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  • Bleak result for Isetan Singapore

    Bleak result for Isetan Singapore

    Japanese department store operator Isetan has reported mounting losses in Singapore as sales fall and rents rise.

    Group sales for the three months to June 30 were $71.467 million, a decrease of $10.819 million or 13.15 per cent over the same quarter a year ago. Isetan said the decrease was largely due to the closure of its Isetan Orchard store at the end of March to prepare the store space for subletting, and a slowdown in sales in all of its stores (except Isetan Jurong East) “due to an environment of slower economic growth and stiff competition amongst retailers”.

    In the second quarter the company incurred a loss after tax of $5.847 million, compared to a loss of $1.214 million in 2014.

    Higher rent at Isetan Scotts, affected both the store’s result and was the main reason for the overall increase in the rent outgoings.

    “At Isetan Orchard, the process of finding tenants and converting the space for renting out is ongoing,” the company said in a statement.

    “In this respect, there was no rental income from this store during Q2.”

    “At Isetan Jurong East, although the store is experiencing sales growth, it is not contributing to profits yet. The general slowdown in sales was also a drag on the results of the Group for Q2.”

    Its other stores are at Katong, Tampines and Serangoon Central.

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  • Korea on sale

    Korea on sale

    In a bid to revitalise the national tourist market and domestic economy, withering in the wake of the Middle East Respiratory Syndrome (MERS) outbreak, Korea will go on sale.

    Branded the ‘Korea Grand Sale’, the 10 week long promotion will run from August 14 to October 31.
    Officials say that the sale will be the largest in scale since the event started.

    “We advanced the date of the Grand Sale, which usually took place in winter, out of desperation. We hope the sale can continue to bring tourists back to Korea instead of ending as a one-time event.”

    Criticised for offering discounts only to foreigners, officials said they are persuading participating companies to give discounts to local consumers as well.

    “Businesses in traditional markets and some convenience stores are showing positive responses towards the idea.”

    Benefits such as discounts for transportation and free WiFi modem rental services will be provided. In addition, the Korea Grand Sale Event Center located at Doota Square in Dongdaemun will provide translation services, information about tourism, beverages and special events.

    Han Kyung-ah, the executive secretary of the Visit Korea Committee, explained the intentions of the Korea on sale event: “We intend to attract tourists headed to Hong Kong and Japan towards Korea by providing abundant benefits.”

    Various promotions introducing Hallyu content and traditional culture will also occur.

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  • Ever-Glory sales slide

    Ever-Glory sales slide

    Chinese fashion retailer Ever-Glory International says its sales fell 11.6 per cent in the three months to June 30.

    Total sales for the quarter were US$75.7 million, the slide primarily due to a 6.8 per cent decrease in its retail business to $45.9 million and an 18.1 per cent decrease in its wholesale operation to 29.8 million.

    Ever-Glory had 1204 retail stores as at June 30, 49 more than at the same time last year.

    Total gross profit for the quarter increased 2.4 per cent to $30 million.

    Based in Nanjing, China, Ever-Glory retails branded womens fashion apparel through its own store network under the brands La Go Go, Velwin, Sea To Sky and Idole in China.

    Ever-Glory is also a leading global apparel supply chain solution provider with a focus on middle-to-high end casual wear, outerwear, and sportswear brands. Ever-Glory services well-known international brands and retail stores by providing supply chain management, fabric development and design, sampling, sourcing, quality control, manufacturing, logistics, customs clearance and distribution etc.

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  • Bulgari Macau’s new generation boutique

    Bulgari Macau’s new generation boutique

    Bulgari Macau’s new luxury boutique at the Galaxy features the new architectural design concept developed by Peter Marion.

    Following the renovation of the Via Condotti flagship in Rome, the new architectural design concept is being rolled out by the LVMH brand in the most prominent locations worldwide, mirroring the brand’s signature architectural elements and expressing its Mediterranean origins and Roman traditions with a classic Italian approach to modernity.

    The Galaxy Macau store, which began trading in July, is thus one of the first in the world to carry the new image.

    Bulgari says the dominant idea is expressed by “a classic geometry open to modern interpretation, in a continuous interplay between innovation and tradition”.

    The 290 sqm space encompasses the brand’s design key elements, such as the three institutional giant windows alternate with three Condotti showcases and the Condotti eight point star, still present in the original historical flagship in Rome Condotti 10.

    The boutique also houses some furniture selected by Peter Marino himself and conceived by the Italian designers who have had link with the Bulgari heritage, such as the product counters by Carlo Scarpa, the sales tables by Franco Albini, or the central Eros marble table by Angelo Mangiarotti.

    The brand touch is also provided throughout the areas transformed into a Bulgari art-gallery: walls are decorated with Vintage most famous endorsements of celebrities who have been truly fan or ambassadors of the brand’s Italian exciting lifestyle.

    The boutique features an exclusive Bridal, Men, Accessories and VIP area, where the most precious creations can be viewed in total privacy.

    Bulgari Galaxy Macau is located at Shop G094 on the ground floor.

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  • Paradigm Mall to be new JB retail hub

    Paradigm Mall to be new JB retail hub

    A new shopping centre announced for Malaysia’s southern city Johor Baru, will be the largest mall in town when it opens in late 2016.

    Paradigm Mall was launched by Malaysia’s Tourism and Culture Minister Datuk Seri Mohd Nazri Aziz. It will be developed by WCT Holdings Berhard.

    The six story, 600,000 sqm mall will house a 16 screen multiplex cinema, an indoor rock climbing facility and an ice skating rink, alongside a large line-up of local and international brands inlcuding department store Sogo and the Village Grocer supermarket.

    Aziz described Johor Baru – a short drive across the border from Singapore – as “untapped potential” suggesting the new mall could help attract Singaporean shoppers to the city.

    “Johor Baru is among the top five shopping areas for foreign tourists, and I hope to work with integrated developments such as Paradigm Mall to promote Malaysia internationally,” he said at a launch function.

    The new mall will also incorporate a four-star hotel and serviced residences.

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  • Starbucks tests smart smartphone case

    Starbucks tests smart smartphone case

    Starbucks Japan is involved in a unique trial which allows customers to order and pay for their coffee with a swipe of their phone.

    The concept uses a branded smartphone case which is preloaded with the customer’s preferences.

    Trend monitoring website Springwise.com reports the Starbucks Touch phone case was developed in collaboration with Japanese clothing brand Uniform Experiment, and can currently be used in two Starbucks branches in Japan.

    The case – made for iPhone 6 – is designed to resemble a Starbucks coffee cup and features the brand’s iconic logo. It works like a prepaid Starbucks loyalty card, letting customers make cashless coffee purchases. It also enables users to save their preferred store and favorite beverage via a companion app. Upon arrival, customers simply launch the app and place their order, settling up by touching their phone case on the contactless payment device.

    The Starbucks Touch is available online for JPY 3000, or about US$25.

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  • SSI Group enters travel retail arena

    SSI Group enters travel retail arena

    Philippines specialty store operator SSI Group has made its first foray into the travel retail sector.

    SSI, through a subsidiary SKL International, has bought a 50 per cent stake in Landmark Management Services which marks its debut in the increasingly lucrative travel retailing category.

    The stake was acquired from duty free distributor Prime and the Regent Asia Group.

    “We are very happy to be part of the development of the travel retail industry. We believe that with SSI’s retailing experience and Landmark’s deep understanding of the unique shopping requirements of travelers, we can expand our market to cover tourists and business travelers,” SSI President Anthony Huang said in a statement.

    Landmark operates duty free and travel retail fashion stores at the Philippines’ larger airports as well as at Fiesta Mall in downtown Manila, under a concession from Duty Free Philippines.

    SSI Group ended last year with 723 specialty stores and 134,000 sqm of retail trading area and was planning to open a further 130 this year, outside this week’s acquisition. 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.

  • London retailers revel in Chinese influx

    London retailers revel in Chinese influx

    Hong Kong retailers wondering where those cashed up, big spending Mainland Chinese tourists have been unzipping their wallets… here is your answer: London.

    According to the Retail Gazette, spending by Chinese Visa card holders rose 44.5 per cent in the UK in July – outstripping spending by tourists from France and Australia.

    Inbound tourists from China now account for more spending than those from any country except the US which retains top spot.

    Retail Gazette reports the growth in Chinese spending was strongest in supermarkets (up 79 per cent) and in high street stores (up 40 per cent).

    Shopping accounted for 40 per cent of Chinese tourists’ spending in the UK

    “China is one of the fastest growing sources of tourism income for the UK and it looks set to become an important driver of growth for the sector,” said Kevin Jenkins, UK & Ireland MD with Visa Europe.

    “Spending on cards has seen a significant boost as Chinese tourists travel to the UK, confident in the use of plastic overseas.

    “With shopping a top attraction for Chinese travellers, UK retailers are likely to consider additional ways to appeal specifically to this audience,” Jenkins said.

    “Pre-travel marketing, multilingual staff and new product lines in store may be three things we see more of.”

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  • Global Brands in talks with Alibaba, JD.com

    Global Brands in talks with Alibaba, JD.com

    Global Brands Group is discussing a possible “strategic alliance” with Chinese eCommerce companies Alibaba and JD.com.

    The two e-tailers are declining to comment on the matter, but based on comments by Global Brands CEO Bruce Rockowitz, Bloomberg reports the alliance “could involve online sales of brand-name children’s wear, among other products, through Alibaba’s Tmall and JD.com, and co-operation offline”.

    Rockowitz said a formal announcement is likely later this year.

    “We are working with JD and Alibaba on a strategic alliance, joint venture,” he said. “It’s a relationship or joint venture together that can create a solution online, offline and mobile that none of us can do by ourselves.

    “Both of them want to do something. They don’t have the content, just platforms, but they want to go to the next level.”

    The comments came in the wake of Global Brands’ first full year results announcement earlier this week when it reported stronger margins as it continues to shed non-performing brands in favour of higher end products.

    Last December, Global Brands announced a joint venture with David Beckham and his business partner Simon Fuller. The joint venture, Seven Global, focuses on the continued development of the brand around David Beckham as well as on creating large scale brands in partnership with a select number of high‐profile sports and entertainment icons. The venture will cover all major consumer product categories.

  • Indonesia liquor retailers brace for downturn

    Indonesia liquor retailers brace for downturn

    Indonesia liquor retailers fear the recent surprise increase in import tariffs on wine and spirits could more than double the price of some drinks.

    Indonesia’s Muslim-controlled government is effectively declaring war on drinkers. In April liquor sales were banned from convenience stores – a move recently blamed by Dairy Farm International for the closure of many of its convenience stores in Indonesia and prompting a strategic review of the entire chain.

    Last month the government announced shock tariff increases on a raft of imported products in a 1970s-styled economic move to protect inefficient local industry and deter imports. This despite its inclusion in the ASEAN bloc which encourages free trade within the region.

    Drinks industry executives told news agency Reuters the tariffs could “more than double prices” that were already sky-high, even by Asian standards. They fear an increase in smuggling activities and a black market for fake alcohol which is already an issue in China and Vietnam, leading to fatalities from people drinking chemical-enhanced fluids sold in fake branded bottles.

    The new tariffs, which took effect on July 23, force importers to pay 90 per cent duty on the value of wine and 150 per cent on spirits. The previous regime was a fixed amount per litre.

    “It’s quite a shock to the industry,” Dendy Borman, a board member at the International Spirit and Wine Association, told Reuters.

    And it could get even worse. Two extremist Islamic political parties want all liquor consumption in the country completely outlawed.

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  • UnionPay partners with Latitude19

    UnionPay partners with Latitude19

    Latitude19 Technology says its internet payment gateway is now registered with UnionPay Online Payment, a service for eCommerce transactions that enables UnionPay cards to be accepted over the internet with real-time transaction authorisation.

    The service brings the convenience of transacting over the internet to all Issuers, Acquirers, Merchants, and UnionPay cardholders in a simple and secure way, opening the way for holders of more than 5 billion UnionPay cards to shop online.

    Latitude 19 Technology CEO & founder, Timothy Moore said UnionPay registration is an important milestone in the company’s strategy to become the leading global offshore payment gateway.

    The deal makes Latitude19 the first provider for UnionPay in the Caribbean and Latin America.

    “Our partnership with the world’s largest card association, will fast track our growth and provide valuable solutions for our clients.”

    Latitude19 Technology’s UnionPay International credit card issuing program is based on a globally recognised platform that has been designed to rapidly launch and deploy new programs or expand existing programs in real-time versus taking months with other legacy platforms. It supports debit, credit, or emerging payment programs in plastic, virtual, or mobile form.

    Latitude19 Technology is a Cayman Islands-based secure, international, online payment gateway that offers competitively priced, custom credit card payment solutions for eCommerce merchants.

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  • AS Watson opens global flagship

    AS Watson opens global flagship

    AS Watson Group has opened its 12,000th store worldwide – in Hong Kong’s Causeway Bay.

    Perhaps fittingly, the store is a three-storey flagship, at 8000 sqft, the brand’s largest store in Hong Kong.

    Located on Yun Ping Rd, the new store features the latest Watsons store design concept internationally, a blend of “contemporary and elegant style”.

    “As an all-rounded health and beauty store, the flagship store provides customers with over 8300 unique products, including 840 healthcare and beauty brands of which 250 are Watsons exclusives,” the company said in a statement.

    The wide selection of products are categorised into different themes, such as organic skincare products, derma cosmetics, baby care area, men’s care area and health checks. Pharmaceutical and beauty consulting services, in-store nursery room and mobile charging stations are available to provide comprehensive customer services.

    At the store’s opening ceremony, Li Tzar Kuoi, Victor, the co-MD and deputy chairman of Watson’s parent CK Hutchison’s Group said Hong Kong has a special place in the company’s heart.

    “Last year, AS Watson Group opened and refitted 76 retail stores in Hong Kong; and for this year, the number is expected to amount to over 80. The capital investment involved would be approximately HK$620 million over these two years,” Li said.

    “We will continue to invest in the city. ”

    Founded back in 1941 as a small dispensary, the AS Watson Group was the 14th company to register in Hong Kong. Now it is the world’s largest international health and beauty retailer and one of the world’s fastest-growing retailers. Watson plans to open 1300 new stores around the world in 2015 – nearly three per day.

    Fortune Centre Watsons Hong Kong Flagship Store has the widest selection of natural & organic skin care products of nine international brands, including the Anumi, a well-known Australian brand with international organic certification, and American brand Burt’s Bees.

    Derma cosmetic products from 12 brands are on sale, including the French cosmetic brands Uriage and Filorga, which will have their exclusive counter, and Watsons’ exclusive brands such as Skin Advanced, CNP. Customers can also enjoy skin analysis and derma cosmetics consulting services.

    A wide range of cosmetic brands, including Clio, Luna and Peripera, etc, from Korea will be exclusively offered in this biggest cosmetic zone among all Watsons stores. Nail brands like Sally Hansen and Depend 7Day will also be available here. Customers can even enjoy makeup or manicure services.

    The Baby Zone offers a large variety of baby products, ranging from diapers, baby wipes, milk powders, etc, giving babies full care and protection. The Men’s Zone offers men’s grooming and health products selections of 14 brands, including Men’s Biore, L’Oréal Men Expert and Za Men, which is a Watson’s exclusive.

    As the Asia’s largest health and beauty retailer, Watsons aims to make customers ‘Look Good, Feel Great’. Nine professionals, including two pharmacists, one dispenser, three health and fitness advisors and three beauty consultants will station in-store to provide customers with professional health consulting and assessment services, such as the Ultrasound Bone Density test as well as measurements for blood pressure and BMI (Body Mass Index).

    The Flagship Store provides customer services such as free wireless internet access, mobile charging stations, baby nursing room, and washrooms.

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  • Pandora takes over Asia stores

    Pandora takes over Asia stores

    Resurgent mass market jewellery brand Pandora has chosen to take back its operations in three Asian markets.

    Singapore-based Norbreeze Group has been running the stores in Singapore, Macau and the Philippines. Pandora Group will take control from January 1, 2016.

    Norbreeze Group revealed it had finalised an agreement with the Pandora Group in a postscript to its announcement it was bringing the Joe and the Juice brand to Singapore later this year.

    January 1 is when the Norbreeze group’s distribution rights in the region will naturally expire, ensuring a smooth transition, the Singaporean company said.

    “It is a natural next step for us to hand off the highly-successful Pandora network that we have built across Southeast Asia, providing an established business built for durable success when The Pandora Group takes over the reins in the new year,” said Anders Peter Juel Sauerberg, Group CEO of Norbreeze.

    Norbreeze Group has more than 60 direct and indirect operated stores and distributes to more than 300 stores across Southeast Asia, and says it will continue to drive excellence in brand and operational development in integrated retailing, distribution and sales for its portfolio of international accessible luxury brands.

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  • Ron Johnson wins $50m for Enjoy concept

    Ron Johnson wins $50m for Enjoy concept

    Former Apple retail chief Ron Johnson’s new project has attracted a $50 million capital investment.

    His new venture, Enjoy Technology, is an online eCommerce start-up which sells a selected range of quality consumer electronics online only – then sends them to the purchaser’s home along with an expert in setting the equipment up. The concept merges service and customer focus with the convenience of shopping online.

    The $50 million was raised in series B funding led by Highland Capital. It comes on top of the initial $30 million and will be used to expand the concept outside its test markets of New York City and San Francisco Bay.

    “Since launching in May, we have been thrilled with the high-quality experiences we’ve been able to deliver for our customers, partners and employees,” said Johnson in a statement.

  • 361 Degrees sees fast recovery in China

    361 Degrees sees fast recovery in China

    Chinese sports brand 361 Degrees says its sales and gross margin improved in the first half year to June 30.

    361 Degrees, listed in Hong Kong, operates 7404 retail stores across Mainland China. It says store productivity continued to be a central theme in future profitability.

    “The current store count of outlets is not likely to increase substantially in the foreseeable future as the retail landscape is fast changing with a new generation of consumers adopting different buying habits,” the company said in its half year statement.

    “The group is very much attuned to these developments and has intensified efforts to promote various initiatives in internet and mobile sales. However, the days for the traditional bricks and mortar store are far from over and particularly in our case, where over 70 per cent of our outlets are in the tier-3 and smaller cities, strong local connections with schools and sports clubs are an inherent advantage, especially as increasing numbers turn to sport as a form of recreation and lifestyle.”

    The group reported its turnover improved by 5.7 per cent year on year, and by 22 per cent over the preceding six months, to register RMB2.2 billion. Gross margin gained a further 1.6 percentage points to 41.3 per cent on the back of lower material costs.

    Operating profit reached RMB485.5 million – 34.4 per cent higher than in 2014.

    Ding Wuhao, president and executive director, said 2015 promises to be “a very good year for the group” as the sportswear industry experiences a steady recovery and the 361 Degrees brand gains further acceptance in the market place.

    Footwear turnover rose 16 per cent as a new portfolio of performance products gained a positive reception from retailers. Apparel turnover fell 3.5 per cent because of a higher comparative base, which was boosted by late deliveries in the fourth quarter of 2013. 361° Kids continued to show growth momentum as it differentiated itself from the regional brands.

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