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.

  • Tesco China drags down partner

    Tesco China drags down partner

    Tesco China has been blamed for dragging China Resources Enterprise into the red.

    CRE, which operates the Vanguard hypermarket chain in China, has reported its first annual loss in more than 20 years and blames the start-up costs for its venture with embattled Tesco for the red ink.

    CRE has effectively taken control of Tesco China when the latter effectively admitted defeat in Asia’s largest grocery market, unable to penetrate the domination of local brands and store networks.

    Now CRE has warned that it may take three to five years to turn the ailing Tesco business around.

    “Looking ahead, the group’s top priority in 2015 is to improve operational efficiency and reduce losses,” chairman Chen Lang said a statement.

    He warned profitability would remain volatile, with increased competition from eCommerce businesses and the Chinese government’s crackdown on gift-giving and graft affecting sales.

    CRE reported a net loss of HK$161 million (US$20.75 million) in 2014 – a massive turnaround from the HK$1.91 billion ($246.3 million) profit of 2013.

    Revenue from the 3000 supermarkets and hypermarkets CRE runs, rose 15.3 per cent to

    HK$168.86 billion ($21.8 billion).

    The Chinese retailer will be hoping its eCommerce venture, to be launched later this year, will help restore profitability, along with a change in focus of its store development program to smaller new stores, speciality stores and convenience stores rather than hypermarkets.

  • Kathmandu slows down Aussie expansion

    Kathmandu slows down Aussie expansion

    Outdoor clothing retailer Kathmandu is putting the brakes on its store expansion in Australia after racking up a first half loss.

    Disappointing sales at Christmas and in January as well as heavy discounting on excess winter stock were blamed by the retailer for pushing it into the red with a NZD1.8 million (USD1.4m) loss.

    The gloom looks likely to continue, with sales during the seven weeks to mid-March down 2 percent on a year ago.

  • Lukfook debuts in Korea

    Hong Kong jeweller Luk Fook has opened its first store in Korea.

    The store is within the Walkerhill Duty Free complex in the downtown Seoul suburb of Gwangjin‐gu and targets tourists.

    Wong Wai Sheung, Lufook Group chairman and CEO, said the group will continue to provide quality jewellery products and professional services for Korean and global customers.

    “Adhering to our corporate vision of ‘Brand of Hong Kong, Sparkling the World’, the group has been expanding overseas markets to explore business opportunities. Currently, the group has over 1390 shops in Hong Kong, Macau, mainland China, Singapore, the US, Canada and Australia.

    “Following the opening of our first retail outlet in Korea, our retail network now covers eight countries and regions, which will broaden the customer base and further build the brand in the international market.”

    According to data from the Korea Tourism Organization, the number of Chinese tourists visiting Korea reached approximately 5.7 million by the end of November last year, accounting for more than 43 per cent of the total number of travellers visiting Korea, and double the number of five years ago.

    Eyeing the strong purchasing power of Chinese tourists, the group plans to open another outlet in Korea to capture the market potential.

  • Charlotte Olympia Thailand launches

    Charlotte Olympia Thailand launches

    Exclusive UK footwear designer Charlotte Olympia has opened her first store in Thailand, the second Asia market in its steadily growing international footprint. Charlotte Olympia plans to open four boutiques this year, the others in Las Vegas, South Coast Plaza in southern California and a second in London.

    “I’m so excited to be opening four new Charlotte Olympia stores this year. Our expanding global retail footprint marks a significant milestone in the development and growth of the brand,” said Charlotte Olympia Dellal, CEO and creative director, in a statement.

    “I’m delighted to be able to showcase my collections in environments which distinguish our offering.”

    Charlotte Olympia Bangkok 315

    The Bangkok store is on the ground floor of the Emporium shopping centre on Bangkok’s Sukhumvit Rd.

    The distinctive stores feature a design inspired by Hollywood glamour: leopard print seating, brass panelling and mirrored walls.

    Charlotte Olympia launched her first footwear collection at London Fashion Week in February 2008 and her first boutique store followed on Maddox St, London, two years later. New York followed in 2011 and Rodeo Drive, Beverly Hills in 2013. Last year she opened three stores – in Hong Kong, Miami and Dubai.

  • Rainbow stores continues expansion

    Rainbow stores continues expansion

    Shenzhen-headquartered Rainbow Department Stores is continuing to expand despite falling profit in 2014.

    According to stock exchange filings, Rainbow increased sales last year by 6.02 per cent to RMB 16.998 billion (US$2.7 billion). But its profit fell 11.84 per cent year-on-year to RMB 773 million ($124.5 million).

    Rainbow stores opened 12 new shops under its own brand and one new Dreams-on store, added five new Weiwo convenience stores and acquired a chain of 153 Q-mart c-stores.

    The company now has 62 Rainbow-branded stores and one franchised store with a combined trading area of more than 1.8 million sqm. Its Dreams-on owned chain now stands at four.

    At year end, Rainbow had expanded into Guangdong, Jiangxi, Hunan, Fujian, Jiangsu, Zhejiang, Beijing, and Sichuan.

    The company says in 2015 it will transform and restructure its internal business model to boost profitability.

    The company will focus on developing a mobile eCommerce channel and improve its supply chain capacity.

  • Thai beauty market booms

    Thai beauty market booms

    The Thai beauty industry is growing rapidly, fuelled by increasingly sophisticated consumers, including men.

    Sales in the lucrative luxury segment soared 24 per cent last year, aided by reductions in duty tariffs seen as a government initiative to attract more foreign shoppers.

    With 70 million potential consumers, there are many opportunities for international and domestic companies in what the organisers of ASEANbeauty 2015 trade show next month describe as “a vibrant market, which values new and innovative products”.

    ASEANbeauty 2015 expects to attract over 200 exhibiting brands from different countries and regions including Taiwan, mainland China, India, Japan, South Korea, Malaysia, Hong Kong, Singapore, the Philippines and Thailand, who will join a host of global businesses focusing on the Asia region. Many of these brands will take the opportunity to launch new products and innovations during the event.

    Held at the Bangkok International Trade & Exhibition Centre (BITEC) in Bangkok, Thailand, ASEANbeauty 2015 will run from April 8 to 10.

    On the afternoon of April 8, a panel discussion Thailand is Ready for The ASEAN Beauty Market, with invited speakers from association and government bodies will share thoughts on how Thailand is ready for the ASEAN beauty market and how the upcoming ASEAN Economic Community will impact the ASEAN beauty industry as a whole.

    Consumers and Marketing Focus for The Cosmetics Industry in 2015 will enable industry players to stay ahead with the latest trends, with brand new market data, case studies and insights.

  • Yelp lands in Taiwan

    Yelp lands in Taiwan

    Business rating app Yelp has opened a portal in Taiwan.

    Yelp allows shoppers and customers of other businesses to share their opinions and experiences in a similar way TripAdvisor allows crowd ratings of restaurants, hotels and holiday destinations.

    From this week, people throughout Taiwan can create accounts on Yelp.com.tw  and use the free iPhone and Android applications as well as its free suite of business owner tools: Yelp for Business Owners.

    “From shopping at street markets for sweet and savory snacks, to getting lost on the many hiking trails, Taiwan is an energetic tropical island full of surprises,” says Miriam Warren, VP of new markets. “Similar to Yelp’s home in Silicon Valley, a bevy of influential technology firms make their home in Taiwan. It’s definitely a natural fit.”

    Yelp is already in Singapore, Hong Kong and Japan and The Taiwan debut continues an Asia growth ambition. The company will initially appoint a community manager in Taipei, whose role will be to build a local community of Yelpers in Taipei.

    Yelp is available to everyone in Taiwan with access to the Internet, whether that be via their desktop, smartphone or tablet, and they can do so in any one of the 16 languages that Yelp currently supports, including traditional Chinese.

  • Retailers close for founder’s funeral

    Retailers close for founder’s funeral

    Department stores Metro and Tangs will close their Singapore outlets all day on Sunday, when the state funeral for the nation’s founder and former prime minister Lee Kuan Yew will be held.

    Retailers Mothercare Accessorize, Island Shop boutiques, Cache Cache and King Kow are among others to announce their closure.

    All Singapore Pools (betting) retail outlets will close all day.

    The closures were announced as a gesture of respect to the much admired former leader.

    The Straits Times newspaper quoted Metro’s advertising and promotions manager Veronica Lee saying: “We felt that we should do so as a mark of respect. Staff will also get a day off to show thanks and reflect.”

    Normal operations will resume on Monday.

    Earth Hour activities planned for City Square Mall on Saturday by City Developments were cancelled.

    The newspaper reports that three retailers in The Shoppes at Marina Bay Sands have postponed events, including Cath Kidston’s island-wide marketing campaign and the official store opening event of Kate Spade New York. Other sale promotions have been suspended.

  • Dairy Farm boosts Macau reach

    Dairy Farm boosts Macau reach

    Hong Kong’s Dairy Farm International has acquired the Macau-based supermarket operator, San Miu Supermarket.

    The purchase price was not disclosed.

    San Miu operates 15 mass-market supermarkets with an average gross store size of approximately 9500 sqft.

    In a statement, Dairy Farm said the purchase of San Miu reinforces Dairy Farm’s retail presence in Macau, and complements its well-established convenience store and health and beauty businesses in the territory.

    Dairy Farm Group, together with its associates and joint ventures, operates more than 6100 outlets – including supermarkets, hypermarkets, convenience stores, health and beauty stores, home furnishings stores and restaurants – employing over 100,000 people. It posted total annual sales in 2014 exceeding US$13 billion. It is a member of the Jardine Matheson Group.

     

  • Malaysia retail sales slip

    Malaysia retail sales slip

    Retail sales in Malaysia fell by nearly one per cent in the last quarter of 2014 as consumers cut back spending, spooked by the looming introduction of GST.

    On April 1, Malaysia’s government introduces a goods and services tax on most items, excluding food, of six per cent.

    Sales in the fourth quarter fell 0.8 per cent year-on-year – the worst quarterly performance on record, and below predictions by the Malaysia Retailers Association (MRA).

    The poor fourth quarter lowered the full year figure to 3.4 per cent growth, compared with 4.5 per cent growth in the previous year.

    Retail Group Malaysia (RGM), in a report released this week titled Malaysia Retail Industry Report, said Christmas, lower fuel prices and the year-end sale season all failed to lift sales.

    “Furthermore, the (impending) implementation of the goods and services tax (GST) next month did not stimulate consumption during the last quarter (of 2014). Retailers used heavy discounts to encourage consumers to shop, but failed to generate higher sales. During the quarter, many retailers suffered declines in profit margin growth,” the report said.

    Department store sales fell 5.7 per cent last quarter, while hypermarket sales rose just one per cent. Fashion and accessory sales fell 2.2 per cent.

    Miscellaneous retailing – including optical products, second-hand goods, health and fitness equipment, toys, souvenirs, duty-free goods, arts and crafts, photographic equipment – and foodservice, believe it or not – performed the worst, with sales contracting 6.7 per cent.

    RGM is concerned consumers do not understand the potential impact – or lack thereof – on retail prices post-April 1.

    “Retail sales performance during the first two months of this year was below expectation as consumers were confused by different public messages on the prices of retail goods and services after March 2015,” it said.

    Possible rushed purchases – to avoid paying six per cent on big ticket items – may power sales growth in the first quarter of 2015. In the survey, MRA members said they were hopeful of a recovery, RGM estimating growth of 5.8 per cent.

    But RGM has lowered its 2015 full year prediction from 5.5 per cent growth to 4.9 per cent growth.

    “Malaysian consumers will get used to GST by the last quarter of 2015. Retail spending will return to normal again by this period. Retail is expected to recover strongly with a 6.9 per cent growth rate,” it said.

     

  • Chow Tai Fook to partner in Vietnam casino

    Chow Tai Fook to partner in Vietnam casino

    Hong Kong based retail jeweller Chow Tai Fook is to partner in a US$4 billion casino project in Vietnam.

    Chow Tai Fook Enterprises, an affiliate of Chow Tai Fook Jewellery Group, the world’s largest jewellery retailer by market value, has already committed to investing in casino resorts in Brisbane, in the state of Queensland, Australia, and in South Korea.

    Now it will partner with Vietnamese investment group VinaCapital and Suncity, a Macau-based casino tour operator.

    Strict regulations in Vietnam prevent locals from gambling inside the country, however the government allows developments to serve tourists or those locals who hold a foreign passport. New casino licences will only be issued to developments with an investment value in excess of $4 billion, which deters minor players.

    Other international gambling businesses, like Sheldon Adelson’s Sands Group have gone as far as creating plans for integrated resorts featuring casinos, but have stopped short of commencing construction until the government loosens restrictions on locals playing.

    Reuters reports the new resort will be located in Quang Nam in the central part of Vietnam

    The news agency said Chow Tai Fook’s involvement was confirmed by VinaCapital after the jeweller issued no comment beyond confirming “preliminary studies”.

    Chow Tai Fook has reportedly replaced Malaysian casino operator Genting which withdrew from the project in 2012 due to the local gambling restrictions.

    Reuters said the government was “mulling” a change in the legislation but has not released a policy as yet.

  • Lawson Philippines debuts today

    Lawson Philippines debuts today

    The much anticipated debut of Lawson Philippines will occur today, Monday.

    The first store will open in the Manila suburb of Sta. Ana.

    Lawson Philippines is a joint venture between local operator Puregold Price Club (70 per cent) and Lawson Japan (30 per cent). The two companies plan a massive network of 500 convenience stores across the Philippines by 2020, with up to 100 opening this calendar year.

    Initially the chain will be focused on metro Manila.

    Lawson’s debut will have little immediate effect on the nation’s cstore sector, but once it builds critical mass, it will present a challenge to the dominance 7-Eleven chain and compete with the rising FamilyMart and Ministop networks.

    “Under the partnership, Lawson will provide its expertise in convenient stores know-how and product development while Puregold will provide its expertise in product procurement and localized knowledge of the retail consumers,” the company said in a statement.

    In May 2014, during a visit to Manila, Lawson Japan chairman Takeshi Niinami said the company was planning as many as 2000 convenience stores in the Philippines in the long term.

  • Gome plans 100,000 ‘micro stores’

    Gome plans 100,000 ‘micro stores’

    Chinese electrical retailing giant Gome plans to open 100,000 ‘micro stores’ in 2015 in a move it says will help it build a retail community of more than 100 million customers.

    The bold vision is part of a new strategic multi channel plan Gome is embarking on this year to bridge the gap between online and offline sales and embrace fast growing channels like mobile shopping.

    “With the onset of the mobile Internet era, the development of consumer behavior is trending towards a focus on the individual, with fragmented consumption time, diversified shopping setting, and less distinction between channels,” the company said in an explanation of its strategy.

    “With the change in consumption behavior and demand, Gome is destined to upgrade the “omni-channel experience” in both online and offline to “total retail experience” emerging from the integrated online and offline channels, allowing consumers to move freely between online, offline, mobile terminals and joint- operating channels. The group will focus on the development of Mobile Micro Shops on the front-end interface platform, connecting online and offline. Meanwhile, the group will enhance the value of the supply chain with a focus on the back-end big data infrastructure to build a total retail community with more than 100 million customers.”

    By having so many effective points of sale spread across China, all linked online and all supported by a boosted supply chain system to ensure rapid supply of goods, Gome believes it can increase its share of the appliance and electronics market and engage with more customers.

    “Through Gome’s total retail shopping process, consumers from different entrances will enjoy more product choices than ever, diversified services including shopping assistance, queries, payment, installation, after-sales, reviews and feedback, etc. Meanwhile, the group will also conduct targeted marketing and promote repeat purchases by transferring real-time customer behavior data to the front-end in a timely manner using the big data terminal.”

    Gome says loyal fans of the brand are the consumers with the most potential. The company will leverage social media like WeChat and Weibo, to “share products, achieving cross-category, cross-brand and round-the-clock sales,” creating what it promises will be “a superb consumer experience” tailored to each individual.

    Along with the 100,000 mobile micro shops, Gome plans to double its social media ‘fan base’ by 2017.

    In-store, the changes are just as dramatic. Gome says by expediting the digitisation of its physical stores; increasing product variety, introducing a sophisticated product experience and new technology, the group will allow consumers to make purchases while shopping “and playing”.

    The company will also expand its physical store network into second tier markets, targeting 100 new cities over the next three years with full size stores as well as its micro store network, and it will boost the resources of its eCommerce portal Gome Online to boost reach and sales.

    By collecting data from all transactions and analysing it in the clouds, the company expects to be able to conduct increasingly targeted marketing.

    “Furthermore, the group will leverage the data to boost collaboration between value platforms including procurement, logistics, after-sales, financial services and information.”

    All this will be backed up by a sophisticated logistics network.

    “Gome is committed to building China’s biggest socialised logistics network platform for home appliances. With its strong infrastructure and supporting resources and 1688 chain stores nationwide (including the stores under the non-listed Gome group), Gome will continue to establish the highest service standard of “three deliveries/day, precise delivery, installation on delivery”.”

    After-sales service will also receive a boost: Gome is already China’s largest air-conditioner and television installation service provider. By offering the whole after-sales service process within the product validity period including installation, extended warranty, maintenance and home appliances recycling, and the promise of “Deal with the problem within 24-hours”, Gome aims to become China’s largest platform for home appliances after-sales services by 2017.

    Gome CEO Wang Junzhou said In 2015 the company will strive to build a “Gome ecosystem” covering consumer groups of all ages, channels and markets.

    “This will support the group build China’s best total retail platform and achieve the target of “building another Gome” by 2017, thus creating greater value for shareholders, suppliers and consumers.”

  • Facebook buys shopping search engine TheFind

    Facebook buys shopping search engine TheFind

    Facebook yesterday waded further into e-commerce with the acquisition of shopping search engine TheFind.com.

    “For the last nine years we’ve worked hard to bring you a shopping experience that’s easy, efficient and fun – searching all the stores on the web to find just the right products you’re looking to buy,” TheFind said in a message at its website.

    “We are now starting our next chapter by combining forces with Facebook to do even more for consumers.”

    Terms of the deal were not disclosed.

    Members of TheFind team are joining Facebook, where they plan to put their technology to work making ads at the leading social network “more relevant,” according to the post.

    The acquisition will result in TheFind.com shutting down in the next few weeks.

    Facebook has been playing catch-up regarding searching for information at the social network and becoming a middleman of sorts for online commerce.

    “Together, we believe we can make the Facebook ads experience even more relevant and better for consumers,” the social network said in statement.

    TheFind – “Everything you need when shopping to quickly decide what to buy and where to buy it” – will shutter the Silicon Valley base it has operated from since launching in 2006 and move team members to Facebook’s campus in Menlo Park, California.

  • IKEA to invest USD95.7m in 3 stores in India’s Maharashtra

    IKEA to invest USD95.7m in 3 stores in India’s Maharashtra

    The Bharatiya Janata Party (BJP)-led government in the Indian state of Maharashtra on Friday signed a memorandum of understanding (MoU) with the Swedish furniture retailing giant, IKEA, to set up two to three stores. Maharashtra is one of four states, including Telangana, Karnataka and Delhi-National Capital Region (NCR), identified by IKEA to open its stores. One store will need more than eight acres (350,000 square feet). The company is on the lookout for locations in these states.

    State Industries Minister Subash Desai told the Business Standard: ”Each store IKEA proposes to start in Maharashtra entails an investment of INR600 crore (INR6 billion, USD95.7 million). Each store will generate jobs for more than 1,000 people. Maharashtra is one of few states in India supportive of foreign direct investment in single-brand retailing.”