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  • Lend Lease wins Singapore bid

    Lend Lease wins Singapore bid

    Lend Lease has won a joint venture bid to buy a strategically significant plot of land in suburban Singapore on which it will build a mixed use development.

    The Australian property developer, which already has extensive interests in Singapore and neighbouring Malaysia, was the highest bidder in the government auction of a site at Paya Lebar Central. It owns 30 per cent of the JV with the balance owned by an unidentified international investment partner.

    According to a statement, the joint venture will pay S$1.672 billion (US$1.222 billion) for the site which has capacity for a development of about 165,000 sqm, including office, retail and residential / serviced apartment use. The site has direct connections to the Paya Lebar Mass Rapid Transit (MRT) Interchange that serves both the Circle and East-West lines.

    The award of the site is subject to the issue of the tender acceptance letter by the Urban Redevelopment Authority, who manages the Government land sales process.

    Lend Lease says the development will be funded by a combination of non-recourse, project level debt and equity.

    Lend Lease Group CEO and MD Steve McCann said the site offered a great opportunity for the company to continue its success in the region, leveraging Lend Lease’s global capabilities to develop large scale urban regeneration projects in major cities around the world.

    “It further cements Lend Lease’s position in the Singapore market and leverages its leading integrated property capabilities encompassing development, construction, investment management and asset and property management platforms.”

  • Korean online sales overtake stores

    Korean online sales overtake stores

    The total trade volume of online retailers for 2014 surpassed that of large retail stores and department stores for the first time, said Statistics Korea.

    Although the overall trade volume through Korean online retailers stood at 45.24 trillion won (US$ 41.62 billion), which is slightly lower than the 46.63 trillion won (US$ 42.90 billion) trade volume for offline retailers, sales through foreign online retailers in 2014 reached 1.66 trillion (US$ 1.54 billion), which resulted in combined overall online sales 46.90 trillion won (US$ 43.14 billion).

    The figures are due to aggressive marketing strategies from local online retailers to boost Korean online sales – such as G-Market, Auction, 11st Street and Interpark, and large growth rates for social commerce companies such as Ticket Monster, Coupang and Wemap. 11st Street, one of the most successful online shopping portals, saw its trade volume surpass 5 trillion won (US$ 4.6 billion) in 2013, six years after its launch.

    The total trade volume through department stores decreased 1.9 per cent to 29.23 trillion won (US$ 26.88 billion) compared to last year.

    Although department stores and large retailers have been trying to attract customers by holding sales and the improving quality the merchandise on their shelves, their sales have continued to decrease. Lotte, Hyundai and Shinsegae Department Stores saw their March sales decrease 1 per cent, 0.8 per cent and 1.3 per cent year-on-year.

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  • Uniqlo founder tops Japan’s rich list

    Uniqlo founder tops Japan’s rich list

    Retail mogul Tadashi Yanai has topped Forbes magazine’s list of the richest people in Japan.

    The Uniqlo founder is reported to have a net worth of US$21.1 billion.

    Last year, Yanai, 66, whose company Fast Retailing also owns a raft of other apparel brands including GU, was ranked second. But Forbes says soaring sales of his clothing empire have added $3.3 billion to his net worth.

    Last year’s list topper, internet pioneer Masayoshi Son, who owns Softbank, was displaced into second, his net worth now estimated at $13.9 billion.

    The nation’s richest family is that of Nobutada Saji, of beverage giant Suntory, with Saji himself ranking third and worth $10.9 billion.

    Hiroshi Mikitani, the founder of online retail powerhouse Rakuten, is ranked fourth at $10.5 billion. His fortune soared 36 per cent in the last year alone, partly due to acquisitions of US website Ebates and investment in Uber rival Lyft.

    The other retailer to make the top 10 is Masatoshi Ito, founder of the Ito-Yokado Group, parent of 7-Eleven, the Ito-Yokado supermarket chain, department stores, restaurants and speciality shops. His estimated worth is $3.8 billion.

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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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  • Taco Bell Japan makes comeback

    Taco Bell Japan makes comeback

    US fast food brand Taco Bell is to make a comeback in Japan.

    Restaurant chain operator Asrapport Dining Co has partnered with the Taco Bell brand’s parent Yum! Brands and will open the first store in Shibuya, Tokyo, on April 21.

    It will be the brand’s first outlet in Japan in more than 20 years.

    Taco Bell Japan will serve the staples of the US fast food menu – burritos, tacos and quesadillas, along with items unique to the Japanese market, to suit the local population: a shrimp and avocado burrito and something called ‘taco rice’.

    “Taco rice will be a plate of taco meat and vegetables served on top of rice,” a spokeswoman told Japanese media.

    An unspecified number of stores is planned, with a distinct layout including an open kitchen where customers can see food being prepared.

    A combination meal is likely to be priced at about ¥800 ($US6.70).

    Taco Bell originally entered Japan in the 1980s but its foray was short lived, its Mexican style cuisine failing to excite the Japanese palate.

    Some Taco Bell outlets operate in Japan within US military bases, inaccessible to the general public.

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  • Robinsons expands loyalty card program

    Robinsons expands loyalty card program

    Filipino retailer Robinsons Retail Holdings expects to boost the ranks of its loyalty program membership beyond 1 million by the year’s end after forging a new partneship with Caltex.

    Robinsons, the Philippines second largest retail group, says its Robinsons Rewards Card membership has grown rapidly throughout the last year to about 850,000 now. At the current growth rate, it is on track to reach the new milestone within this year.

    RRHI president and COO Robina Gokongwei-Pe said a new  partnership with Chevron Philippines (Caltex), will help build critical mass. It is the first non-Robinson retail brand to join the program.

    Robinsons Rewards Card holders can now earn points through purchasing fuel and other products at Caltex stations and points can be redeemed and used as a discount card to 21 Robinsons Retail brands as well as in Caltex stations nationwide.

    The other Robinsons Retail brands are Robinsons Department Store, Robinsons Supermarket, Robinsons Selections, Robinsons Easymart, Robinsons Appliances, Toys “R” Us, Handyman, True Value, AM Builders Depot, Daiso Japan, Topshop, Topman, Dorothy Perkinsm Miss Selfridge, Warehouse, River Island, Shana, G2000, Shiseido, and Benefit.

  • Fitness First Thailand to expand

    Fitness First Thailand to expand

    The UK-based chain operates 27 gyms, or ‘fitness clubs’ in Thailand already, part of a broad international network.

    The new gyms will be opened in at Crystal SB mall on Ratchaphruek Rd, AIA Capital Center, CentralPlaza Rama 2 and Crystal Park.

    In an interview with the Bangkok Post newspaper, Fitness First Thailand MD Mark Buchanan said the company would invest 1 billion baht (US$30.8 million) in opening the new stores and in developing a new digital communication tool to improve engagement with its membership base.

    He said the fitness industry was showing positive signs of growth in a subdued Thai economy.

    “Health-related businesses still have huge room to grow, because Thais are more health-conscious,” he said.

    Fitness First Thailand’s turnover grew by about 10 per cent in 2014 and it now has 66,000 members across Thailand.

    The Bangkok Post reports the the Thai fitness industry is worth US$155 million annually, with 200,000 people belonging to 480 gym operators across the nation.

  • Gelatissimo seeks new Malaysian partner

    Gelatissimo seeks new Malaysian partner

    Australian gelato chain Gelatissimo is searching for a new franchise partner in Malaysia – but says its expansion strategy in Asia and beyond remains on track.

    Gelatissimo’s sole store in Malaysia, at The Gardens mall in Mid Valley, closed late last year after the partnership proved less than successful, but Carlos Antonius, the company’s international franchise development manager, says it remains committed to Malaysia.

    “We are currently in the market for a new franchise partner to capitalise on the brand equity already developed in Malaysia,” he told InsideRetail.Asia by email.

    Meanwhile, Gelatissimo operates successfully in international markets of Singapore, the Kingdom of Saudi Arabia, Kuwait and the Philippines.

    “We are working collaboratively with our existing franchise partners to further develop our presence in these markets and are continually reviewing all aspects of our operations to drive the business forward,” said Antonius.

    “At the same time we are investigating additional market entry options into South East Asia and the Americas.”

    Gelatissimo launched in Australia with a concept store in 2002 and after quickly finding favour with customers, commenced franchising two years later.

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  • TWG success: like selling ice to Eskimos

    TWG success: like selling ice to Eskimos

    In just seven years, Singapore tea house chain TWG has expanded from a single cafe to a network of 44 spanning 15 countries. From three employees to 3000.

    In an interview with Channel NewsAsia for its Women at the Top series, TWG co-founder Maranda Barnes described her success as akin to selling ice to Eskimos: last year the company opened its first store in China, the world’s most populous nation of tea drinkers.

    Barnes had a background in luxury retailing prior to founding TWG, experience working with fragrances and high-end fashion brands preparing her well for marketing upmarket teas.

    “I knew about luxury packaging,” she told ChannelNews Asia. “I knew how you are supposed to talk about luxury products, how important the ceremony was and these small little details.”

    But she says it was still a challenge tackling Asian markets.

    “In the beginning, it was a bit of a scary challenge because it was like selling ice to the Eskimos. Here we are, coming from overseas to sell a product to Asia and the Asians are the connoisseurs of tea. But at the same time, I sometimes feel like it takes a foreigner to see the value and the beauty in a product that has become very mundane.”

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  • Johnny Rockets China plan signed off

    Johnny Rockets China plan signed off

    Johnny Rockets has signed the largest development deal in its history: for 100 restaurants in China.

    Johnny Rockets has entered into a partnership with a joint venture between AUM Hospitality and its parent Parkson Retail Group.  The first restaurant will open in 2016. AUM Hospitality is a multi-brand food and beverage developer and currently works as franchise partner and operator for Johnny Rockets in Malaysia.  Parkson Retail Group is a member of a conglomerate based in Malaysia and a department store operator with an extensive network of more than 130 stores, including over 60 in the China market.

    The same companies are partnering in the rollout of 1500 Quiznos sandwich stores across China.

    The initial plan is to open stores within Parkson department store complexes, which will also likely feature Quiznos and other food brands as Parkson builds a food-anchored retail concept in China.

    Scott Chorna, SVP of international development for Johnny Rockets, said AUM Hospitality’s success in the food and beverage industry and Parkson Retail Group’s proven track record in operating major retail outlets, made for an ideal partnership for his company’s Chinese entry.

    “Moreover, there is a strong demand in China for American brands as well as a growing middle class population with more spending power. Our partners have a keen sense of consumer preferences and shopping habits.

    “While they will be showcasing Johnny Rockets all American menu including our world famous made-to-order hamburgers and hand-spun shakes as well as our unique signature guest experience that includes dancing servers, they will also be able to offer regional tastes and flavors to our extensive menu items,” Chorna said.

    Johnny Rockets has already launched successful development partnerships in the Philippines, Malaysia, Korea and Indonesia.

    Johnny Rockets’ franchise partners currently operate more than 125 restaurants outside the US and the brand’s global strategy is to double that number by 2017.

  • M&S outperforms

    M&S outperforms

    M&S says its food sales grew in both total and like-for-like terms in the March quarter as it repositioned its offer.

    Its food division grew at a rate ahead of the total market, despite a “difficult and deflationary quarter for the food market”.

    CEO Mark Bolland said the company made “strong progress” during the quarter.

    “We continued to deliver on general merchandise gross margin and are pleased that we have achieved this whilst also improving general merchandise sales. M&S.com has returned to growth, as planned, with further improvement in customer metrics.”

    The company will release financials for the quarter – and the year – on May 20. But it says food sales rose 3.7 per cent overall and 0.7 per cent on a like for like basis. General merchandise sales rose 1.3 per cent, or 0.7 per cent like for like.

    Clothing sales were up 1.2 per cent and 0.6 per cent like for like. International sales at actual currency were down 6.3 per cent and total group sales were up 1.6 per cent.

    “Customers turned to us for special times of the year as well as everyday quality they can trust. We had a record Valentine’s Day and launched over 350 new products over the quarter. We continue to invest in price in order to stay competitive while protecting the gross margin,” said Bolland.

    Outside the UK, results were mixed. “Macro-economic issues particularly in our Russia, Ukraine and Turkey franchise partnership, coupled with further weakening in the Euro, have significantly impacted International second half profit,” the company’s statement said. But key priority markets such as India “continue to perform well”.

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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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  • Quiznos China plans 1500 stores

    Quiznos China plans 1500 stores

    US fast food chain Quiznos has revealed more details of its plan to roll out a massive 1500 strong network across China.

    Last October, Quiznos signed a deal with a subsidiary of Lion Group’s Parkson Retail Group to roll out 1500 stores across China.

    In the US the deal has been described as possibly the largest franchise deal in history, but the planned roll out does span a lengthy 15 year timeline – now a four year longer timeline than originally announced last year.

    The deal was originally launched with Malaysian company AUMH, which Parkson bought a stake in last year.

    “We are looking forward to paving the way for Quiznos in China,” said AUMH director Tham Lih Chung last year. “The brand’s long standing history of international accomplishments, combined with our knowledge of the region and culture, is sure to be met with success in China.”

    But this month, Quiznos International president Ken Cutshaw has revealed further details of the plan in an email interview with QSR magazine online.

    “To be the foundation of a China [food and beverage] group that has already established its successful roots in the China retail sector‎ is exciting for the Quiznos brand,” he said.

    Three Quiznos will open in Shanghai this year, then a further 100 in 2016. Parkson will then focus on the Shanghai market before expanding into other parts of China. With about 60 department stores in China, it shouldn’t find it too hard establishing an early foothold there.

    Cutshaw said he believes the scale of the Parkson partnership marks the most ambitious ever of a franchised food network, eclipsing the 1400-strong Dunkin’ Donuts deal of last year.

    Tham Lih Chung, a spokesman for The Lion Group, told QSR magazine Quiznos will do well in China because western brands are widely accepted there.

    Meanwhile, Cutshaw said Quiznos will continue its aggressive international expansion while its US operation restores its balance sheet (the US parent company was placed in Bankruptcy Protection a year ago).

    New stores are opening in Malaysia, Taiwan, Indonesia, Iraq, Pakistan and the United Arab Emirates.

    “Every successful global restaurant chain begins with a successful US foundation,” he said. “Quiznos is no exception. And Quiznos will continue to expand its presence both domestically and internationally with strong franchisees like The Lion Group of China.”

  • 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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  • L’Oreal posts slower growth in China

    L’Oreal posts slower growth in China

    L’OREAL, the world’s largest cosmetics group, said growth in China slowed to 7.7 percent last year from that of 10.2 percent in 2013, as consumption growth slowed in China and globally.

    The French company’s total sales in China were 14.3 billion yuan (US$2.28 billion) last year, as the country remained its the third-largest market.

    Globally, like-for-like sales was up 3.7 percent under fixed exchange rate to 22.5 billion euros.

    “Moderate growth in the fast moving consumer goods sector is becoming a normal situation under China’s new economic scenario,” said Jason Yu, general manager of Kantar Worldpanel China.

    “Beauty market growth is boosted by trading up from a more sophisticated group of consumers, and we’ve seen high-end product lines growing at a much faster pace than mass market products,” he added.

    Alexis Perakis-Valat, L’Oreal Group Executive vice president for Asia Pacific and CEO of L’Oreal China, said future growth would come from more tailor-made products for local consumers and geographical expansion into lower tier cities, especially for luxury product division.

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