Soggy November sales figures have increased the scrutiny on Christmas trade for Australia’s struggling retail sector as lagging consumer confidence weighs on spending. Official retail sales released on Friday for November came in softer than expected, inching up just 0.1 per cent over the month, but retailers hope that Christmas and Boxing Day sales will have boosted December numbers.
Category: General
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Fast Retailing Japan reports double-digit growth
In the first fiscal quarter ended 30 November,, the Japanese clothing giant Fast Retailing has totaled revenues of JPY479.5 billion yen (USD4 billion) , an increase of 23 percent over the same period before . For the full year , the management estimates that sales will reach the level of JPY1.6 trillion yen (USD13.5 billion) , an increase of 15.7 percent. In quarter operating profits of the Japanese group were up 39.9 percent to JPY91.3 billion (USD770.7 million) and earnings reached JPY68.8 billion (USD580.8 million) ( + 63.9 percent) .
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Tesco’s opening salvo in 2015: Price cuts
UK supermarket giant Tesco PLC has announced “difficult changes” to its business at the start of the year, including the closure of 43 stores, lower prices on the country’s favourite brands, flat investment in payroll, and significant revision to its store building program and reduced capital expenditure budget.
“I am very conscious that the consequences of these changes are significant for all stakeholders in our business but we are facing the reality of the situation. Our recent performance gives us confidence that when we pull together and put the customer first we can deliver the right results,” said Tesco Chief Dave Lewis.
This came at the heels of group sales for the 19 weeks to 3 January 2015 declining by 0.6 percent at constant rates, including fuel and by 1.9 percent, including fuel.
In Asia, total sales for the 19 week period declined by 1.5 percent at constant rates, with like-for-like sales declining by 4.6 percent.
It said market conditions across the region remain challenging. In Thailand, sales trends improved over the period as we annualized the impact of the external pressures linked to political disruption last year. In Korea, a higher number of enforced Sunday closures under the DIDA opening regulations affected the performance of all large retailers.
Speaking to Jody Hodges, Group Project Planning Director at Tesco, in a video interview, Lewis said there are three priorities now: recovering the competitiveness in the core UK business, protecting and strengthening the balance sheet, rebuilding the trust and the transparency in the brand and the business.
On 8 January, Tesco cut prices on hundreds of branded products in response to demands from customers for simpler, lower and more stable prices.
“We know that brands are important to our customers: they’re the products families don’t want to do without. So from today, customers will be able to buy many of their favourite products cheaper at Tesco – from Tetley Tea to Colgate Triple Action Toothpaste, Hovis White Bread to Kellogg’s Cornflakes,” said Tesco’s Chief Customer Officer, Jill Easterbrook in a statement.
She added that overall, the company is cutting the prices of around 380 branded products by an average of 25 percent.
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UPS partners with 7-Eleven in Singapore for delivery
Driven by the growth of e-commerce and online, cross-border transactions, UPS and 7-Eleven have entered into an exclusive partnership in Singapore for an innovative delivery system.
The agreement will see 20 7-Eleven outlets at Shell petrol stations across Singapore serve as Alternative Delivery Locations (ADL) for UPS packages.
“The online shopping market in Singapore is projected to reach SGD4.4 billion (USD) by 2015, and our customers have raised concerns about not being available to sign off on their purchases when they arrive,” said Ingrid Sidiadinoto, Managing Director, UPS Singapore.
The new solution offers customers the flexibility of collecting packages coming from selected online retailers, at the closest participating Shell ADL, if they are not available when UPS makes the first delivery attempt.
She said the new arrangement is expected to help raise the bar on customer service by giving customers greater control over their e-commerce shipments. With 7-Eleven operating 24 hours a day, 7 days a week, the 20 strategically-located outlets participating in the initiative would allow customers to retrieve their packages from a secure and staffed location at their convenience.
In addition to the 7-Eleven partnership, Shell will also be fueling UPS’s 100-strong Singapore delivery fleet with Shell Diesel and Shell FuelSave, which help UPS to reduce harmful emissions and its carbon footprint in Singapore.
“We look forward to welcoming UPS customers to our 20 ADL stations at any time of the day, and assisting them in retrieving their online purchases,” said Leong Chee Hoe, Regional Key Account Manager East for Commercial Fleet, Shell Singapore.
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Tmall global sales increase 10 times in 10 months
China’s largest e-commerce group Alibaba said on Monday transaction size at its overseas shopping division Tmall International added more than 10 times since its initial launch in February this year.
By the end of November this year, as many as 5,400 overseas brands from 25 countries and regions have opened official marketplace at Tmall. Among them, 30 Tmall stores have recorded transaction of more than CNY10 million (USD1.6 million).
Foreign retailers such as Metro AG are also planning to open their official stores on Tmall early next year.
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Zalora offers same-day delivery in 5 ASEAN nations
Zalora, Asia’s online fashion destination, on Thursday announced its new same-day delivery service, making it the only regional online fashion retailer to offer such a facility.
Its regional managing director Michele Ferrario said in a statement that customers can choose the same-day delivery option at checkout on selected items for a nominal fee.
“With the new service, we are further committing ourselves to customers who lead busy lives. It also comes with other customer-centric services such as free shipping for orders over a certain amount, self-collection and cash on delivery.”
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Matahari department store opens its 130th store in Jakarta’s Cyberpark
Matahari Department Store opened its 130th outlet in Cyberpark, North Lippo Karawaci, last week to tap growing demand of consumers in the Tangerang region, the retailer said in a statement.
Matahari currently operates in 62 cities across the archipelago and the Cyberpark outlet would be its sixth in Tangerang.
“With a shopping area of almost 5,000 square metres, we strive to provide consumers with a fun and unique experience while shopping,” the statement read.
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Operators call for lower e-commerce taxes in Thailand
Thai e-commerce operators are urging the government to impose lower rates of taxation in order to encourage them to enter the revenue system and pay proper taxes.
Offering lower rates to small and medium-sized enterprises could also encourage them to go online and promote the development of the digital economy, says Somwang Luangphaiboonsri, secretary of the Thai e-Commerce Association.
E-commerce in Thailand is burgeoning and the government’s policy to move towards a digital economy is expected to paint a rosy picture for the sector, he said.
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Christmas shopping: Consumer anxiety falls in time for retail season
Consumers in Australia are less anxious than at any time in the past 18 months amid signs of a robust finale to the Christmas shopping season.
The National Australia Bank’s consumer anxiety index, released on Tuesday, has fallen for a second straight quarter to its lowest mark since mid-2013. It also revealed households have increased spending on non-essentials.
New spending data pointed to solid retail spending growth in December, despite the hit to consumer confidence caused by last week’s siege in Martin Place. Commonwealth Bank figures, released on Tuesday, show the volume of debit and credit card transactions made in stores across Australia in the first three weeks of December was 10.7 percent higher than the same period last year. The total value of transactions was five per cent higher in that period.
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Coles fined USD8m for misconduct
Australian supermarket giant Coles has been ordered to pay AUD10 million (USD8.1m) in penalties for “serious, deliberate and repeated” misconduct towards suppliers that were in some cases in financial trouble.
The Federal Court ruled in favour of a settlement between the retailer and the consumer watchdog, agreed by the parties last week.
Justice Michelle Gordon said the behaviour by Coles was orchestrated and relentless and involved threatening harm to suppliers by unlawfully withholding funds or demanding payments.
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Woolworths’ Christmas threat to suppliers
Woolworths buyers have told suppliers their products could be pulled from shelves just days before Christmas if they refuse to fund the supermarket giant’s new Cheap Cheap advertising campaign.
“I was asked for a contribution of almost $1 million, and when I refused to pay I was told a ‘range review’ was under way and I would be informed of the outcome early next week,” said the sales manager of one of Australia’s leading health product companies. “The implied threat is that some of my products will no longer be stocked if I don’t pay up.”
Woolworths staff have also been accused of telling suppliers the payment requests had the “endorsement” of the Australian Consumer and Competition Commission – a claim that the consumer watchdog rejects.