that praise, support or represent white nationalism and white separatism. The report adds that Facebook posts should be banned even if those exact terms are not used. This would be done by picking out certain “hate slogans and symbols” connected to white nationalism and white separatism.
    Facebook says that it has also updated its policies to prevent it from being used to organize events that are meant to “intimate or harass people based on their race, religion, or other parts of their identity.” And the site will no longer allow messages to be posted that encourage others to bring weapons to certain events. Facebook says that it has a trial program running in the U.S. where some of its content reviewers focus on hate speech instead of the usual “bullying, nudity, and misrepresentation.” The company says that by focusing on hate speech, these reviewers will become more accurate in deleting such speech from the platform. Facebook hopes that these reviewers get better at determining which content should be left up, and which should be taken down. The report notes that some civil rights groups are concerned that some content meant to point out and fight discrimination is being taken down by mistake
    And to prevent a repeat of what happened during the 2016 presidential election when Russian trolls posted misinformation and tried to get Americans not to vote, Facebook has a number of departments working full time on the matter. They are working to ban ads that tell people not to vote and hope to have a new policy in place before the 2019 gubernatorial elections. Facebook is also treating the 2020 census like an election with technology at the ready to prevent interference on this important subject as well.
    “To protect elections, we have a team across product, engineering, data science, policy, legal and operations dedicated full time to these efforts. They’re already working to ban ads that discourage people from voting, and we expect to finalize a new policy and its enforcement before the 2019 gubernatorial elections. This is a direct response to the types of ads we saw on Facebook in 2016. It builds on the work we’ve done over the past year to prevent voter suppression and stay ahead of people trying to misuse our products.”-Facebook
    Facebook also played a big role in the election by allowing 87 million members to have their profiles used by Russian-American ex-Cambridge University professor Aleksandr Kogan who sold the data to Cambridge Analytica. The latter was a U.K. consultancy with ties to former Trump advisor Steve Bannon. Cambridge Analytica reportedly used this information to create psychological profiles helping the Trump campaign learn where it needed to beef up campaigning. It also posted pro-Trump ads on Facebook and YouTube while at the same time posting ads disparaging of Hilary Clinton.
    Facebook is expecting to be fined as much as $5 billion by the FTC because of the Cambridge Analytica scandal. The company had agreed to a consent decree with the regulatory agency back in 2011 that prevented it from allowing member profiles to be used by others without their consent. This agreement was broken when Cambridge Analytica obtained data on the aforementioned 87 million Facebook subscribers.
    Facebook’s Civil Rights Audit was conducted by civil rights advocate Laura Murphy. She also received support from the civil rights law firm Relman, Dane and Colfax. Today’s report follows the first Civil Rights Audit released last December.
    Lees ook:

    Lees ook: