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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.

  • World-class EmQuartier Bangkok unveiled

    World-class EmQuartier Bangkok unveiled

    Thailand’s The Mall Group has budgeted a massive US$15 million to launch its premium EM District.

    The first stage is the unveiling of The EmQuartier which it says will position Sukhumvit as “a world-class fashion destination”.

    In collaboration with more than 400 world-class brands and leading Thai brands, a fashion event with more than 200 models – Fashion Extraordinaire – showcased “groundbreaking fashion and urban lifestyle in a stunning new shopping complex”.To mark the shopping experience, prizes worth over 30 million baht will be up for grabs.

    Management of The Mall Group and The Emporium Group led by Supaluck Umpujh, Krissada Umpujh, Paibul Kanokwattanawan, and Kreignsak Tantiphipop, along with business partners, retailers, business owners, executive-level managers, celebrities and local socialites joined the festivities.

    Supaluck Umpujh, vice chairwoman of The Mall Group and chairman of The Emporium Group said a budget of 500 million baht ($15 million) has been allocated to celebrating The EM District’s opening, designed to provide Bangkok with “a stunning experience”.

    EmQuartier Thailand

    The four-month-long celebration which started on March 27 will run until July 31 and is divided into three concepts for three periods, starting with Fashion Extraordinaire, Dining Extraordinaire, and ending with World Extraordinaire.

    For Fashion Extraordinaire, The EM District collaborated with labels including super brands, world-class brands and leading Thai brands to establish itself as the ultimate fashion centre. Brands including Louis Vuitton, Chanel, Dior, Prada, Cartier, Dolce & Gabbana, Celine, Fendi, Gucci, Valentino, Chloe, Loewe, Miu Miu, Salvatore Ferragamo, Burberry, Emporio Armani, Club 21 and many more.

    As a fashion centre, The EmQuartier is home to many leading brands. The Q Stadium is a concept store with trendy clothes and accessories that were carefully selected from around the world. Over 4000 sqm, the urban-wear multi-label World-class fashion centre store’s design concept is ‘the urban playground’ to cater to the city lifestyle of those with sophisticated style.

    More than 50 brands at Q Stadium include Adidas Neo, The Adjective, Carnival, Fly London, Leisure Project Store, Penfield, Superdry, Travel Fox and Vanquish.

    Qurator is the ultimate Thai designer showcase, housing more than 60 leading Thai designer brands on a 6000 sqm space. There are items by established and up-and-coming Thai designers, “so Qurator is not just a store, but also an incubator of ideas and creativity for the Thai fashion industry,” said the company in a statement. New collections are showcased at Qurator for the first time.

    EmQuartier Thailand 2

    The Atelier on G floor, Emporium Department Store was unveiled last December, and is a multi-fashion brand store with leading fashion brands from around the world coveted by fashionistas.

    And Another Story is a new concept store with a variety of products designed by designers from around the world. These products are unique and affordable. There are 160 popular brands from around the world, of which 70 are exclusive brands from abroad and 30 make up a special collection of Thai brands. On a 900 sqm at A building, The EmQuartier, Another Story is divided into six zones.

    Customers can design their own one-of-a-kind stationery to take home at the Stationery zone. The Yellow Korner zone is a gallery filled with work of artists from around the world. The Home & Décor zone offers a variety of home and décor products in many styles. Beach & Resort wear zone offers day looks clothes for mix and match. The Café Zone offers a relaxing city type café, while the Workshop Zone is for people wishing to create unique items.

    The EmQuartier is Bangkok’s newest and most comprehensive centre of food, including ingredients, prepared meals and restaurants and includes the Gourmet Market supermarket which carries a variety of products from around the globe. On an 8000 sqm space, the Gourmet Market has more than 40,000 products, with additional products from Asia and Europe. Snacks, ingredients, fruits and fresh food are sourced from around the world.

    Quartier Food Hall at The EmQuartier features a wide array of international cuisines, making it the one-stop shop food hall in Sukhumvit with Thai, Chinese, Japanese, Korean, Singaporean, Taiwanese, Australian, American and New Zealand food available on a 7000 sqm space that includes restaurants, a food court, and take-home shops.

    A Shopping Extraordinaire promotion offers prizes worth more than 30 million baht. For every 2000 baht spent, shoppers receive a coupon for a chance to win one of four amazing prizes: Park 24 condominium, Porsche Macan, Mercedes-Benz CLS, and Veranda Residence Pattaya condominium. There are other prizes as well, all of which are available when meeting shopping terms until July 31, 2015.

    EmQuartier Thailand 3

    The EM District features a range of Premier Collections in partnership with international and local brands. Here is the full list:

    • Louis Vuitton: Special collection ‘Monogram Rouge Noir’ by Nicolas Ghesquiere.
    • Cartier: ‘Cartier Tradition’ collection with piece carefully selected from around the world.
    • Bvlgari: High Jewelry collection extraordinary for celebrating launch The EM District.
    • Dolce & Gabbana: Special collection with exclusive Runway Pieces.
    • Saint Laurent: Exclusive Spring Summer Collection and precious skin bag limited quantity.
    • Valentino: First flagship store that offers a full range men and women collection, also the VIP lounge.
    • Céline: The first and only new concept boutique in Thailand with Ready-to-wear collection from runway.
    • Loewe: Spanish leather goods brand presents runway collection by Jonathan Anderson.
    • Jimmy Choo: The first and only in the world ‘Candy Clutch – Bangkok’ limited edition and men collections boutique in Thailand.
    • Chloe: ‘Drew’ in limited edition Gold/Nude, Exclusive piece ordered for The EM District opening.
    • Proenza Schouler: ‘PS1 Tiny Woodblock’ exclusive collection
    • Paul Smith: T-Shirt ‘Bangkok Edition’ Exclusively by Sir Paul Smith.
    • DVF: Jewellery launch collection inspired by the chic bohemian.
    • Issey Miyake Bao Bao: Japanese fashion brand with limited edition bag collection.
    • MCM: The first boutique in Thailand and special collection “MCM Ekocycle Project”, a collaboration between Will-i-am and Coca-Cola.
    • Coach: “Coach Swagger” patchwork special collection.
    • A Bathing Ape: The first boutique in Thailand and special Baby Milo x Hello Kitty collection.
    • Veilebrequin: Swimming trunks made of 24K gold.
    • Sephora: Special eye shadow collection from a collaboration with well-known jewelry designer Shourouk.
    • Qurator: Special designs, available exclusively at The EmQuartier by Thai designers from over 60 brands.EmQuartier Thailand 4
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  • Kintetsu Osaka targets foreigners

    Kintetsu Osaka targets foreigners

    Kintetsu Department Store, located in Osaka’s tallest building, has launched a program to attract tourists.

    Like most Japanese retailers – and especially department stores – Kintetsu Osaka is battling to maintain sales and growth in a depressed economy with a steadily declining population.  Many retailers are developing programs to attract more foreign customers – with even convenience store network 7-Eleven launching duty free sales in selected stores for customers who can show a foreign passport.

    From April 20, Kintetsu’s main Osaka store in Abeno Harukas Tower will open a new ‘Foreign Customers’ Salon’ and Kokumin’ drugstore in the Wing Building. The new salon is designed to attract more foreign tourists by providing tailored customer services.

    Abeno Harukas -Trickart 415

    The new salon consists of two sections – an 80sqm ‘Service Salon’ which provides services such as duty-free procedures and luggage check-in and a 500sqm ‘Experience Salon’, which offers traditional Japanese experiences.

    Both salons will feature bonsais, traditional gravels and washbasins and provide foreign customers with a Japanese-styled, relaxing space. The drugstore offers popular Japanese products, pharmaceuticals and cosmetics.

    The service salon will provide duty-free procedures, guest coupons, complimentary beverages, smartphone charging, internet connection, a shopping escort service with an interpreter (reservation required),  luggage check-in, delivery of purchased articles to hotels (Osaka Marriott Miyako Hotel, Tennoji Miyako Hotel, Sheraton Miyako Hotel Osaka) or the airport, sightseeing tours and ATMs.

    The Foreign Customers’ Salon, includes Japanese tea tasting, Tanabata star festival decorations, traditional crafting, electronic beauty products testing and seasonal events.

    The Kokumin drugstore will showcase not only ordinary pharmaceutical products but also electronic beauty products, home appliances, Hello Kitty products and other popular Japanese products.

    Abeno Harukas -kumin 415

    Storewide, the company will offer translation services through human interpreters and a QR Translator allowing shoppers to scan a QR code and read translated information on their smartphones.

    Kintetsu Department Store Chain’s Main Store Abeno Harukas is the first department store to have this new service, available in 10 languages.

    In other initiatives, in-store signboards, floor guides and brochures are now in multiple languages.

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  • China’s new powerhouse: China60

    China’s new powerhouse: China60

    A new generation of emerging Chinese cities represents a whole new frontier for real estate development, according to a study released by JLL this week.

    China60, a comprehensive research report that assesses the nature of real estate opportunities across 60 of China’s most important secondary and tertiary cities, maps out China’s emerging business locations and identifies the drivers that are shaping China’s city hierarchy.

    Tianjin city, pictured above, heads the list. (Refer to the infographic below for more demographic information on the 60 cities).

    The cities comprising China60 equate to the world’s second-largest economy in terms of purchasing power and despite the economic slowdown, are projected to contribute 15 per cent of global growth over the next decade.

    “As China60 cities enter a new era of competitiveness, domestically and globally, ‘city brand-building’ will be a defining theme over the next few years,” explains KK Fung, MD for JLL Greater China.

    “Quality of life, cultural assets, and environmental considerations are coming to the fore as these cities compete for talent and businesses. The real estate industry will play an important role in making the China60 cities liveable, resilient, and sustainable.”

    Fung says these cities are emerging as the new growth engines at a time when China is transitioning from fast growth to smart growth.

    “This ‘New Normal’, marked by lower but more sustainable economic growth, means that decision makers in the commercial property industry need to reassess their strategic choices in the light of higher-value growth, which will boost demand for modern commercial real estate across the China60 cities,” he said.

    In retail, with a huge influx of new shopping malls, the rapid adoption of e-commerce is also quickly driving the retail sector into uncharted territory.

    “But the sector will blaze its own trail as bricks-and-mortar facilities grow in tandem with omni-channel and experiential retailing.”

    Jeremy Kelly, JLL’s director in Global Research, said while much of the growth is coming from secondary and tertiary cities in Southwest, Northwest and Central China, the rise of mega city-regions is adding a new complexity to China’s urbanisation.

    “Satellite cities in the Yangtze River Delta region, in particular, have shown remarkable growth, thanks to dynamic private enterprises, advanced supply chains, and strong intra-regional connectivity.

    “The macro fundamentals to deliver ongoing strong demand for all major commercial real estate sectors over the next few years are evident, and China60 has tremendous capacity to absorb any excess commercial real estate space over the medium term. The demand for office, retail, warehousing, and hotel space will rise in tandem with the shift of economic development towards expanding the service sector.” said Kelly.

    “However, following years of rapid economic expansion, China60 cities are currently facing a short-term oversupply. As these markets mature, investors will require stronger discipline and much more robust planning and decision-making.”

    The continued growth of the consumer class, now numbering 130 million people in the China60 cities, means the Chinese economy is driven more than ever by domestic consumption. Logistics warehousing will continue to provide exceptional long-term growth opportunities in the China60, underpinned by demand from traditional retail distribution, as well as due to rapid growth in eCommerce and multi-channel retailing.

    In the office sector, as the expansion of large private Chinese companies, such as Alibaba, Huawei, and Tencent, reaches a positive tipping point, they are now a distinctly more visible driver of Grade A office demand within the China60. Tier 1.5 markets in particular will benefit from the shift towards high-value activities, and have a favourable outlook for absorption.

    In contrast, the hospitality sector has been impacted most severely by the ‘New Normal’ and will go through a period of wholesale structural change as it repositions for future growth, says JLL, which expects the sector to become leaner and fitter.

    “It will likely provide some favourable buying opportunities for investors over the next two to three years. Mid-scale and select-service chains are growing quickly.”

    china60-from-fast-growth-to-smart-growth-1-638

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  • John Lewis eyes 11 store openings in the Philippines this summer

    John Lewis eyes 11 store openings in the Philippines this summer

    Britain’s John Lewis Partnership said on Sunday it planned to expand internationally by opening outlets in 11 branches of department stores in the Philippines.

    The outlets, due to open this summer, follow its establishment of shops in seven branches of South Korean chain Shinsegae and an already announced plan to open outlets in three branches of Singapore department store Robinsons.

    The Philippines stores will be set up within branches of SM Retail and Our Home, John Lewis said in a statement, and will be between 300 and 1,000 square feet (30-93 square meters) in size.

    “The success of our partnership with Shinsegae has given us the confidence to continue our expansion in the international market,” said Andy Street, managing director at John Lewis.

    “We are actively looking for more international partnerships, and expect to make more announcements about our international plans in the next year.”

    Street said that while the move would give John Lewis, which already delivers to 33 countries, access to a new emerging market, its focus on physical expansion remained on Britain.

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  • Major rebuild for Siam Discovery

    Major rebuild for Siam Discovery

    Thai mall developer Siam Piwat is planning a 4 billion THB (US$125 million) rebuild of its downtown Bangkok Siam Discovery shopping mall.

    Siam Piwat, which owns the adjacent Siam Square and Siam Paragon malls, says it is planning a total renewal for both the center’s interior and exterior. When the result is unveiled to the public in early 2016, the centre’s theme will be “Breaking All The Rules”.

    The centre will host a ‘groundbreaking sale” from April 23 to May 5 before it closes down for the refurbishment.

    When it reopens, Siam Piwat promises “a first-time phenomenon with a number of original ideas never before seen in Thailand.”

    Siam Piwat spokesperson Siriphen Intuputi said the 4 billion THB investment is additional to the five year, 55 billion investment announced last year covering new properties and refurbishments.

    Mrs. Siriphen Intuputi, senior executive for Marketing and Public Relations, Siam Piwat Co., Ltd 415

    The 18 month old centre has always struggled in the shadows of its neighbours, Siam Centre, Bangkok’s oldest modern day shopping centre, and the massive Siam Paragon which, when it opened, was Thailand’s largest shopping centre. Siam Centre reopened in 2013 after a comprehensive renovation which has drawn praise from retail experts and designers and been an unequivocal trading success.

    “The success of our renovation of Siam Center two years ago where we received amazingly good feedback from tenants and visitors made the management and staff of Siam Piwat confident in the company’s approach to maintaining its lead in introducing innovations to the retail industry,” the company said in a statement.

    “So the company decided to give [Siam Discovery] a total renewal in order to bring new experiences of the era to Thai shoppers and international visitors who will come to Thailand in great numbers following the creation of the ASEAN Economic Community (AEC).”

    Siam Discovery 2-415

    Observed Siriphen: “We believe that after the AEC takes effect, Thailand’s retail industry will grow by more than 25 per cent. There is a lot of new investment in the retail sector in anticipation of future economic growth. This includes Siam Piwat’s planned investment during 2015 – 2019, with the renewal construction of Siam Discovery a part of the plan.”

    During the course of the rebuild, the entrance to Madame Tussauds Bangkok will be changed to  within Siam Tower. Well-known brands with stores inside Siam Discovery have been given temporary space within Siam Center and Siam Paragon..

    “Siam Piwat has drawn a detailed plan for the total renewal of Siam Discovery and we are confident that when the new Siam Discovery opens, it will be an unprecedented phenomenon in the retail industry with many original and trendy ideas.  It will be the talk of the town just like when the new Siam Center was unveiled,” said Siriphen.

    She said details of the unique new concept will be revealed later.

    Siam Discovery, Thailand’s first lifestyle shopping mall 415

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  • Matahari Putra Prima opens a 3rd Foodmart Store in East Java

    Matahari Putra Prima opens a 3rd Foodmart Store in East Java

    Indonesia’s Matahari Putra Prima, the operator of Hypermart, Foodmart and the Boston Health & Beauty retail chain, opened a Foodmart supermarket in Madiun, East Java, on Monday, as part of the company’s expansion to the fast growing city.

    The store is located at Suncity Mall in Madiun city centre and will occupy a gross area of 1,500 square meters. It is the company’s third Foodmart store in the country’s second most populous province.

    “Madiun has remarkable economic growth, especially in the trade and services sectors,” said Danny Kojongian, MPP’s director of public relations and communications, in a statement.

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  • Indonesia’s 1st Aeon Mall to open in May

    Indonesia’s 1st Aeon Mall to open in May

    Shopping mall developer Aeon Mall Indonesia and real-estate giant Sinar Mas Land, have joined forces to open Indonesia’s first Aeon Mall on May 30, a company executive revealed on Wednesday.

    The new joint entity behind the shopping center has been named Aeon Mall Sinarmas Land Indonesia, or AMSL

    The announcement confirms a report  detailing the endeavor in GlobeAsia last October, which also quoted Sinar Mas Land director Ishak Chandra in estimating that the project would cost between $150 million and $200 million.

    Located in BSD City, a Sinar Mas Land township in Tanggerang on the southern outskirts of Jakarta, the mall will house 280 stores — 47 of which are part of popular Japanese franchises.

    Nearly half of these brands are completely new to Indonesia, AMSL operations manager Adrian Pranata said.

    Ryuma Okazaki, president director of both AMSL Indonesia and Aeon Mall Indonesia, said the joint venture is expected to attract 12 million visitors a year.

    Its main target market is middle to high-income consumers living in BSD City, Tanggerang, West Jakarta and North Jakarta, he added.

    Land and construction costs of the 100,000-square meter mall ultimately reached $160 million.

    Aeon Mall Indonesia is a local arm of Japan-based shopping mall developer and operator Aeon, while Sinar Mas Land is the property holding company of giant conglomerate Sinar Mas Group, which owns a diversified businesses across the country. Aeon Mall Indonesia contributed 67 percent of the shopping center’s investment.

    Okazaki also confirmed Aeon’s plan to open 20 new malls in Indonesia, mainly in West Java and the Greater Jakarta area — which includes Bogor, Tanggerang, Bekasi and Depok — to tap into Indonesia’s rapidly growing middle class.

    The Japanese company had set a five- to eight-year investment plan worth 80 billion yen ($667.57 million) in 2013.

    Okazaki added that the investment costs may have surged by now, due to inflation, foreign exchange fluctuations and higher construction costs.

    Adrian of AMSL said Indonesia’s second Aeon mall will likely be located in Jakarta Garden City, a township in East Jakarta developed by Sinar Mas land rival Modernland Realty.

    Construction is scheduled to commence in May, he added.

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  • Revamp pays off for Times Square

    Revamp pays off for Times Square

    A revamp of Hong Kong’s iconic Times Square shopping centre led to an 11 per cent rise in retail sales to a record HK$10.5 billion (US$1.35 billion) last year.

    Owner, The Wharf Holdings, said its overall revenue from the mall rose 21 per cent to HK$2.544 billion (US$328 million) and operating profit rose 24 per cent to HK$2.276 billion (US$293 million).

    Occupancy maintained at virtually 100 per cent.

    Times Square, prominently located at the heart of the Causeway Bay retail precinct, is among the most successful vertical malls in the world with 17-levels of shopping and a direct connection to the underground Mass Transit rail system.

    It also features one of the few open Piazza squares areas of any mall in Hong Kong.

    “The enhanced Times Square has pushed the bar to new heights and caters to higher levels of service, sophistication and entertainment demands from a broader range of shoppers. This sparked new growth in retail sales and revenue in 2014,” said The Wharf Holdings.

    New anchors and coveted luxury brands added in 2014 included Chanel, Louis Vuitton, Dior Homme, Fendi and De Beers. Culinary offerings including Yun Yan, Pak Loh Chiu Chow Restaurant and Enmaru, the top-ranked Izakaya style Japanese debut as well as Laduree Tea Room, the renowned French café’s debut, which The Wharf says have met with encouraging responses from customers.

    The state-of-the-art five screen cinema Cine Times spanning the 12th to 14th floors have helped drive foot traffic, boosted sales and created value.

    The trade mix was further enhanced with addition of a diverse range of tenants from leading high-end brands such as Celine, Jimmy Choo and Hugo Boss to popular mass brands such as Topshop and American Eagle Outfitters. Gucci is set to open a vertical duplex store by mid-2015 and some tenants on the atrium floors will relocate with new store designs.

    The creation of a semi-retail zone at the upper floors further strengthened the tenant mix. il Colpo opened a 4800 sqft and Sulwhasoo opened its first 10,000 sqft beauty and Spa centre on Hong Kong Island.

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  • Hong Kong trust buys Beijing mall

    Hong Kong trust buys Beijing mall

    A Hong Kong REIT has made its first foray into mainland China, buying a Beijing mall.

    The Link Real Estate Investment Trust has paid 2.5 billion yuan (US$399.7 million) for the 800,000 sqft EC Mall in Beijing’s Zhongguancun district.

    “The EC Mall contributes to our strategy of long-term investment in real estate assets that are sustainable, income-producing properties,” said Link Management CEO George Hongchoy.

    “With this investment, we continue to build long-term income and capital growth, while maintaining a large and diversified portfolio of real estate in Hong Kong and other jurisdictions, including the mainland.”

    The seven-storey EC Mall is almost fully leased and tenants include recognised global brands including H&M, Zara, Uniqlo, Nike and Sephora. It opened in 2009.

    In a statement, Link said last month’s rental income topped 13 million yuan ($2 million), with some shops achieving as much as much as 1000 yuan ($161) per sqm each month. The average monthly rent exceeds 300 yuan ($48) per sqm. Link will receive an annual yield of 6.24 per cent.

    “The acquisition is a solid long-term investment opportunity to grow our property portfolio and bring potential valuable returns to our unit holders,” Hongchoy said.

    “The mall is well positioned to capitalise on the growing spending power of local residents of Zhongguancun and the greater Haidian district. We believe the company will benefit from the anticipated growth in rental and value of the property.”

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  • SSI Group plans 130 new stores

    SSI Group plans 130 new stores

    Fresh from announcing record profit growth, Philippines specialty retail operator SSI Group says it plans to open 130 new stores this year.

    The expansion plan will be ramped up even further if current discussions with four international fashion brands not yet launched in the Philippines come to fruition. They could arrive late this year or in early 2016.

    As reported by Inside Retail Asia on Tuesday, SSI Group grew topline sales by 19 per cent last year and achieved a 63 per cent increase in profit.

    It ended the year with 723 specialty stores and 134,000 sqm of retail trading area. The company’s brand portfolio includes Marks and Spencer, Gucci, Burberry, Hermès, Prada, Salvatore Ferragamo, Lacoste, Michael Kors, Kate Spade, Gap, Bershka, Aeropostale, Samsonite, Nine West and Payless Shoe Source.

    SSI President Anton T Huang said the company will continue its expansion strategy, with plans to add 21,000 sqm of trading area this year and a further 16,000 sqm in 2016.

    The growth is being spurred by the growing disposable income of middle class Filipinos and rapid development of new shopping malls.

    SSI already has a presence in at least 70 shopping centres across the country.

    The last three years saw SSI add 64,000 sqm of retail space, more than half of that opening last year alone.

    “There really is a very steady supply of new shopping malls coming up, just taking into account the continued growth in consumption expenditure and increasing sophistication of consumers not only in suburban areas within the metropolis but in secondary cities throughout the country,” Huang said.

    “Just looking at 2014, it was a very good year for us… We grew our top line sales by 19 per cent and in terms of fourth quarter alone, we grew our top line sales by 26 per cent,” said Huang.

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  • Chinese drive Europe outlet malls

    Chinese drive Europe outlet malls

    Chinese travellers are poised to become the biggest global spenders at McArthurGlen designer outlets in Europe.

    Fashion-conscious travellers from China and across Asia are spending big at McArthurGlen’s  20 Designer Outlet centres located across Europe, with Chinese visitors poised to become the most prolific spenders in 2015.

    The company, a joint venture with US property giant Simon, says total tax-free sales at McArthurGlen Designer Outlets reached a record high in 2014, reflecting a more than quadrupling of sales to international travellers over the past four years.

    “Impressive sales growth was seen from Chinese shoppers, up 36 per cent, and from Korean travellers, whose spending increased 32 per cent” the company said.

    The projections for future Chinese spending overseas are even more impressive. In 2014, 109 million Chinese tourists spent US$164 billion worldwide, while 174 million Chinese tourists are tipped to spend $264 billion annually by 2019, according to Bank of America Merrill Lynch.

    “These upward global spending figures are being reflected in sales at McArthurGlen’s Designer Outlets. In 2014, Chinese shoppers accounted for 25 per cent of total tax-free sales, ranking second overall behind Russian travelers (29 per cent). Korean visitors ranked third, with five per cent of total tax-free sales.

    “In 2015, Chinese visitors will likely overtake Russian tourists as the number one international spender.”

    McArthurGlen Designer Outlets is responding to the burgeoning Chinese interest by increasing its digital engagement with consumers in China. A dedicated page is about to be launched on social media channel WeChat, and McArthurGlen also re-launched its Sino-Weibo page. In addition, the McArthurGlen App and The Guide is available in 12 languages, including Chinese.

    Anthony Rippingale, McArthurGlen’s head of tourism, says the company’s sales to international shopping tourists are increasing twice as fast as for overall tax-free retail sales in Europe.

    “We are noticing particularly impressive growth from Korea and China, whose shoppers rank first and second for average transaction value for international visitors.”

    Across all international shopping markets, the most popular McArthurGlen Designer Outlets in 2014 for tax-free shopping were: Serravalle (near Milan, Italy), Roermond (near Düsseldorf, Germany), Parndorf (Vienna, Austria), Noventa di Piave (Venice, Italy) and Castel Romano (Rome, Italy).

    In June, McArthurGlen will open its first centre outside Europe, in Vancouver, Canada.

    “The latter will be of special interest to Chinese shoppers after the announcement of the new 10-year Canada visa plan for Chinese guests was announced in March,” the company said.

    McArthurGlen Group, Europe’s leading owner, developer and manager of designer outlets, was founded in Europe by Kaempfer Partners in 1993. Since then, the company has developed nearly 600,000 sqm of outlet space, with a current value of more than euro 3 billion, and manages 20 McArthurGlen Designer Outlets across eight countries: Austria, Belgium, France, Germany, Greece, Italy, the Netherlands and the UK.

    In 2013, McArthurGlen became a joint venture between the world’s largest retail developer, Simon Property Group, and Kaempfer Partners.

  • Harvey Nichols Baku opens

    Harvey Nichols Baku opens

    The once Soviet state of Azerbaijan has become British department store Harvey Nichols’ newest overseas market.

    A new seven-storey Harvey Nichols store has opened in the fast-growing capital city of Baku offering 110,000 sqft of space selling more than 500 labels in men’s, women’s, children’s and bridalwear; a cosmetics hall, perfumery, cafe, restaurant, lounge and club.

    Stacey Cartwright, group CEO of Harvey Nichols, said in an interview Azerbaijanis were showing an increasing demand for luxury goods and the market was “fast becoming one of the top luxury retail destinations in the world”.

    Harvey Nichols already has stores in London, Hong Kong, Saudi Arabia, Turkey, Dubai and Kuwait.

    Harvey Norman Baku opens amidst esteemed neighbours, with Burberry, Armani, Valentino and Dior already operating stores in the city, and Donald Trump planning to open a hotel there in June.

    Baku will host a Formula One Grand Prix on a street circuit from 2016.

    Located on shore of the Caspian Sea, Baku has a population in excess of 2 million.

  • Surprise buyer for BHS

    Surprise buyer for BHS

    Arcadia Group founder and controlling shareholder Sir Philip Green has sold department store chain BHS to a little known investment house, Retail Acquisitions Ltd.

    The BBC has reported the asking price for BHS was as low as £1 and the business was sold debt free.

    The sale frees Arcadia from a drag on the earnings of its other, far more successful, retail brands including Topshop and Miss Selfridge.

    News that Retail Acquisitions was the successful bidder follows intense speculation for several months, the most recent just last week. As Inside Retail Asia reported on March 9, a new bid was being prepared by Tony Brown, a former retail director at BHS, working with a private equity fund Alteri Investors, in turn backed by Wall Street fund Apollo. That, like earlier talks with South Africa’s Pepkor Group, ultimately failed.

    Retail Acquisitions, described as an “obscure” business by the BBC’s business editor, counts among its directors a former Formula 3000 racing driver and entrepreneur Dominic Chappell, former director of City finance house Nabarro Wells, Keith Smith, lawyer Edward Parladorio and Lennart Henningson, a former senior advisor for HSN Nord Bank.

    BHS was founded in 1928 and now has 180 stores and about 12,000 staff. Arcadia Group said BHS’ cash losses rose from £19 million to £21 million in the year to August 30.

    In a statement, Sir Philip said he was pleased to have found a buyer in Retail Acquisitions Ltd which wants to develop the BHS brand.

    “Having acquired the business nearly 15 years ago in May 2000, one of my clear objectives in identifying a purchaser was ensuring their desire to take the business forward.”

  • Myer may be planning to close stores

    Myer may be planning to close stores

    Australian retail giant Myer could close seven stores to help reignite sales growth, analysts say.

    The department store chain has a number of underperforming stores that could be closed to simplify the business and improve its financial performance, Citigroup analysts said.

    Myer has 67 stores across Australia, mostly in capital cities, but also in regional centres including Bendigo, Ballarat, Dubbo, Orange, Wagga and Mackay. Sales could also be boosted by lifting staff numbers and spending more on marketing, the Citi analysts said.

  • Harbour City mall boosts market share

    Harbour City mall boosts market share

    Retail sales Hong Kong fell 0.2 per cent in 2014 – but Harbour City mall bucked the trend with an increase in footfall, sales and market share.

    In its annual profit announcement, parent The Wharf Holdings said total sales in the centre grew by 3.4 per cent to set another record of HK$35 billion. Market share improved further to 7.1 per cent, “manifesting its productivity and leading position in the marketplace”.

    Revenue to Harbour City from retail increased by 16 per cent to HK$5.674 billion.

    The Wharf described Hong Kong’s retail market last year as “challenging,” primarily due to mainland China’s anti-extravagance campaign that dented luxury spending and competition from Europe, Korea and Japan as their currencies continued to weaken relative to Hong Kong Dollar and Renminibi. “The ‘Occupy Movement’ towards the end of the year inflicted further damage.”

    The company said good management, size and location are the key success factors contributing to the Harbour City mall’s outperformance in a competitive retail landscape.

    “With 2 million sqft of contiguous mall space, Harbour City is among the world’s leading shopping destinations. It is the core of the “Greater Harbour City” cluster with 6 million sqft spanning vibrant shopping, entertainment, dining and lifestyle in Tsim Sha Tsui’s most dynamic retail area. Its presence strengthens the prominence of the region,” said The Wharf.

    “The coveted Harbour City and its 530 metre contiguous retail frontage along Canton Rd is well positioned as a global retail showcase for celebrated brands and has become the most sought-after location for the best-of-class retailers.”

    Demand from renowned fashion brands for expansion and flagship stores at Harbour City remains intense, the company said. New additions Bvlgari and Valentino and the expansion of Prada took place on on Canton Rd last year. Other expansions inside included Moncler, Celine, Roger Vivier and Jimmy Choo

    New openings or commitments further refined the tenant mix, including Chaumet, Van Cleef & Arpels and Italian fashion brand Armani Collezioni. Michelin star chef’s Italian restaurant La Locanda by Giancarlo Perbellini, French fine dining Dalloyau and Wedgewood’s café opened their debut stores in Hong Kong at Harbour City.

    Jamie (Oliver)’s Italian is also set to open its Kowloon debut. Following the opening of Uniqlo’s largest flagship store in Kowloon in April, Page One’s 37,000 sqft full concept store and Versace’s three-level full concept store were opened in late September and October respectively.

    Meanwhile, Ocean Terminal’s renovation is progressing to plan. Upon completion of the new escalators at KidX and a new atrium as well as creation of three new shops taken up by Mont Blanc, IWC Schaffhausen and Hublot in Golden Mile, new retail and food and beverage attractions on the third floor will be created by mid-2015.

    Designed by Foster & Partners, the extension building plan for OT is pending approval. New culinary options with breathtaking panoramic views of the Hong Kong harbour and skyline will be offered at the extension building.

    The Wharf says a series of trade-mix enhancements as well as the renovation and extension of OT “will further unleash retail value, add growth impetus and bring surprises and excitement to the discerning shoppers”.

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