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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.

  • AirAsia’s Tony Fernandes quits Facebook, citing social media ‘hate’

    AirAsia’s Tony Fernandes quits Facebook, citing social media ‘hate’

    AirAsia Group chief executive officer Tony Fernandes closed his Facebook account and said he may shut his Twitter page, citing “hate” being transmitted on the networks after the live-streaming of the terror attack on two mosques in New Zealand.

    “The amount of hate that goes on in social media sometimes outweighs the good,” Mr Fernandes said in a Twitter post on Sunday (March 17).

    “But on Twitter, I think the battle for me goes on.”

    Mr Fernandes said his Facebook account had 670,000 followers. He said in a Twitter post on Saturday that while he is “a big fan” of social media, he had to think hard about whether to remain on Facebook after Friday’s mass shooting that claimed 50 lives in New Zealand’s second-largest city of Christchurch.

    Mr Fernandes has about 1.29 million followers on Twitter and has tweeted more than 20,200 times since joining in 2008, commenting often on the performance of his companies and sports teams.

    He is the co-owner of English football club Queens Park Rangers. AirAsia is one of the region’s biggest discount carriers.

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  • Cebu Pacific leads in Philippines-Australia flights

    Cebu Pacific leads in Philippines-Australia flights

    Budget carrier Cebu Pacific has kept its market share lead in the Philippines to Australia route, a statement on Thursday showed. Citing data from Australia’s Bureau of Infrastructure, Transport and Regional Economics from November last year, Cebu Pacific said it cornered a market share of 39.5 percent versus close competitor Philippine Airlines, which had a 38.1-percent share.

    Cebu Pacific flies between Manila, Melbourne and Sydney. It also competes with Qantas, however the Australian carrier’s operations are limited to Manila and Sydney.

    “As more brand-new aircraft enters the CEB (Cebu Pacific) fleet, we are now in a position to seriously study the possibility of expanding to more destinations in Australia. We are encouraged by our performance in the Australia market,” Candice Iyog, vice president for marketing at Cebu Pacific, said in the statement.

    The airline said demand has been going up. For Nov. 2018, some 48,000 passengers flew between Manila, Melbourne and Sydney. The figure represented a growth of 31.3 percent. Cebu Pacific alone carried 18,971 passengers, or a year-on-year growth of 56 percent.

    Cebu Pacific flies five times weekly between Manila and Sydney and thrice a week between Manila and Melbourne. Cebu Pacific is the only low-cost carrier with direct service from Manila to Sydney and Melbourne.

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  • Tumi powers solid Samsonite sales growth, focus in Asia

    Tumi powers solid Samsonite sales growth, focus in Asia

    Hong Kong-listed luggage giant Samsonite International has achieved its seventh consecutive year of sales growth following its listing in 2011.

    Net Samsonite sales were up 8.4 per cent on a constant-currency basis to US$3.797 billion in the year to December 31. Profit attributable to shareholders rose by 23.9 per cent before extraordinary items saw that figure reversed into a 29.2 per cent decline to $236.7 million.

    Net sales in Asia increased by 10.2 per cent year on year to $1.324 billion, driven by the Tumi, American Tourister, Samsonite and Kamiliant brands. Tumi’s sales increased by 29.5 per cent, due in part to the full-year contribution from having taken direct control of Tumi distribution in certain Asian markets during 2017, as well as increased brand penetration in key Asian markets.

    A boost in marketing saw American Tourister’s net sales increase by 8.9 per cent in Asia, while Samsonite sales rose by a more modest 2.1 per cent. The group’s entry-level brand Kamiliant achieved a 44.1 per cent increase in sales in Asia as it continued to take market share from other entry-level brands across the region.

    Overall, Asia recorded second-half net sales growth of 6.5 per cent and full-year growth of 10.2 per cent.

    CEO Kyle Gendreau said sales in Japan rose by 14.1 per cent and in India by 28.5 per cent, in the second half, but these gains were partially offset by slower growth in China, which recorded just 3.2 per cent growth as consumer sentiment weakened amid concerns about trade relations with the US; and in South Korea where net sales decreased by 1.5 per cent in the second half.

    “Our growth was underpinned by positive performances from our core brands,” said Gendreau. “Tumi continued to perform ahead of expectations, making great strides in enhancing its international presence, with strong growth in Asia and Europe.”

  • Boardwalk Advendture vending machine cluster opens at Sentosa

    Boardwalk Advendture vending machine cluster opens at Sentosa

    Royal Vending has launched 35 cashless-enabled vending machines in a cluster it calls Boardwalk Advendture.

    Featuring more than 50 brands, Boardwalk Advendture is the first automation cluster set in a tourist attraction which the company says ushers in a new age of automated retail-tainment.

    “Boardwalk Advendture pushes the envelope and signals a new age of smart retailing,” said Jae Teo, Royal Vending MDr.

    “The innovative vending concepts of today can help hero made-in-Singapore brands, start-ups and host unexpected products. We hope that the Boardwalk Advendture will inspire other locales to embrace the next generation of retailing.”

    GOH meeting the artists from the Art Faculty by Pathlight

    GOH meeting the artists from the Art Faculty by Pathlight

    Starting off from VivoCity, the first ‘Fresh Point’ cluster kicks off with snacks, refreshments and essentials that visitors can grab to beat the heat and stay cool.

    The midway point houses a ‘Gift Street’ featuring quirky souvenirs, local crafts and tourist favourites from the city.

    There are other pleasant surprises dotted along the way, including ‘Fun Alley’ with game machines and outdoor must-haves that will keep both parents and children entertained.

    An air-conditioned ‘Foodie Zone’ is available at the end for tourists to re-fuel before heading into Sentosa.

    “With the support from Enterprise Singapore, Royal Vending was able to adapt its business model and curate a range of products that … enhance the customer experience as they walk down the Sentosa Boardwalk,” said Alan Yeo, director of Retail & Design, Enterprise Singapore.

    “We encourage more retailers to take the bold step to innovate and introduce differentiated retail concepts that can serve to delight their customers and ensure long-term business growth,” he added.

    Royal Vending’s Boardwalk Advendture will enrich the experience with 24-hour amenities such as food and beverage takeaways.

    Brands already signed up to the cluster include Art Faculty by Pathlight, beauty brand su:m37 and Singapore souvenirs and gift supplier Love SG.

    Royal Vending is one of Singapore’s largest vending machine companies, with more than 15 years of experience.

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  • Singapore retail sales up with 5.3 per cent

    Singapore retail sales up with 5.3 per cent

    Singapore retail sales rose by 5.3 per cent in January, underpinned by consumers stocking up ahead of the Lunar New Year holiday.

    When motor vehicles are included in the data, the official topline figure was a 7.6 per cent increase.

    Lunar New Year fell two weeks earlier this year compared with last year, which means some volume of pre-holiday stocking up was completed in January rather than the first half of February.

    According to Statistics Singapore, the total retail sales value in January was about S$4.2 billion. Online retail sales accounted for a solid 4.8 per cent of sales.

    Most retail industries recorded higher sales in January this year compared to last. Sales of apparel & footwear, medical goods & toiletries and by department stores, supermarkets & hypermarkets and food retailers registered growth rates of between 8 per cent and 10.5 per cent, as a result of higher demand during the Lunar New Year lead up.

    In contrast, sales of computer & telecommunications equipment declined 11.5 per cent, due in part to lower demand for mobile phones during this period.

    Sales of food & beverage services increased 5.9 per cent in January, reaching $862 million, compared to $814 million in January last year.

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  • Metro Myanmar launches with brand new warehouse

    Metro Myanmar launches with brand new warehouse

    The launch of Metro Myanmar business marks the German wholesaler’s 36th international market.

    The company has announced a warehouse in Yangon, aiming to serve local professional customers in the fast-growing hospitality and tourism sectors.

    “The food wholesale industry in Myanmar offers big potentials for Metro,” said the firm’s COO and management board member Philippe Palazzi, “and we believe our engagement in the trade sector will contribute to the local economic growth including the agriculture, tourism and hospitality sectors, and help upgrade the food wholesale infrastructure sustainably for the local community.”

    As distinct from its operations in other countries, Metro Myanmar will not run wholesale stores but provide a virtual shopping experience for customers through its e-commerce and delivery systems.

    Central to the wholesale operations in Myanmar is the 5800sqm warehouse situated in Thilawa Special Economic Zone outside Yangon. It is a modern logistics facility where incoming goods are received, stored, processed and packed in compliance with stringent quality and food safety standards for delivery to customers.

    Now right at the start of its operations, Metro Myanmar is already serving about 300 customers across the country that can now select from an assortment of more than 2000 food and non-food products. Customers place orders digitally through Metro’s website and mobile app, and the delivery is carried out with a fleet of modern temperature-controlled trucks.

    With local sourcing and food safety improvement a top priority for the country, the firm has been making continuous efforts to build up strong partnerships with local producers. These engagements include training as well as knowledge and expertise transfer for food suppliers and farmers across different regions and states in Myanmar. Over 90 per cent of the current workforce at Metro Myanmar, which is about 150 employees, is staffed by local talent.

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  • AirAsia launches cheap fares to Bali, a thriving tourism destination for many Australians’

    AirAsia launches cheap fares to Bali, a thriving tourism destination for many Australians’

    AirAsia is offering cheap one-way fares to a tropical Indonesian island, which has been tipped to take the top spot as the favourite destination for Australians. The budget airline announced its new four-time weekly flights between Perth and Lombok, east of Bali this week.

    As part of the announcement, AirAsia is offering one-way flights to Lombok from just $99. AirAsia has launched cheap one-way fares to Indonesia’s newest holiday hotspot Lombok, which has been tipped to take the top spot a favourite destination for Australians

    The budget airline announced its new four-time weekly flights between Perth and Lombok, east of Bali this week Jetsetters can snag the cheap flights until March 24, to travel between June 9 and October 26.

    Australian sun-seekers are expected to flock to the new destination, which has been described as ‘the new Bali’.

    Lombok, east of Bali, has gearing up to become the next tourism hotspot with promises of endless blissful beaches.

  • Malaysia’s KIP Group plans a few new malls

    Malaysia’s KIP Group plans a few new malls

    Malaysia’s KIP Group will establish three new malls within the coming three years, according to CEO Valerie Ong.

    The new locations in Raub, Kuantan and Sungai Petani will involve RM150 million (US$36.7 million) in gross development costs and cater to middle-mass-market demand. They are being located in growing markets where consumers still prefer physical buying over online purchases.

    “This means we will have a total of 12 shopping malls in our portfolio, including the six properties that had been injected to our listed entity, KIP Reit”, Ong said at the launch of the firm’s ninth shopping mall at Desa Coalfield Sungai Buloh.

    KIP Griup’s portfolio includes a shopping mall in Bangi and five KIP Marts in Tampoi, Kota Tinggi, Masai, Senawang and Malacca. It has also acquired Aeon Mall Kinta City, Ipoh in a RM208 million ($50.9 million) deal.

    According to Ong, Malaysia’s retail sector is expected to grow by 4.5 per cent to RM109 billion this year. She added that the Desa Coalfield mall has already achieved an 80 per cent occupancy rate in advance of its scheduled opening later this year.

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  • TradeGecko launches Founder Plan giving commerce startups the technology superpowers to build amazing businesses

    TradeGecko launches Founder Plan giving commerce startups the technology superpowers to build amazing businesses

    TradeGecko, a leading technology company that provides cloud-based inventory and order management solutions for small and medium-sized businesses (SMBs), today launched its Founder Plan, expanding access to its powerful technology platform to early-stage commerce businesses. 

    The plan enables founders to integrate TradeGecko’s leading inventory and order management solution from the get-go, so that they can build their commerce businesses to scale quickly. This limits cumbersome and complex manual processes that may inhibit future growth, empowering entrepreneurs with the ability to level the playing field with bigger competitors. 

    Recent research by TradeGecko has shown that operational challenges are among the biggest headaches for commerce entrepreneurs. 31 percent of businesses under US$1 million still rely on spreadsheets for their inventory management, with another 24% using pen and paper and 19% not using anything at all. On average, 90 hours a month are spent on backend functions such as order and inventory management as well as product sourcing.

    From as little as US$39 per month, subscribers of the Founder Plan can access a fully automated system that consolidates operations management functions into one central location. This ensures that inventory levels, sales channels and accounting systems are always up-to-date and accurate. It also gives commerce businesses the power to add new sales channels, integrates with other business-critical functions and provides analytics to support decision-making.

    “At TradeGecko, no founder gets left behind. Our mission is to give founders the technology superpowers to compete in the global market. The Founder Plan is an accessible launchpad that enables entrepreneurs to scale, while ensuring they have the time and information they need to do what they do best – build amazing businesses,” said Cameron Priest, Co-Founder and CEO of TradeGecko. 

    The Founder Plan allows users to manage their total inventory starting with one eCommerce channel, integrated with accounting, manage sales orders and purchase orders, shipping and email support. It also gives access to TradeGecko Payments, TradeGecko Mobile App and TradeGecko Intelligence sales and inventory reports.

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  • Vietjet not operating any flights with Boeing 737 MAX aircrafts

    Vietjet not operating any flights with Boeing 737 MAX aircrafts

    Vietjet does not operate any flights with Boeing 737 MAX aircraft. We are currently operating with a fleet entirely composed of new Airbus aircraft from the A320 family aircraft. The average age of our fleet is 2.82 years. We are also using latest generation of Airbus aircraft, A320-A321 neo.

    Furthermore, Vietjet’s operations meet the highest international standards with regard to safety and maintenance. In particular, we have complied with all of the regulations and met the latest standards which have been set out by the European Aviation Safety Agency (EASA), the Federal Aviation Administration of the United States (FAA) and the Civil Aviation Authority of Vietnam (CAAV), including the approval of aircraft type for our operation.

    The safety for passengers is always Vietjet’s highest priority. Now we are closely monitoring the Boeing 737 MAX case and our decisions related to these aircraft will be made after the official conclusions and guidelines of the world’s aviation authorities and the CAAV. We are doing this to ensure the development of our modern fleet and to meet the highest quality and safety standards. Vietjet has well managed our fleet so far and our transport business plans are unchanged.

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  • DFS to Celebrate Eighth Prestigious Masters of Wines and Spirits Event in Singapore

    DFS to Celebrate Eighth Prestigious Masters of Wines and Spirits Event in Singapore

    DFS Group (DFS), the world’s leading luxury travel retailer, in partnership with Changi Airport Group, will host its eighth annual Masters of Wines and Spirits event in Singapore at the end of March. The most celebrated and prestigious event in the industry, Masters of Wines and Spirits will showcase a curation of 140 of the rarest and finest whiskies, wines, Cognacs and Champagne from around the world, all under one roof.

    The 2019 edition of Masters of Wines and Spirits will take place on Saturday, 23 March and Sunday, 24 March, bringing together esteemed guests from around the world. The event is an annual testament to DFS’ leadership in global travel retail, as well as highlighting the expertise of DFS’ merchants who spend a year of extensive research to selectively curate a world-class, bespoke collection of wines and spirits.

    Hosted at Infinite Studios, Singapore’s state-of-the-art studio, this year’s edition of Masters of Wines and Spirits explores the theme of “Masters at Work” – an homage to those who have acquired complete knowledge or skill in a subject, technique or artform and whose passionate commitment to their task continues to raise the bar for all others in the field. DFS celebrates six masters across a spectrum of backgrounds. Guests will be taken on an interactive and immersive journey through activations and experiences that explore each brand’s heritage and which ignite the senses.

    The six “Masters at Work” comprise: Brooke Supernaw of DFS as Master of Curation, Ewan Gunn of Diageo as Master of Whisky, Sarah Burgess of The Macallan as Master of Malt, Fabrice Papin of Château Lafite Rothschild as Master of Wine, Hidetsugu Ueno of Bar High Five as Master of Cocktails and DJ Arthur Bray as Master of Music.

    “The eighth edition of Masters of Wines and Spirits will showcase another outstanding collection of more than 140 masterpieces from 60 of the world’s most legendary wine and spirits houses,” said Brooke Supernaw, Senior Vice President Spirits, Wine, Tobacco and Gifts, DFS Group. “Here at DFS, we take pride in curating an ever-growing collection of wines and spirits that become more exclusive, bespoke, rare or limited-edition each year, and which capture the heritage and craftsmanship of each brand.”

    The 140-piece strong curation – featuring collectable items such as the oldest whisky ever released by The Macallan, The Macallan 72 Year Old in Lalique – The Genesis Decanter; a set of three extremely rare vintages, The Château Lafite Rothschild Double Magnum Collection; and an exceptionally unique bottle produced from the owner’s original stocks – Port Ellen’s 39 Year Old. The collection will also be showcased and celebrated at Changi Airport through a series of activations at Terminals 2 and 3 until the end of April.

    DFS’ Masters of Wines and Spirits 2019 Collection

    More than 80 Cognacs and Whiskies make up this year’s collection and include The Dalmore Constellation Vintage 1973 Drinking Cabinet, a very special bespoke and handcrafted cabinet commissioned by Richard Paterson, containing The Constellation Vintage 1973 (cask no.10). The Bunnahabhain 39-Year-Old Spanish Octave Finish, an exclusive limited edition piece that forms part of the new Bunnahabhain Element Series which is crafted around the importance of various elements impacting on the character of each Bunnahabhain whisky, and the DFS Exclusive, Caol Ila 35 Year Old boasting a fine freshness, cleanliness and precision for its age.

    The Glenfiddich 45-Year-Old, an exclusive blend for DFS Masters of Wines and Spirits, honors a whisky-making tradition dating back to 1887 and is a true reflection of the passion and innovative spirit passed down through all five generations of the Grant family. Possibly the last ever cask of Karuizawa Single Malt to be bottled in Japan is the Karuizawa Single Cask 1995. Port Ellen 39-Year-Old is an elegant complex 39 year old Single Malt Whisky, unlocked from the heart of Port Ellen and expertly married from a selection of ex-Bourbon and ex-Sherry refill casks.

    Macallan presents The Macallan 72-Year-Old In Lalique – The Genesis Decanter, the oldest whisky ever released by the Macallan family in commemoration of the opening of its new Distillery and Visitor Experience. Presented in a bespoke limited-edition crystal decanter handcrafted by Lalique, this exceptional whisky celebrates the collaboration of masters from across the fields of whisky, crystal, architecture, construction and craftsmanship. Also from the Macallan family comes The Macallan Fine & Rare Decades Collection. Created exclusively for DFS, the collection features five Fine & Rare vintages from 1938, 1947, 1954, 1965, 1976, each drawn from a single unique cask, denoting key historical events for the year.

    From the world of wine, DFS presents more than 60 collections including The Château Lafite Rothschild Double Magnum Collection, a rare opportunity to collect three of the great vintages produced by the estate in big formats and The Château Mouton Rothschild Magnum Collection, a unique six-vintage magnum set of exceptional vintages from 1988 to 2009.

    The Penfolds 2015 Bin 707 Cabernet Sauvignon Imperial is one of the world’s most iconic Cabernet Sauvignons and a true representation of the Penfolds ‘House Style’ and has shown its ability to age with grace and finesse since the first vintage in 1964. All great wines begin with a great site, and the Continuum Tim Mondavi Library Vertical Selection is a unique collection offering an opportunity to enjoy a vertical flight of Continuum vintages from 2010 through 2015.

    Giving reason to celebrate is the Rare Le Secret Magnum Vintage 1997 With Emerald, Ruby, Sapphire from Piper-Heidsieck. Inspired by the muse of both Maisons, Marie- Antoinette, Queen of France, Rare Le Secret High Jewellery is royally embellished with a one- carat precious stone, interwoven golden bands set with 510 diamonds. Presented in a majestic box, this spectacular edition has been for more than 20 years in the cellar of Régis Camus, Rare  Champagne’s Cellar Master.

    DFS Masters of Wines and Spirits is part of the DFS Masters Series, a signature program of exhibitions around the world. The Masters Series is a showcase of the pinnacle of DFS’ leadership and innovation in curating and creating exceptional experiences across its five pillars of luxury: Wines and Spirits, Beauty and Fragrances, Watches and Jewelry, Fashion and Accessories, and Food and Gifts.

  • Countdown shares impact of family violence

    Countdown shares impact of family violence

    Countdown was one of the first companies in New Zealand to adopt a family violence leave policy across its business, and it is encouraging other retailers to do the same by the sharing the positive impact its policy has had for employees since it was implemented in November 2016.

    Last week, Kiri Hannifin, the supermarket’s general manager of corporate affairs, safety and sustainability, revealed that Countdown has actively supported 28 team members impacted by family violence and provided more than 100 days of paid leave to team members through the policy. Eighty-six per cent of those seeking support have been female.

    Hannifin was speaking alongside the Minister for Workplace Relations and Safety, Hon Iain Lees-Galloway, Under-Secretary Jan Logie and representatives from Shine and the Human Rights Commission at Countdown’s Cable Car Lane store on Thursday last week, ahead of the government’s Domestic Violence – Victims’ Protection Act, which is coming into effect on April 1.

    “Countdown recognises what a significant issue family violence is and as a large employer we wanted to do something meaningful to support our team and show leadership on a really important issue,” Hannifin said.

    “We are committed to providing a safe and supportive workplace at Countdown, and we care about our team and their families – so implementing this policy was just the right thing to do.”

    The range of support Countdown has provided to date also includes free counselling sessions, including on-site; variations to hours; relocation; longer-term leave and facilitating where to seek extra support.

    The policy has also opened up the conversation about family violence across the business, according to Hannifin.

    “Through training, [we have] given our people skills on how to approach and talk to team members who are impacted by family violence,” she said.

    “The more openly our country’s leaders and businesses talk about family violence, the easier we make it for people to ask for our help.

    “That’s why the new Act is so important, not just because of the additional support it gives New Zealanders but because it sends a real signal to all of us that we each have a role to play.”

    Hannifin added that Countdown is very willing to share its knowledge and learnings from the implementing the policy over the last few years, and she encouraged other businesses to think strongly about what they can do to support their team who might be impacted by family violence.

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  • Franchising report reveals “cultural problems”

    Franchising report reveals “cultural problems”

    The Australian Senate thinks there needs to be a comprehensive shift in power in the franchising sector.

    In a long-awaited report on its inquiry into the sector, released today, the Senate said the current regulatory environment has failed to deter poor conduct and exploitation within the sector and created an imbalance in power.

    On that basis, it recommends giving greater protection to franchisees and whistleblowers and applying greater penalties for misconduct. This would involve making several changes to the Franchising and Oil Codes and giving more responsibility and enforcement powers to the ACCC to conduct investigations into misconduct in the sector.

    “There are deeply rooted cultural problems that will not be resolved by a franchisor replacing a few senior executives,” the report stated.

    The report points out that disclosure has been the principal and almost only protection for franchisees, and that while many franchisors would like to keep it that way, it is no longer sufficient.

    “The extent and breadth of misconduct within the franchise sector demonstrates that disclosures and transparency alone, while vitally important, are an insufficient response to power and information asymmetry,” the report said.

    The report recommends more protection for franchisees and employees who want to blow the whistle on franchisors engaging in misconduct, and suggests that whistleblower protections should apply in these cases. The inquiry uncovered many instances of franchisors using intimidation to keep franchisees from speaking out.

    The report also recommends steeper civil penalties be introduced into the Competition and Consumer Act 2010, and the Franchising Code of Conduct, in order to ensure they act as a “meaningful deterrent” against further misconduct.

    The penalty amounts would be similar to those currently found under Australian Consumer Law, and should be prescribed in legislation so that the limit on penalties under industry codes does not apply to franchising.

    One of the major issues in the sector presented in the report is wage theft, partly due to the business model franchisors operate under, and partly due to social and cultural problems within the industry.

    “At times, wage theft is occurring as a way for franchisees to extract profits or service payments in order to stay afloat in a financially constrained business model (given wages are one of the greatest costs in the franchisee’s control),” the report said.

    “Whilst many franchisors cited greed as the primary motivation for wage theft, the committee notes that the issue is far more complex and partly inherent to the business models’ structural breakdown of power and the imposition of cost controls.”

    Last week, the Migrant Workers Taskforce recommended criminal penalties be put in place for businesses which intentionally conduct staff underpayment, noting it had found “widespread levels of non-compliance with relevant laws.”

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  • API doubts Sigma plans

    API doubts Sigma plans

    The proposed merger between the owners of the Priceline and Amcal pharmacy chains is off after Sigma Healthcare rebuffed an approach by its rival.

    Amcal owner Sigma, which is restructuring after losing a contract to supply Chemist Warehouse, said on Wednesday that October’s cash-and-scrip approach by Australian Pharmaceuticals Industries had undervalued its long-term prospects.

    Instead of responding with an increased offer, API questioned Sigma’s plans and said it would now decide what to do with the 12.85 per cent stake it bought late last year.

    “The Sigma Board has chose a path to restructure its significantly downsized business, rather than pursue a merger to create a future that benefits consumers, pharmacists and both sets of shareholders,” API said.

    Sigma said it agreed the tie-up could save the combined company $60 million a year through supply chain consolidation, but that a business review completed last month found $100 million in potential savings through cost-cutting as a stand-alone company.

    It also said that a decline in API’s share price also meant the offer was worth 12 per cent less than when it was made in October.

    The offer was worth about $727 million when it was made public in December.

    API countered by saying the cost savings that Sigma was citing were uncertain and unclear, and would mostly be offset by revenue lost by Chemist Warehouse’s decision to take its business elsewhere.

    It also pointed out its offer represented a 41.8 per cent premium to the average price of Sigma shares in the month before the offer was announced.

    “API notes that very little information has been provided by Sigma in relation to its intended restructure,” API said.

    Sigma shares slumped on the development, dropping 14 per cent to 52.5 cents by 1423 AEDT, their lowest since before the merger proposal was made public.

    API shares were down 3.57 per cent, at $1.35.

    Sigma is the owner of franchise brands Amcal, Chemist King, Discount Drugs and Guardian.

    API owns the Priceline, Soul Pattinson and Pharmacist Advice brands.

  • Iuiga defends use of Muji brand on its website

    Iuiga defends use of Muji brand on its website

    Singaporean retailer Iuiga says it has done “nothing wrong” using the Muji brand name on its website.

    “The information on our website is factually accurate and our manufacturing processes are legal,” said Jaslyn Chan, Iuiga chief growth officer.

    Iuiga says it works directly with Original Design Manufacturers (ODM), who produce for large international brands including Muji. Under the ODM business model, the exterior, aesthetics, materials, dimensions and patented technologies are developed by the ODM and these product and design rights belong to them.

    “There is no direct ownership of the product by any single brand entity, allowing the ODM to produce for more than one brand. This is what Iuiga means when it says a certain product is from the “same manufacturer as Brand A”.

    Based on this, Iuiga maintains it is working with ODMs that also work with Muji.

    “Iuiga is also preparing a list of manufacturers that both Iuiga and Muji work with to be released to the media later,” Chan added.

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