Retail News CRM

Category: Real Estate

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

  • Sussan Group CEO Naomi Milgrom says no more bricks and mortar

    Sussan Group CEO Naomi Milgrom says no more bricks and mortar

    Australian retail needs to reinvent the shopping centre, prepare for more of the world’s biggest retailers setting up here, and bridge the gap between bricks and mortar and the “mindblowing” experience of online, says the boss of Australia’s largest privately held specialty fashion retailer.

    Naomi Milgrom is the owner, chair and chief executive of the Sussan Group, which owns the Sportsgirl, Sussan and Suzanne Grae brands, and is one of Australia’s richest women.

    She said Australian retailers needed swift change as the falling dollar lifts import prices, newly arrived international retailers take market share, and amid gloomy predictions about the future of US shopping centres. With more than 500 stores, Milgrom said she didn’t want to open any more.

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  • Marketing boost for Thai malls

    Marketing boost for Thai malls

    Thailand’s Mall Group will invest more than 2 billion baht ($US61 million) this year to stimulate customer spending.

    In an interview with the Bangkok Post newspaper, executive VP Chamnarn Maytaprechakul said the company aims to boost sales to 53 billion baht ($1.6 billion) in 2015.

    The Mall Group owns Siam Paragon, the Emporium complex and The Mall, all in Bangkok. Adjacent to the Emporium, two new malls are under construction – EmQuarter and EmSphere, which will open during the next two years.

    Strong sales at Siam Paragon helped the group achieve a six per cent year-on-year sales growth in January, a figure above its monthly average performance in 2014. Group sales grew two per cent last year and the company is targeting six per cent growth this full year.

    Maytaprechakul said Thai consumers are still taking a cautious approach to spending despite the calmer political climate and improved economic outlook.

    “The retail atmosphere so far is similar to the situation during the heavy floods in late 2011. People are not really in the mood to shop even though they have money in their pockets due to the falling oil price,” he said in the interview.

    CEO Phaibul Kanokvatanawan said Siam Paragon’s sales growth was attributable to a resurgence in tourism to Thailand, with foreigners now more comfortable returning to the nation amidst the relative political calm.

    “We hope consumer purchasing power will improve in the second and third quarters of this year after the government starts allocating money for major infrastructure projects,” he said.

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  • New luxury outlet opens in Shanghai

    New luxury outlet opens in Shanghai

    Italian holding based in Florence, Gruppo Fingen/Rdm, inagurated last week Florentia, a 90.000 sqm mall in Shanghai in the Pudong district. The new mall features brands such as Armani, Bally, Brooks Brothers, Ck Jeans, Etro, Salvatore Ferragamo, It, Moncler, Michael Kors and Versace.

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  • MBK plans lifestyle mall in Thailand’s Mae Sot to cash in on AEC

    MBK plans lifestyle mall in Thailand’s Mae Sot to cash in on AEC

    MBK Plc, the SET-listed operator of MBK shopping centre in Bangkok, is negotiating with local partners to co-develop a lifestyle shopping complex in Tak province to attract Myanmar shoppers.

    The 20,000-square-metre project will be used as a prototype to develop other malls in border towns to cash in on opportunities arising from the ASEAN Economic Community (AEC), which is set to kick off late this year.

    Sakchai Kengkijkosol, managing director for retail operations, said MBK would start constructing the project in the border town of Mae Sot once the government had a clear policy on infrastructure development in response to the AEC.

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  • Second Courts store in Indonesia begins construction

    Second Courts store in Indonesia begins construction

    Courts Asia, the operator of retailer Courts Megastore, began with construction of its second outlet in Indonesia on Thursday, as the company races to tap into the country’s growing middle-income group.

    The three-storey structure will boast 20,400 square metres of retail space in Bumi Serpong Damai, a satellite city located south of Jakarta, said Terence Donald O’Connor, Courts Asia’s executive director and group chief executive.

    That would dwarf Court’s first store in Bekasi, which offers 12,000 square metres of soft retail space and is currently the biggest Courts Megastore in Southeast Asia.

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  • Matahari expands to “Chinatown” of Indonesia’s Kalimantan

    Matahari expands to “Chinatown” of Indonesia’s Kalimantan

    Matahari Department Store (MDS) opened a new store in Indonesia’s Singkawang, West Kalimantan, to tap the economy prospects in the region, the publicly-listed company said in a statement on Thursday.

    The store, called Matahari Singkawang Grand Mall – MDS’s 13th store in Kalimantan – has a total area of 6,300 square metres. The store is the first new location MDS has opened this year.

    “The presence of Matahari at Singkawang Grand Mall is expected to benefit citizens in its surrounding area, hiring 322 employees, the majority of whom are locals,” Matahari human resources director Andre Rumantir said.

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  • CapitaLand China mall sales soar

    CapitaLand China mall sales soar

    CEO of CapitaRetail China Trust Management Limited (CRCT), Tony Tan said the growth was underpinned by the new contribution from CapitaMall Grand Canyon and rental growth from the other multi-tenanted malls.

    “Rental reversion was a robust 20.6 per cent, and portfolio occupancy as at December 31 was a healthy 95.9 per cent. Tenants’ sales and shopper traffic for 2014 increased year-on year by 16.2 per cent and 3.9 per cent respectively.”

    Singapore-based CRCT has 10 income-producing CapitaMall-branded shopping malls in greater China: Xizhimen, Wangjing, Grand Canyon, Shuangjing and Anzhen in Beijing; Qibao in Shanghai; Erqi in Zhengzhou, Henan Province; Saihan in Huhhot, Inner Mongolia; Wuhu in Wuhu, Anhui Province; and Minzhongleyuan in Wuhan, Hubei Province. Total assets are valued at about S$2.4 billion.

    All the malls are positioned as one-stop family-oriented shopping, dining and entertainment destinations for the sizeable population catchment areas in which they are located, and are accessible via major transportation routes or access points. A significant portion of the properties’ tenancies consists of major international and domestic retailers such as Beijing Hualian Group and Carrefour under master leases or long-term leases, which provide unitholders with stable and sustainable returns. Other tenants include KFC, Paris Baguette, Pizza Hut, Sephora, Uniqlo, Vero Moda, Watsons and Zara.

    “For 2014, CapitaMall Xizhimen and CapitaMall Wangjing – our largest revenue contributors – recorded growth of 16.4 per cent and 13.7 per cent in their net property income (NPI) respectively, after a series of tenant mix adjustments,” said Tan.

    “Over at CapitaMall Grand Canyon, new tenants such as Nanjing Impressions opened to strong sales, and plans for further reconfiguration of the mall’s layout to add more retail units are progressing well. CapitaMall Qibao, which achieved 17.5 per cent growth in NPI, strengthened its education and children-related trade offerings on its Level 4 with the introduction of C&S – an enrichment centre which offers baking classes to both adults and children and held well-received thematic marketing activities such as the Shanghai Animation Film Studio Exhibition.

    “The upgrading of the tenant mix at CapitaMall Saihan also showed positive results, with its NPI increasing by 19 per cent in 2014.”

    Tan said CapitaMall Wuhu is also currently undergoing tenant mix adjustments to achieve a stronger positioning and better trade mix.

    “In the short term, CapitaMall Minzhongleyuan’s NPI has been impacted by the road closure for subway construction works, but the mall will stand to benefit from increased shopper traffic when subway Line 6 linking Hankou and Hanyang becomes operational by end-2016. With the financial flexibility provided by our robust balance sheet, we continue to be on the lookout for acquisition opportunities to grow our portfolio further.”

    The trust achieved distributable income of S$20.5 million for the quarter, an increase of 15.6 per cent over the S$17.7 million for the fourth quarter of 2013.

    Chairman Victor Liew said China’s economy expanded by 7.4 per cent in 2014 and retail sales grew 12 per cent to RMB26.2 trillion.

    “The Chinese government has continued to place a strong emphasis on quality and sustainable growth, and we have seen an overall stability in the economy and the labour market in the past year. The country’s efforts at economic restructuring are seeing progress, and the services sector has developed into the largest pillar of China’s economy.

    “Moving forward, with the government’s focus on driving domestic consumption and maintaining long term stability, CRCT remains upbeat about China’s retail growth prospects,” said Liew.

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  • Starhill weathers storm

    Starhill weathers storm

    Starhill Group, the mall-owner REIT, says improving returns from its Singapore property Wisma Atria cushioned the impact of foreign exchange fluctuations and a sluggish retail environment in China and Hong Kong.

    While shopper footfall in Wisma Atria was down 3.1 per cent and combined sales of retail tenants fell 5.6 per cent year-on-year in the fourth quarter to S$139 per sqft, lease renewal rates are running high.

    SHREIT said the figures reflected “headwinds in the retail sector” but asserted that assets strategically located in prime areas will continue to be a draw for international retailers.

    Wisma Atria is in the heart of Singapore’s prime Orchard Rd shopping precinct.

    OCBC reports the REIT’s sales slipped 0.4 per cent year-on-year to S$48.90 due to a weaker contribution from its China and Japan assets. This is turn was partly due to foreign exchange changes.

    New lease rates were on average up 17 per cent on previous revisions, largely due to renewals and new leases for prime street-front units, highly sought after by international retail brands.

    Management says it remains positive regarding rental reversions at Wisma Atria over the next six months.

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  • Michael Kors to open Ginza monster

    Michael Kors to open Ginza monster

    Michael Kors will open its largest Japanese flagship store this fall, on Chuo St in Tokyo’s Ginza district.

    The store will be the first in the world to carry every category offered by the global luxury lifestyle brand.

    “Japan is a key market for our continued development in Asia,” said Michael Kors.

    “This is a very exciting opening. Ginza is one of the world’s great shopping neighborhoods, in one of the greatest fashion cities, so it’s both exciting and appropriate that we’re debuting this very special store in Tokyo.

    “I look forward to welcoming our customers to the new store, and sharing with them the mix of sophistication, glamour and ease that defines everything we design.”

    The store, which measures approximately 7800 sqft, will reflect the new design concept unveiled last year at the Jing’An Kerry Centre in Shanghai, (pictured above), including the shimmering exterior facade inspired by Michael Kors’ signature use of metallics and texture. The facade, designed by Michael Kors’ in-house design team, consists of luminous screens made of unique, light-reflective facets set within a grid of internally lit recesses.

    Michael Kors, the business, describes the effect is elegant and kinetic, “evoking the light-catching allure of a sequined gown”.

    A large-scale video screen will cover the balance of the second- and third-story facade, while the ground floor features large storefront windows framed in Bianco Dolomiti marble.

    The interior of the store will reflect the signature jet set glamour of the Michael Kors brand, with polished stainless steel fixtures, white marble flooring, Macassar wood and zebra-skin accents used to create a luxurious and inviting atmosphere.

    Women’s ready-to-wear will occupy the upper floor, housed in a sophisticated, exclusive environment designed to complement both the Michael Kors Collection and ‘Michael’ Michael Kors labels. Here shoppers can browse, try on clothes and consult with the store’s personal stylists in an ambience of calm and complete indulgence. This floor will also showcase a grand shoe salon.

    On the ground floor, handbags from Michael Kors Collection and ‘Michael’ Michael Kors will be showcased in a variety of dramatic displays, along with curated presentations of accessories, watches, jewelry and eyewear. The lower level will be dedicated to menswear and men’s accessories, making the Ginza flagship the first freestanding Michael Kors store in Japan to offer menswear.

    “Japan is a key market for our continued development in Asia,” said John Idol, chairman and CEO of Michael Kors.

    “The importance of Tokyo to luxury and fashion retailing makes this the right place and time to open our first store showcasing every facet of the Michael Kors brand. We look forward to offering the full breadth of our product assortment, presented with our signature glamour, chic and superlative service, to our Japanese customers and tourists traveling to Tokyo.”

    Michael Kors, established in 1981, produces a range of products through his Michael Kors and ‘Michael’ Michael Kors labels, including accessories, footwear, watches, jewelry, men’s and women’s ready-to-wear, and a full line of fragrance products. Michael Kors stores are operated, either directly or through licensing partners, in global cities including New York, Beverly Hills, Chicago, London, Milan, Paris, Munich, Istanbul, Dubai, Seoul, Tokyo and Hong Kong.

  • Retailers offer cross-border privileges

    Retailers offer cross-border privileges

    Five retail giants have teamed up with a Thai mall operator to offer a cross-border privileges programme for shoppers.

    Siam Piwat, owner of Siam Paragon, Siam Center, Siam Discovery and Paradise Park, is partnering with South Korea’s Lotte, Hong Kong’s Times Square, Robinsons of Singapore, Sapporo Parco of Japan and Galeries Lafayette of France in the Global Privilege Partnership program.

    Together, the retailers will launch a “massive international campaign”, offering both local and international shoppers “ultimate shopping experiences and above average privileges”. The partnership is the first of its kind in Thailand’s retail sector.

    Mayuree Chaipromprasith, Siam Piwat’s senior vice-president for business promotion, said Siam Piwat is honoured to lead the campaign and to be trusted by the five retailers who selected Siam Piwat as their exclusive partner in the customer relationship management (CRM) programme across the borders to ensure cardholders enjoy maximum benefits.

    “Siam Piwat sees working together in the form of partnership and collaboration as a way to develop a mechanism to stimulate more international consumer spending in Thailand. At present, the majority of visitors to Siam Piwat’s shopping venues are of the B group and higher. They have high purchasing power, love to travel, live a modern lifestyle, are into trendy innovations and expect above average services,” said Chaipromprasith.

    She added that Siam Piwat expects 400,000 visitors a year to participate in the programme, which should generate 6 billion Thai baht annually in consumer spending.

    “The Global Privilege Partnership has the largest number of leading countries working together. Not only will it serve to grow traffic to Siam Paragon, Siam Center and Siam Discovery, but it also offers value for money in terms of benefits and privileges enjoyed by members of the Platinum M Card for shoppers at Siam Paragon and VIZ Card for shoppers at Siam Center, Siam Discovery and Paradise Park.”

    The Global Privilege Partnership programme offers premium privileges to Platinum M Card and VIZ Card members of Siam Piwat as well as holders of membership cards issued by the five international partners. Shoppers enjoy benefits, including five to 50% discounts from more than 2,000 stores in the five popular shopping destinations and the same VIP service as they would have in their home countries.

    Among those services are personal assistants on hand to give members information at the partner shopping venues, welcome gifts worth more than THB 3000 and service at an exclusive lounge.

    Siam Piwat expects to expand the programme to include five more countries next year.

  • CapitaMalls snaps up Malaysian centre

    CapitaMalls snaps up Malaysian centre

    CapitaMalls Malaysia Trust will pay RM540 million (US$150 million) to buy the Tropicana City Mall and its office tower.

    The four level Tropicana City Mall opened in 2008 and has a net lettable area of 448,248 sqft and 1759 car park. It is attached to a 12-storey office building.

    As of January 15, the mall had an occupancy rate of 89.2 per cent and the office tower was fully leased. CapitaMalls had previously considered buying the mall in mid 2013, but the negotiations ended after both parties were unable to agree to purchase terms.

    “The proposed acquisition will further strengthen CMMT’s position as a sizeable, well geographically diversified shopping mall real estate investment trust in Malaysia,” CMMT said in a statement.

    “Following the completion of the proposed acquisition, CMMT’s property asset value will increase by 16.7 per cent from RM3.2 billion to about RM3.8 billion. This is expected to increase CMMT’s visibility among Malaysian and international investors to support its future growth.”
    CMMT will fund the purchase through debt and/or equity fundraising, issuing new units.

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  • Aeon plans 500 Thai stores

    Aeon plans 500 Thai stores

    Japanese retailer Aeon is planning to increase its supermarket network in Thailand to 500 outlets by 2020.

    But this year it has scaled back its expansion plans due to what it considers to be a subdued retail market.

    Aeon currently has 76 supermarkets in Thailand most trading under the MaxValu brand, shops which are larger than convenience stores but smaller than full scale supermarkets. Many trade 24 hours.

    The company had planned to open 30 new stores this year but now says it will open just 15 new ones. Next year will see 40 new stores, and then 100 each year through to 2020. About 80 per cent will be MaxValu stores, the rest full sized supermarkets.

    GM Keiji Ono told the Bangkok Post that Aeon would invest up to 400 million baht (US$12.3 million) on upgrading existing stores and opening new ones.

    “We will penetrate the market in provinces in the Northeast such as Ubon Ratchathani and Udon Thani in order to exploit the expected economic boom from the coming regional pact of the Asean Economic Community,” he said.

    New MaxValu stores will soon open in Laem Chabang and Pattaya.

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  • India malls turning friendly for the disabled

    India malls turning friendly for the disabled

    Malls are doing their bit to make the world a better place for people with disability. With Braille signage, wheelchair on call, disabled-friendly washrooms and specially allotted parking space, malls are looking to increasing footfalls by becoming more socially conscious.

    Interestingly, several States such as Maharashtra, Karnataka and Tamil Nadu have also asked mall managements to remove “infrastructure snags” and create a conducive environment for people with disabilities.

    According to the 2011 Census, the number of disabled in India is 26.8 million — 15 million men and 11.8 million women.

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  • LVMH invests in China outlet malls

    LVMH invests in China outlet malls

    The world’s largest luxury brand owner LVMH is to take a cornerstone stake in a unique, upmarket outlet mall business in China, Sasseur.

    The investment will come via its Singapore-based L Capital Asia investment arm, which specialises in identifying upcoming brands and providing venture capital for their growth and market development.

    L Capital Asia will invest more than US$100 million in Sasseur Cayman, which owns four outlet malls, representing the fund’s second biggest investment in China to date. Sasseur plans to open another four malls this year and eventually expand the chain to 20.

    “The outlet concept will become much bigger in China,”  L Capital Asia chairman Ravi Thakran said. “As Chinese consumers become more sophisticated, they want better value.”

    Sasseur Group describes itself on its website as “a comprehensive conglomerate with business as its core”. It uses distinctive artistic executions to lift the shopping experience above the sterile, budget nature of most modern day outlet centres around the world.

    The company dates back 20 years as a brand, having started as a coffee shop.

    It says it adhere to a core business philosophy of ‘art, technology, brand’, developing malls of “high taste”.

    Sasseur sells womens and mens fashion, high end jewellery and sports and leisure goods and provides dining and entertainment options.

    One of its early malls was designed with a blend of Italian inspired architecture and historic influence from the ancient city walls of Nanjing, eastern Sichuan houses and An Hui style architecture. Others have more abstract themes.

    Chairman and founder Xu Rongcan says his goal was to make Sasseur “an outlet with attitude”.

    “What is Sasseur attitude? That is the persistent pursuit of beauty. Sasseur is my entire understanding of art business. I am willing to implant all my understanding and persistency of beauty into my outlet, not only the buildings, luxury, decoration, business content, but also to implant these persistent and pure values into every employee, into every inch land of Sasseur. In the eco art business, let consumers experience the beauty, quality and harvest beauty.”

  • Suntec reaps revamp benefits

    Suntec reaps revamp benefits

    Suntec City’s REIT parent has announced an 11 per cent boost in its income distribution in the quarter to December 31 as the reconfiguration of its crown jewel centre begins to bear fruit.

    ARA Trust Management (Suntec), manager of the Suntec Real Estate Investment Trust, announced it will redistribute S$64.6 million for the quarter. CEO Yeo See Kiat, said the increase was largely due to the completion of Suntec City Phase 2, which boosted the contribution from Suntec Singapore and from income received from an office complex it acquired in Sydney, Australia, a year earlier. As at 31 December 2014, Suntec REIT had assets under management valued at S$8.8 billion, a portfolio dominated by office buildings. But Suntec is a key component, and something of a showcase.

    Suntec is now undergoing Phase 3 of its redevelopment and Yeo said the company had already achieved 91.3 per cent leasing commitment for the entire remaking of Suntec City to-date. “The team is working actively on the leasing of the remaining space.”

    Of the already completed phases 1 and 2, occupancy is 99.6 per cent and its other major mall property, Park Mall, is fully leased.

    The overall committed occupancy for the retail portfolio stood at 99.7 per cent as at 31 December 2014.

    “Our current priorities are to focus on the completion of the remaking of Suntec City as well as proactive lease management to maintain our high occupancy levels of both our office and retail portfolios,” said Yeo

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