Tag: Aeon

  • Silver consumers driving convenience push

    Silver consumers driving convenience push

    Look for more, but smaller, neighborhood stores, an increase in local delivery trucks and changing store layouts as retailers accommodate aging populations, says The Silver Series IV: Retail Reconfiguration for Seniors.

    The report is the latest in a series of analyses from Fung Global Retail & Technology on the impact of the growing 65-and-over population  – silver consumers – on global economies, industries and retail.

    With smaller households and appetites, seniors shop more frequently, but make smaller purchases, favoring the convenience store sector, the report says. The trend is already being seen in Europe, where large-format retailers such as Tesco and Carrefour are opening smaller stores. While this has yet to take place in the US, ignoring this population segment is unwise, as silvers are growing in number and driving a disproportionate amount of consumer spending.

    “The era of the silver generation has arrived,” writes Deborah Weinswig, MD of Fung Global Retail & Technology.

    The global population silver consumers – aged 65 and older – will account for over one-third of population growth through 2035, according to the United Nations, and will comprise more than 20 per cent of the population overall in Japan, South Korea, Western Europe, North America and China. These households tend to be wealthier, and in the US, senior households spend well above the national average on household supplies and books, though less on apparel and footwear, which could be due to limited choice.

    Long thought to be the province of the young and tech savvy, eCommerce also is a growth market for seniors, who will enjoy or require the convenience of home delivery.

    Not all stores and product manufacturers are accommodating silvers’ changing needs. Seniors can find large-format stores and regional malls overwhelming, and product packaging may need to be redesigned in order to make it easier for seniors to read and open, Weinswig notes.

    But some retailers around the globe are adapting. Japan’s Lawson convenience store chain has renovated units in areas with a high concentration of silvers, widening aisles, lowering shelves and stocking more products that appeal to older shoppers. The 7-Eleven chain in Japan offers a meal delivery service to seniors, while the Aeon Mall offers medical facilities, leisure activities, a concierge and other services for its senior shoppers. Supermarket chains in Germany and Austria have widened aisles, provided customised shopping carts and added nonskid flooring, while in the US, drugstores CVS and Walgreens are adapting store layouts to minimise high- and low-shelving, and have carpeted floors in some stores and even added magnifying lenses to shelves so shoppers can read labels with small print more easily.

    “It is no coincidence that Japan, which is well ahead of most countries in terms of the aging of its population, has a major convenience store sector,” Weinswig writes. “We are now seeing other markets follow Japan in a convenience boom: in France and the UK, for instance, major retailers are pushing into the format as the segment outpaces the wider grocery market.”

    The full report can be found here.

  • Aeon to accelerate Myanmar supermarket business

    Aeon to accelerate Myanmar supermarket business

    Aeon will open new supermarkets in Myanmar at a faster clip over the next five years, according to business plans announced Monday, with shopping centers also under consideration.

    The Japanese retail group recently established supermarket chain Aeon Orange, a joint venture with Creation Myanmar Group of Companies. The 14 supermarkets purchased from CMGC will be renovated, and the first new Aeon Orange store is to open within the year. Openings will rise to 10 new stores annually after five years.

    The Aeon Orange markets will be roughly 1,000 sq. meters. But for urban areas, smaller stores of 100 sq. meters to 500 sq. meters will open on an experimental basis. The supermarket operator will source items by tapping CMGC’s more than 600 business partners and Aeon’s procurement system established in Thailand.

    Aeon President Motoya Okada also said that “opening up shopping centers is vital” for the future, expressing interest in capitalizing on the company’s biggest strengths.

    “We cannot delay in such a high-potential market,” Okada said, hinting at plans to open a large-scale shopping center in Myanmar like those Aeon operates in Japan and other countries. The company will keep a close eye on changes to restrictions for foreign investment.

    Aeon’s international business segment slumped during the year ended in February with an operating loss of 2.4 billion yen ($23.4 million). A slowdown in Malaysia, one of Aeon’s largest overseas markets, is deemed responsible and increased the urgency to develop a profitable new market.

  • Aeon Myanmar launched with acquisition

    Aeon Myanmar launched with acquisition

    Japanese grocery and mall giant Aeon is expanding its Asian footprint yet further, acquiring a 14-store supermarket chain in Myanmar.

    The Aeon Myanmar operation will be run by a new company, Aeon Orange, which has acquired the supermarket chain from Hypermarket Asia, one of the affiliate companies of Creation Myanmar Group.

    At the same time, the newly established company is preparing to open its first supermarket in Myanmar before year end.

    Aeon says that the economic liberalisation after transition to a civilian government, has seen

    Myanmar’s retail industry modernise, and the ranks of the nation’s middle class are growing.

    “With the population of 53 million people, the real economic growth rate in the country is 8.3 per cent – dramatic growth exceeding the average rate among five developed nations in ASEAN countries,” Aeon said in a statement.

    CMG’s 14 supermarkets are mainly in Yangon, Myanmar’s largest city, and it also holds more than 20 overseas brand sales licenses including Adidas and Mango operating some 130 stores.

    The launch of the Aeon Myanmar business follows successful forays into China, Thailand, Vietnam and Cambodia as the Japanese retailer looks for growth internationally to offset declining sales in its home market which is suffering from a falling population.

    “In order to develop business in a speedy manner in this fast growing Myanmar market, Aeon believes that cooperation with CMG is indispensable, as it has the retail business infrastructure in the country and is also familiar with the customer needs which differ from region to region,” the company said.

    Aeon will learn the customer needs in the region and the know-how of community-based

    product procurement, while offering Aeon’s private brand “Topvalu,” the global sourcing

    through utilising the group’s comprehensive multinational strength and quality control to assure “safety and security,” and bring logistics, IT, and human resource development to CMG.

  • Thailand’s Central declares $89.6 mln tax on Big C Vietnam deal

    Thailand’s Central declares $89.6 mln tax on Big C Vietnam deal

    Thai retail giant Central Group has declared around VND2 trillion (US$89.6 million) in tax on its acquisition of Vietnam’s biggest foreign-owned supermarket chain Big C, local media reported.

    Big C Vietnam, which declared the tax on behalf of its new owner, has paid VND380 billion ($17.03 million) of the amount, Tuoi Tre newspaper said on Monday, citing an unnamed source from the Ministry of Finance. The rest is expected to be collected later.

    The source did not comment on why the sum was much lower than the official estimate of VND3.6 trillion ($159 million) by the ministry’s General Department of Taxation.

    In June the department sent letters to Central Group and France’s Casino Group, the chain’s former owner, demanding them to pay tax on the $1.04 billion deal and threatening to block the ownership transfer.

    It reportedly said in the letters that the companies were far behind their tax obligation. According to the department, Vietnam’s laws stipulate that businesses have 10 days to pay taxes on the sale of their holdings after their negotiation is completed. The Big C deal was made public on April 29.

    At the end of last month, the tax authority reminded the companies of the tax again, saying they will be fined 0.05-0.07 percent per day for late payment.

    Big C is the largest foreign-owned retail chain in Vietnam with 33 supermarkets and 11 convenience stores. Many big players such as Vietnam’s largest retailer Co.op Mart, Japan’s Aeon, Thailand’s TCC and South Korea’s Lotte were interested when Casino announced its sale plan at the end of last year.

    Vietnamese electronics retailer Nguyen Kim, 49 percent owned by Central Group, also joined the Thai conglomerate in the acquisition of Big C. Their respective stakes have not been disclosed.

  • AEON Brings Exclusive Privileges and Unbeatable Promotions

    AEON Brings Exclusive Privileges and Unbeatable Promotions

    AEON Thana Sinsap (Thailand) Public Company Limited line up the financial services and exclusive privileges             that cover consumer needs at the 10th Money Expo Korat 2016 including Personal loan, Your Cash, AEON credit cards and membership cards application service. AEON customers who make financial transactions in the expo will get a chance to win a 1-Baht gold necklace and other various premium such as John Lang Ford Bag and                     AEON umbrella. Moreover, AEON consumer who has the financial transaction of every 20,000 baht will receive Big C gift voucher valued at 200 – 2,000 Baht maximum. Additionally, AEON is offering a special interest 0% installment on gold.

    Customers can enjoy other plenty of activities and mini concert featuring a host of popular celebrities including Typhoon – KPN and Tom – Room 39. The 10th Money Expo Korat 2016 will be held on 5th – 7th August 2016                at AEON’s booth A7, The MCC Hall, The Mall Korat. For more information, please visit www.aeon.co.th.

  • Thailand retail growth predicted at 6%

    Thailand retail growth predicted at 6%

    Thailand’s retail market is expected to grow at a compound annual growth rate (CAGR) of more than 6 per cent from now until 2020.

    This was revealed in the latest market study by global technology research and advisory company Technavio.

    Its research report, Thailand Retail Market 2016-2020, offers an analysis of the market in terms of revenue and emerging trends, as well as forecasts for six major product segments – grocery, apparel and footwear, beauty and personal care, personal accessories, home and garden, and consumer electronics.

    Grocery

    Valued at US$103 billion last year, the grocery market in Thailand is forecast to reach $145 billion by 2020, growing at a CAGR of 6.92 per cent. The segment is largely driven by the modern retail sector, while increasing urbanisation and changing consumer lifestyles are playing a significant role in the market’s development.

    Supermarkets and convenience stores have shown the fastest year-on-year growth rates with 9.5 and 10.5 per cent respectively last year.

    “Even though hypermarkets offer attractive prices, consumers are increasingly preferring supermarkets for the convenience factor and the availability of a wide product range,” says Technavio lead retail goods expert Poonam Saini. “Unlike supermarkets, which are in urban zones, hypermarkets are generally in bordering areas, catering almost exclusively to nearby consumers.”

    Apparel and footwear

    The second-largest market segment last year, apparel and footwear is expected to reach $9.19 billion by 2020, growing at a CAGR of more than 3 per cent.

    Several foreign companies are competing with local companies in the segment, says the report. International brands have fair penetration rates, offering stylish designs and a wide product range through modern retail stores. Local brands have also been successful with their long-established presence along with customer loyalty and trust.

    “The popularity of the online channel is growing, and players are actively using social media sites such as Facebook and Instagram for promotional campaigns and marketing activities,” says Poonam.

    “Websites such as Zalora.com are becoming popular for apparel and footwear products, as these sites offer promotions and discounts.”

    Beauty and personal care

    One of the fastest-growing segments, beauty and personal care (BPC) is having more than 3 per cent CAGR and is expected to reach $5.53 billion by 2020. A continuous exposure to western beauty and grooming trends has helped maintain the growth of the market over the past few years.

    International BPC companies have a nearly 50 per cent share of the market, with comprehensive product portfolios and innovative products. Thai retailers are expanding and attracting new consumers, says the report, citing cosmetics brand Sephora, which opened two new stores in 2014 after entering the market late the previous year.

    Top vendors

    Technavio’s research analysts name five top vendors for Thailand in the report.

    Topping the list are supermarket Big C and retail conglomerate Central Group. Then follow CP All, which has a chain of 7-Eleven stores, and homewares stores Global House and Home.

    Other prominent vendors in the market are Adidas, Aeon, Isetan Mitsukoshi Holdings, Lazada, Nike, Sephora, Seven & I Holdings, Tesco, The Mall Group and WearYouWant.

    Technavio develops more than 2000 reports every year, covering more than 500 technologies across 80 countries. It has about 300 analysts globally.

  • Aeon Indonesia dumps Ministop c-store partner

    Aeon Indonesia dumps Ministop c-store partner

    Aeon Indonesia has ended its partnership with its local partner in the Ministop c-store chain.

    The move will result in Aeon exiting the market temporarily while it seeks a new business partner.

    According to local media reports, Aeon teamed with Bahagia Niaga Lestari (BNL) in 2012. But after four years, the joint venture has managed to open just six stores.

    Aeon has meanwhile been expanding its Ministop network across Vietnam, the Philippines and South Korea.

    Aeon says it is committed to Indonesia and hopes to form a new joint venture.

  • Bio c’ Bon Japon JV to boost organics

    Bio c’ Bon Japon JV to boost organics

    Japanese supermarket giant Aeon has set up a joint venture with a European company to establish an organic supermarket in Japan, to be called Bio c’ Bon Japon.

    Bio c’ Bon, an affiliated company of business investment firm Marne & Finance Europe, runs a specialty organic supermarket business in Europe, mainly in France. Its headquarters are in Paris.

    The joint venture aims to lead the expansion of an organic market in Japan through specialty supermarkets.

    Across the world, the organic market is growing at 15 per cent or more a year, especially in France where the annual sales of organic products reach about US$5.241 million. It is the third-biggest market in the world following America and Germany. Japan ranks seventh with annual sales of about 143.1 billion yen ($1308.85 million).

    Established in 2008, Bio c’ Bon has 90 organic supermarkets in Paris, and as well as France is also expanding in Milan and Madrid.

    Since the organic Japanese Agricultural Standard (JAS) system was introduced in 2000, Aeon has been working on expanding the organic market in Japan in co-operation with public organisations and producers, and has offered Japan’s first certified organic products.

  • AEON Showcase Their Product Line-Up and Other Financial Services at the 16th Money Expo Bangkok

    AEON Showcase Their Product Line-Up and Other Financial Services at the 16th Money Expo Bangkok

    AEON Thana Sinsap (Thailand) Public Company Limited will join the 16th Money Expo Bangkok from May 12th to 15th 2016 at Challenger Hall 2 – 3 , Impact Arena, Muang Thong Thani. AEON’s booth, B1, is inspired by the concept “Your Future Begins Today” with the beautifully laid out on the 850 square meters spread.

    At the expo, AEON line up their various financial services including the AEON M GEN VISA Card which aims to offer the special entertainment privileges to match with customers’ lifestyle such as free movie ticket every month, exclusive discounts for M GEN Set at THB 120 and M GEN Buddy Combo set at THB 99. Moreover, AEON introduces the AEON Royal Orchid Plus JCB Platinum Card exclusively for Japan lovers which exchange every THB 20 spending to 1 mileage as well as access to our exclusive lounge and discounts to many Japanese restaurants. Exclusively for AEON customer who subscribe to any service with AEON, they will get a chance to win the luxurious 3 days and 2 nights accommodation package from Sri Panwa valued at THB 112,800 as well as iPhone 6s 64 GB valued at THB 30,700 , John Lang Ford bag valued at THB 1,290 and other various premium.

    AEON customer will also enjoy other exclusive deals such as special interest 0% installment on the Honda motorcycle or gold, special tour packages from H.I.S and insurance services. They will also be entertained with a special mini concert from Bie Sukrit, Wier Sukollawat and Kang Vorakorn. For more information, visit www.aeon.co.th.

  • AEON partners with Major Cineplex Group  to Enjoy Favorite Flicks and Free Snack

    AEON partners with Major Cineplex Group to Enjoy Favorite Flicks and Free Snack

    Mrs. Waraporn Nilpanich (Left), Assistant Vice President – Credit Card at AEON Thana Sinsap (Thailand) Public Company Limited and Mr. Niti Pattanapakdee (Right), Chief Media Officer of Major Cineplex Group Public Co., Ltd., announced the special joint promotion exclusively for AEON Royal Orchid Plus Platinum, AEON Gold and AEON Classic credit cardholders. With every movie tickets purchased, members can enjoy   a free Small Combo Set (22 Oz. drink and 46 Oz. popcorn) for the first 100 members per branch. The promotion is exclusive to Quatier Cineart and all Major Cineplex theaters on April 30th only.

    For more information about AEON activities, please visit www.aeon.co.th

     

  • Jucker votes for Big C buy

    Berli Jucker shareholders have voted in favour of the US$6.2 billion acquisition of a majority stake in Big C Thailand.

    The vote – virtually unanimous – followed news the listed company had secured funding for the purchase from a syndicate of 15 banks and means the deal is now all but complete. Settlement is expected late this month.

    But while the future of Big C Thailand now appears to be resolved, negotiations continue over the fate of Big C Vietnam, a smaller, less profitable business controlled by France-based Casino Group, which is shedding overseas assets to reduce its debt exposure.

    Casino has a 58.6 per cent controlling interest in Big C Thailand, which Berli Jucker will now acquire.

    In Vietnam, Thai tycoon Charoan Sirivadhanabhakdi, through another business, has recently purchased the Metro hypermarket business from Metro AG of Germany, to bolt on to Berli Jucker’s B’Smart convenience store network.

    Charoan was thus a favourite to acquire the Big C Vietnam operations to build even greater critical mass, and lodged a bid prior to the first round deadline with his soon to be Big C Thailand partner, Central Group.

    But sources within Asia’s business community are now confident Korea’s Lotte and Japan’s Aeon are frontrunners. Lotte runs the market leading Lotte Mart hypermarket business in Vietnam and would gain a significant foothold in the nation if it could secure Big C as well.

    Aeon, which is building shopping centres in Vietnam main cities, reportedly submitted an offer that valued the business at more than US$800 million according to sources quoted in Vietnam media.

    Lotte also submitted a bid prior to the first round deadline.

    Casino has declined comment on the Vietnam sale other than to say it was “progressing well” when it reacted to ratings agency Standard & Poor’s decision to cut its credit rating to junk status  on Monday

  • Inside Bonia Selangor

    Inside Bonia Selangor

    Malaysia-listed luxury fashion retailer Bonia has opened a new generation boutique in its home market.

    The new store is on the ground floor of the Aeon Seksyen 13 Shah Alam shopping complex in Selangor.

    Bonia - Aeon Shah Alam Selangor Malaysia 2

    As the accompanying images released by the brand on Facebook show, the store has a distinctly curved facade and something of a ‘maison’ feel. It is thus similar to the style used by luxury European brands, with stock clustered by category in precincts, but not quite rooms.

    Bonia - Aeon Shah Alam Selangor Malaysia 3

     

    Stock is sparsely laid out to make the core leather goods ranges the hero of the displays, augmented by the brand’s apparel offer.

    Bonia - Aeon Shah Alam Selangor Malaysia 4

    Bonia Group has more than 700 sales outlets and 70 boutiques across Asia specialising in leatherwear, footwear and accessories.

    Bonia - Aeon Shah Alam Selangor Malaysia 1

     

    Altogether it has a network of more than 1200 sales outlets and 170 standalone boutiques throughout the world, including countries such as Brunei, Cambodia, China, Indonesia, Japan, Malaysia, Myanmar, Singapore, Thailand, Taiwan and Vietnam.

  • Aeon Japan shortens opening hours

    Aeon Japan shortens opening hours

    Japanese retail giant Aeon is chopping back opening hours at most of its Tokyo-area general merchandise stores, seeking more efficiency in the face of staff shortages and competition with convenience stores pushing up costs.

    The opening time at Aeon Japan stores will move from 7am to 8am for grocery sections at 42 of the company’s 64 general merchandise stores in the Tokyo, Chiba and Kanagawa prefectures under brands including Aeon and Aeon Style. Some stores will remain open 24 hours.

    Aeon began opening many of its stores at 7am in summer 2012. Company and local-government policies designed to take advantage of daylight hours following the March 2011 earthquake and tsunami resulted in more people being out and about in the early morning, which was a benefit for businesses. Aeon decided to keep the new hours year-round, and while shoppers in regions such as Japan’s north-east, most affected by the disaster, have continued to support the earlier opening times, Tokyo-area stores have found it hard to retain morning traffic.

    Competition from rapidly expanding convenience stores and small-scale supermarkets is partly to blame. Japan had about 56,000 convenience stores in the year ended last March, about 20 per cent more than before the earthquake. These stores have been growing their fresh- and prepared-food offerings to rope in demand from the elderly, homemakers and other customers, generating more than 10 trillion yen (US$89.7 billion) in sales during the 2014 fiscal year.

    Small grocery stores, such as Aeon’s own My Basket, have also been expanding.
    Staff shortages have also hit Aeon, making early-morning and late-night hours a practical challenge as well as driving up personnel costs.
    General retailers are also losing out to eCommerce, which is worth more than 12 trillion yen in Japan alone.

  • Asian retail giants mull Big C bids

    Asian retail giants mull Big C bids

    At least three major Asian retailers are mulling bids for control of the Big C businesses in Thailand and Vietnam.

    But they all start as rank outsiders behind Thailand’s Central Group, which already has a 25 per cent share of the Thai Big C business.

    In a surprise move, France’s Casino group announced earlier this month it would sell its 58.6 per cent stake in the Thai hypermarket business in a bid to reduce debt. It had already put its struggling Vietnam business on the market in December.

    Reuters reports Hong Kong headquartered Dairy Farm International and Korea’s Lotte are in talks with their bankers about potential bids. Japan’s Aeon is also running the numbers.

    But as Reuters says, all three would need “punchy bids” to fight off frontrunner, Thailand’s Central Group.

    Casino Group will sell both businesses in an auction process – and has indicated it would prefer to sell the two operations to a single buyer.

    With a cornerstone stake in the Big C operation, Central would have to be frontrunner to secure Casino Group’s share. The company has already publicly declared its interest.

    “Whoever is going to buy this will have to pay a high price to get Central out or they will have to co-exist,” Reuters quoted an unnamed banking source “familiar with the matter”.

    The Thai stake is estimated to be worth about US$3.1 billion. The value of the Vietnam operation is less clear – bankers put it at between $800 million and $1 billion, although the business is not thought to be particularly profitable, despite recent media commentary to the contrary.

    Aeon, Lotte and Dairy Farm all declined to comment on the matter.

  • Index Living Mall plans ASEAN expansion

    Index Living Mall plans ASEAN expansion

    Home-furnishing retailer Index Living Mall has announced its 2020 vision to continue its push beyond Thailand into other ASEAN countries.

    With franchised stores already trading in Malaysia, Thailand and Vietnam, the company believes the region’s urbanisation has shifted consumers toward a more modern lifestyle, including the way they buy and use home-furnishing products. It also notes a rise in the number of middle-income earners throughout the ASEAN Economic Community.

    MD Kridchanok Patamasatayasonthi says the company aims to double the present 5 per cent contribution to its total revenue from AEC markets by 2020. The company’s total revenue of Bt9.5 billion (US$264.8 million) last year was 5 per cent up on 2014.

    “Our market expansion through international franchisees is the result of growth in the home-furnishing and accessories sectors among ASEAN member countries,” says Kridchanok. “Other positive factors, including the bustling economic outlook, rising gross incomes and similar customer behaviour, helped accelerate our decision to look for investment opportunities in new markets.”

    She says the company has appointed VinDS, the retail investment arm of Vietnamese commercial property developer Vingroup, as its franchisee to tap into the home-furnishing and accessories retail market in that country. The first Index Living Mall under that partnership had a soft opening last month in Ho Chi Minh City, occupying 7000 sqm in Vincom Mega Mall Thao Dien. Costing more than Bt200 million, the store is expected to achieve Bt350 million in sales in its first year.

    Index Living Mall has had a store trading in Ho Chi Minh for more than four years, effectively testing the market. Now with VinDS it expects to open 10 more stores in major cities in Vietnam, including Ho Chi Minh, Hanoi and Da Nang, within five years.

    “Economic growth indicators show that the Vietnamese retail market is number two in Asia, after only China,” says Kridchanok.

    “During the first half of last year, the Vietnamese economy posted 6.28 per cent growth, the highest since 2008. With a population of 90 million, this will continue to grow, thanks to per capita income rising more than 10 per cent over the past decade.”

    Kridchanok says it is expected that the number of Vietnamese earning a median income of 15 million dong ($673) a month will grow to 33 million by 2020.

    Index Living Mall’s director for international business development Ekaridhi Patamasatayasonthi says the company’s venture into Vietnam highlights its marketing direction to tap into emerging CLMV (Cambodia, Laos, Myanmar and Vietnam) markets, aimed at strengthening its leadership position in the home-furnishings and accessories retail market in the ASEAN region.

    Ekaridhi says the company plans to open store in Manila in September via a joint venture with SM Retail, a Philippine business conglomerate involved in shopping mall, property development, banking and retailing. Index Living Mall has a 30 per cent stake in the venture.

    In Malaysia, Index Living Mall opened its first home-furnishing store in Putrajaya last year in a joint venture with AEON. Three more stores are planned for Malaysia this year – in Kuala Lumpur in March, Kota Bharu in April and Johor Bahru in the fourth quarter.

    Ekaridhi says there are six franchised stores in five countries – Malaysia, Russia, Maldives, Nepal and Vietnam – as well as dealers in Laos and Myanmar. In its home country, the company has 25 stores in 17 provinces, of which nine are in Bangkok. It plans to invest Bt470 million this year to open two stores, in Nakhon Pathom and Chachoengsao.

    Index Living Mall expects to post Bt10 billion in revenue this year and to grow its annual sales by 10 per cent over the next five years.