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Tag: Central

  • Thai giant Central Retail plans US$3 billion investment in expansion

    Thai giant Central Retail plans US$3 billion investment in expansion

    Thailand’s Central Retail Corp. plans to invest 100 billion baht ($3 billion) over the next five years in a bid to become a top Asian retailer and more than double its revenue and profit.

    The new investment will help Central Retail grow its revenue by 2.5 times, earnings before interest, taxes, depreciation and amortization by 3.5 times, and propel its market capitalization by 2.5 times by 2026, according to Chief Executive Officer Yol Phokasub. Thailand’s largest retailer will invest in new digital technologies to expand omnichannel platforms in all its business segments and scout for acquisitions, he said.

    Central Retail is controlled by the Chirathivat family, which owns a host of industries from real estate and retailing to hospitality and restaurants. The Central Group in December agreed to buy British department store operator, Selfridges in a joint venture with Austria’s Signa Holding for $5.4 billion, expanding the group’s overseas portfolio.

    Digital technology will play a greater role in Central Retail’s new growth strategy after it saw online sales boom during the pandemic, Yol said. “By delivering experiences that merge online and offline worlds” Central Retail expects to boost the business of its more than 3,600 branded stores, he said.

    “We have already surpassed pre-Covid sales in 2021, and this is without tourists. Once tourists return, any sales we make will only be a bonus,” Yol said, adding the company will look to leverage new technologies across all its businesses in Thailand, Vietnam and Italy to boost sales.

    Shares of Central Retail have rallied almost 16% this year on expectations that easing Thai Covid restrictions and reopening of borders to foreign tourists will help it return to profit. The company reported a net loss of 2.3 billion baht for the nine months ended Sept. 30, more than double from a year earlier. It’s yet to report full-year earnings for last year.

  • Central Retail sales rebound to 90 per cent of pre-Covid levels

    Central Retail sales rebound to 90 per cent of pre-Covid levels

    Thai group Central Retail says it achieved 90 percent of its pre-Covid sales performance in the March quarter, the result of what CEO Yol Phokasub described as “thriving on steadily regaining balance” during a time of challenges and uncertainties”.

    First-quarter sales were down 9.7 percent to US$1.56 billion, however, net profit was down 48.4 percent to $14.65 million.

    In a statement, the company said that considering the semi-lockdown situation resulting from the second and third waves of the pandemic – when most businesses stopped trading – the impact on the retail market was more severe than the previous year.

    Phokasub said the company was able to take advantage of a broad portfolio of retail brands which enabled business agility during the Covid crisis, including synergy between the Central and Robinson department stores. It also benefited from the expansion of the Tops Market both within Thailand and in Vietnam, its Go! Malls concept in Vietnam and the recent acquisition of the B2B omnichannel books and stationery business.

    He said that during the year ahead Central Retail plans to increase work efficiency and productivity through technological development and strong cash flow while looking for new business ventures to diversify its portfolio.

    “Central Retail’s long-term vision and business plan before the Covid-19 pandemic remain unchanged, and that is to achieve sustainable and profitable growth.”

  • Central Retail Vietnam revenues surpass US$1.1 billion after rapid expansion

    Central Retail Vietnam revenues surpass US$1.1 billion after rapid expansion

    Thai retail conglomerate Central Group plans to cover 90 percent of Vietnam’s provinces within five years via subsidiary Central Retail.

    Central launched in Vietnam in 2012, initially with fashion merchandising before taking stakes in local electrical appliance chain Nguyen Kim (which it now owns 81.5 percent of) and Lanchi Mart supermarket in 2015.

    As of last month, Central Retail Vietnam operates 35 malls (most anchored by Big C hypermarkets) and 230 stores across 39 out of the nation’s 63 provinces. It is the largest multinational retail company operating in Vietnam with a customer base of about 12 million and revenues of US$1.17 billion last year. The country already accounts for about 20 percent of the parent company’s sales.

    The company’s new Go! brand already encompasses 32 hypermarkets (Hyper Go!) and seven supermarkets (Super Go!). Six more Go! hypermarkets are scheduled for Tra Vinh, Quang Ngai, Buon Ma Thuot, Ben Tre, Ba Ria, and Thai Nguyen, while four more Big C stores will soon be rebranded to Go!”

    Central Retail Vietnam CEO Philippe Jean Broianigo says Central Retail will continue to focus on growth via outlet expansion.

    The company is bullish about its prospects in Vietnam which recorded 3.82-per-cent economic growth in the first quarter of this year despite a four-week shutdown of most retail from late March. No community transmission of Covid-19 has been recorded since April 16.

    The plan includes technology and omnichannel platform developments and achieving business synergies with leading partners such as Grab and GrabMart to launch delivery services for customers.

    “Central Retail will have a full multi-format platform that can seamlessly reach customers via offline and online channels,” said Broianigo.

    Central Retail CEO Yol Phokasub said the company is “constantly seeking expansion” and will continue to invest in Vietnam because it foresees the size of the potential.

    “By staying true to our vision, we will drive the country’s prosperity simultaneously with improving the quality of life of Vietnamese people.”

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  • Central Food Hall employs robot in coronavirus fight

    Central Food Hall employs robot in coronavirus fight

    Thai supermarket Central Food Hall has begun using UV-C Disinfection Robots to sterilize stores in a move to combat coronavirus transmission.

    The firm is the first supermarket in the region to implement disinfection robots, certified by the WHO and CDC to sanitize areas around 360 degrees to destroy more than 99.99 percent of all pathogens within seconds.

    The robot is currently being deployed at Central Food Hall Central Chidlom while the store is closed. Plans are afoot to introduce robots at other Tops Market and Central Food Hall branches in the interests of employee and customer safety.

    UV-C light is considered to be without harmful side effects on the food and products in the store. The technology has been in use for more than three years in Thai hospitals, factories, companies, hotels, schools and other places that need effective disinfection.

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  • Thailand’s Central Pattana to waive the rent for retailers

    Thailand’s Central Pattana to waive the rent for retailers

    Thai retail property developer Central Pattana is to waive rent for tenants affected by the government’s shutdown order.

    The company said in a statement that it will waive the rent for tenants who have been ordered to shut by authorities and offer rent reductions ranging from 10 percent to 50 percent for stores that remain open.

    “We are confident that with complete cooperation from all parties we will overcome this challenge together,” said Precha Ekkunakul, president and CEO of Central Pattana. “We are ready to support every business to resume its normal operations and to help coordinate government aids for all sectors who have been affected during this crisis.”

    The company has also organized call centers, pick-up counters and drive-through pickup points to support its food-and-beverage partners and customers.

    Central Pattana said it plans to adjust its upcoming projects and is working on a plan to resume business operations after the crisis is resolved, in order to ensure its growth and return shareholders’ investment.

    Central Pattana has temporarily closed all of its 15 shopping centers in Bangkok and 13 out of 18 shopping centers in the provinces. Essential services including supermarkets, pharmacies and convenience stores remain open during the closure.

  • Thailand’s Central Retail Group confirms IPO launch

    Thailand’s Central Retail Group confirms IPO launch

    Central Group subsidiary Central Retail Corporation, aims to raise up to THB81.1 billion (US$2.7 billion) in an initial public offering (IPO), which will be Thailand’s largest yet.

    Central Retail’s IPO price will range between THB40 to 48 per share. The company will sell up to 22.1 per cent of its stock or 1.69 billion shares with an overallotment option of 169 million shares. Investors can subscribe from February 6.

    Central Retail’s planned offering would be Thailand’s largest on record ahead of the BTS Rail Mass Transit Growth Fund, which raised US$2.1 billion in 2013.

    Funds raised will be used to expand its domestic and international businesses and to pay off debt, according to a spokesperson.

    As part of its listing plans, Central Group will delist its retail subsidiary Robinson PCL and offer a share swap to Robinson’s existing shareholders with no cash alternatives. The share swap will start in late January.

    Central Retail achieved sales of $3.46 billion in the six months to June. Some 43 per cent of that came via its food business, 34 per cent from fashion and the remainder from hardware.

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  • Sephora Hong Kong Reopening Soon

    Sephora Hong Kong Reopening Soon

    Makeup superstore Sephora has confirmed its widely anticipated return to Hong Kong in physical store form.

    The LVMH-owned cosmetics retailer will sublease a 4000sqft space in the Zara store at IFC Mall in Central, nine years after it closed its last store in the territory.

    Despite its physical absence in the market, Sephora Hong Kong has continued to sell products online to loyal customers.

    The last Sephora Hong Kong store traded for just two years in Mong Kok, closing in 2010. At the time, retail commentators said the brand failed due to poor store location, lacklustre marketing and high rents.

    Sephora is popular in Mainland China and has stores across Southeast Asia trading profitably, especially in Singapore and Malaysia.

    According to news reports in Chinese media, Sephora has subleased the space from Zara for HK$2 million (US$254,800) per month.

  • YSL opens pop-up store to celebrates Valentine’s Day

    YSL opens pop-up store to celebrates Valentine’s Day

    YSL launched a limited store for Valentine’s Day 2019 in Central, Hong Kong, featuring on WhatsApp sticker, photo booth, and games. Obviously, pink and cosmetics are many girls’ favourite. So pink lovers will fall in love with YSL latest limited pop-up store in Central as the store is fully decorated in pink. Not only visitors will have the opportunity to get the cosmetics products, but they will also be able to take Instagrammable photos in front of different props and beautiful background.

    To participate in this event, visitor only need to register online to get a designated QR code and go during the reserved time slot. In addition to taking pretty pictures, visitors can also try YSL new collection of perfumes, blush, and lipsticks.

    One of the most attractive activities is to tailor-made unique WhatsApp stickers.

    In addition, making WhatsApp stickers, printing photos or buying any products in the pop-up provides points for playing the YSL’s clip doll machine. The higher the points, the more opportunities, so you can clip away YSL cosmetics products and take them home.

    The pop-up closes its doors just after Valentine’s Day.

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  • The most expensive place to rent an office in the world

    The most expensive place to rent an office in the world

    Central, Hong Kong’s frenetic business and retail heart, crammed with skyscrapers, swanky malls and luxury hotels, is the most expensive district for renting office around the world. Although the office rent in Hong Kong’s Central district is already the world’s most expensive, and there are more and more companies moving out of the city centre to cheaper locations, prices are likely to remain sky high, or even higher.

    Hong Kong is the key financial centre in Asia, and Central is still the most important financial district in the city. Thus, the office rent in Central district is predicted to increase continuously.

    According to Raymond Chow, the Executive Director for Commercial Property at Hongkong Land, Central’s largest office landlord, “Central is still the home to the city’s most influential institutions, such as the Securities and Futures Commission, The Stock Exchange of Hong Kong and Hong Kong Monetary Authority, the connectivity of Central remains a magnet for leading players” he added,  “It is in a way that other districts cannot compare.”

    In June 2018, Central was ranked the most expensive office location in the world for the third year by global commercial real estate firm CBRE, thanks to the strong demand from mainland tenants, who would like to expand their business outside China and seeking Grade A office space.

    Office space in Central now costs USD $306 per square foot, 30 per cent higher than the second highest area, London’s West End, at US$235 per square foot.

    Of the top 10 most expensive premium rental locations, six were in Asia, including Shenzhen, Beijing, Tokyo, and Delhi.

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  • JD.com e-commerce joint venture launches officially in Thailand

    JD.com e-commerce joint venture launches officially in Thailand

    The JD Thai JV with Central Group has been formally launched this week under the brand JD Central.

    “Our partnership with Central Group – a one-of-a-kind union between China’s biggest retailer and Thailand’s strongest retail player – will provide Thai customers with a truly world-class e-commerce experience and guarantee 100 per cent product authenticity,” said Vincent Yang, CEO at JD Central.

    The new online platform officially debuts today, September 28, and will further extend JD’s footprint in the Southeast Asia region, which already includes an established e-commerce platform in Indonesia and a strategic investment in Tiki, Vietnam’s leading B2C e-commerce business.

    Central Group, Thailand’s largest retail conglomerate, offers JD instant critical mass through customer loyalty program and brand recognition, as well as merchandise. The site has been in testing mode since June 18, offering both direct sales and marketplace models. Pre-launch sales were described as having “exceeded expectations”.

    The JD Thai JV site includes categories for electronics, digital products, fashion, home appliances, books and music through to groceries, cosmetics, toiletries, beverages and processed foods.

    During the pre-launch phase, about 80 per cent of shopper accessed the site via phones, with FMCG products, mobile phones and fashion the most popular items purchased. Products from Chinese companies have proved especially popular, with leading brands including Xiaomi, Huawei, OnePlus and Lenovo.

    Yang said the JD Thai JV will “transform the local market and unlock the boundless consumer potential of the nation’s large population, with the ultimate goal of becoming the most trusted brand in Thailand”.

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  • Who’s who of retail CEOs at Consumer Goods Forum

    Who’s who of retail CEOs at Consumer Goods Forum

    Next month’s Consumer Goods Forum to be held at the Marina Bay Sands will feature a ‘who’s who’ of international retail leaders.

    This year marks the first time in a decade the event is being held in Asia. Running from June 12-15, it is themed Consumer Centricity in a Data-Driven World.

    Industry leaders including Alibaba CEO Daniel Zhang, Dairy Farm International CEO Ian McLeod, Coca-Cola Company CEO James Quincey, Majid Al Futtaim Holding CEO Alain Bejjani, Ahold Delhaize CEO Dick Boer, JD international president Winston Cheng, Central Retail CEO Nicolo Galante, Carrefour China president and CEO Thierry Garnier and Metro AG CEO and chairman Olaf Koch are all on the speaking roster.

    Former US Secretary of State Madeleine Albright will deliver a keynote address.

    Consumer Goods Forum MD Peter Freedman says the summit is often described as the most important leadership event on the consumer goods industry’s calendar.

    “The key focus of this year’s conference will be on how to ensure that we continue to keep consumers at the centre of the digital transformation in our industry. In that context we will also be discussing how we can accelerate our work on global positive change, which millennials and younger consumers are so concerned to see. We are delighted to be holding the event in Singapore, one of the world’s leading smart cities, with some of the most digitally sophisticated consumers, and geographically close to so many Asian digital innovations.”

    More than 1000 delegates, from more than 400 leading retailers and consumer goods companies will engage with this year’s theme through sessions focused on stories such as:

    • Investing in the age of disruption;
    • Evolving retail for the smart consumer;
    • The future of work: people & technology;
    • Positive change in action: driving a circular economy;
    • New Retail: creating new value for consumers;
    • Global millennials: the data-driven facts;
    • Executing a digital and omni-channel growth strategy; and
    • Transforming customer experiences through big data.
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  • Strong sales growth posted by Hermès Asia

    Strong sales growth posted by Hermès Asia

    Hermes Asia sales grew 11.3 per cent last year to €1.946 billion (US$2.4 billion) as the luxury retailer set a new record for gross retail margin.

    The company said the retail market was improving in Hong Kong and Macau, with the Asian market “pursuing its upward curve” and positive outlooks in Mainland China and South Asian countries.

    Growth was aided by store revamps at Sogo Fuxing in Taiwan, Elements mall in Hong Kong and at Kuala Lumpur.

    Sales in Japan (separated from Asia results) rose 4 per cent to €724.1 million, despite a high comparison figure from last year, which the company described as “a sustained increase” in what is a mature market, citing a selective distribution network.

    Group sales totalled €5.549 billion (US$6.863 billion), up 9 per cent at constant exchange rates. Operating income rose 13 per cent, to €1.922 billion, representing a record 34.6 per cent gross margin, while net profit rose 11 per cent to €1.221 billion.

    “Hermes achieved a new year of historic results, thanks to the quality of our know-how, the success of our creations and especially the incredible commitment of the women and men of Hermes,” said executive chairman Axel Dumas.

    Hermes will ramp up its online offer in the region this year, with a new website scheduled to go live in China at the end of this year.

    Meanwhile, the company said the sale of the Galleria building in Hong Kong’s Central district, which previously housed its flagship store, would likely generate a net capital gain of €50 million this year.

    Leather drives growth

    By category, Hermes’ leather goods proved the strongest performer last year, sales rising 10 per cent globally, reflecting increased production capacity as demand rose for its handbags.

    The ready-to-wear and accessories division grew 9 per cent, driven by the success of new collections, fashion accessories and particularly shoes.

    Sales of silk and textile products grew 6 per cent and of perfumes by 10 per cent, largely due to the successful launch of Twilly d’Hermes.

    Watch sales grew just 1 per cent with what Hermes described as “good sales” in company-owned stores. Other Hermes business lines- jewellery, Art of Living and Hermes Table Arts, grew sales by 11 per cent.

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  • Vietnam to celebrate its new retail sales highest record US$129 billion

    Vietnam to celebrate its new retail sales highest record US$129 billion

    Spurred by a rising middle class and influx of international retailers, Vietnam retail sales hit a record US$129.6 billion last year.

    This was growth of 10.9 per cent over 2016, according to the Vietnam General Statistics Office (GSO).

    Vietnam’s largest real estate company, Vingroup, starting expanding its Vinmart Plus convenience store chain in 2016 and has already topped 1000 stores – it opened 100 last month alone. It is predicted the store network could reach 3000 this year.

    Meanwhile, Vietnam last year saw the arrival of a slew of foreign retail brands, headed by Japan’s Seven & I Holdings opening its first Vietnamese 7-Eleven convenience store in Ho Chi Minh City in June.

    Swedish fast-fashion brand H&M followed in September with a store in the same city, while Zara, the chain of Spanish rival Inditex, opened its second Vietnam location in Hanoi in November (its first store, covering two levels, launched at Vincom Centre Dong Khoi in Ho Chi Minh City in September 2016).

    Thailand’s Central Group has made several acquisitions in Vietnam, including the Big C supermarket chain and electronics retailer Nguyen Kim Trading. It also launched its first stationery and office supplies store in Vietnam last year.

    South Korea’s GS Retail partnered with Vietnam’s Son Kim Group 12 months ago to open the first of their convenience stores in Ho Chi Minh City this month. They plan to open 2000 locations within 10 years.

    Double-digit growth

    Since joining the World Trade Organisation in 2007 and opening up to foreign goods and businesses, Vietnam has seen continued double-digit growth, led by a 31.5 per cent spike in 2008. With the Association of Southeast Asian Nations Economic Community taking full effect this month, Vietnam has eliminated nearly all tariffs on goods from within the region.

    Meanwhile, supermarkets and convenience stores are selling meat and vegetables at prices that are 20 to 30 per cent higher than at traditional markets, and the number of specialty shops selling organic vegetables is growing.

    Spending on cars, home electronics and other consumer durables is also brisk, with 70 per cent of Vietnam’s GDP coming from personal consumption.

    The GSO says auto sales grew by 14 per cent in value, gemstone and precious metals by 13.2 per cent, food and foodstuffs by 11.1 per cent, cultural and educational products by 10.2 per cent, apparel by 9.6 per cent, and home products by 8.5 per cent.

    Vietnam still has room for growth as modern retail channels like supermarkets and shopping centres account for only a quarter of total retail sales, and most of these businesses are in big cities, reports VIetnamNet. By 2020, the proportion of modern retail channels is forecast to rise to 45 per cent.

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  • Central Group to add its online presence with JD.com

    Central Group to add its online presence with JD.com

    After forming an e-commerce partnership with China’s JD.com, Thai retail giant Central Group expects online sales to account for as much as 15 per cent of its revenue in five years’ time, from 2 per cent now.

    CEO Tos Chirathivat says the $500 million JV, announced in September, will help it compete in Southeast Asia’s booming e-commerce market and also open up businesses opportunities in China.

    Tos estimates online retail in Thailand could rise fivefold to 10 per cent of the market as web access spreads via smartphones.

    While Central Group is a privately held investment arm of the Chirathivat family, it controls a range of publicly traded businesses – Central Pattana is a mall developer, Central Plaza Hotel runs resorts and restaurants, Robinson is a chain of department stores and COL is an office supplies company. Central Pattana turnover surged 50 per cent last year, Central Plaza 47 per cent and COL more than doubled.

    Outside of Thailand, Central Group owns Italian luxury department store La Rinascente, Danish retailer Illum and the Big C hypermarket chain in Vietnam, along with interested in retail chains including Nguyen Kim (Vietnam) and B2S (Thailand).

    Central Group is targeting annual revenue growth of 13 per cent this year, says Tos. Local sentiment is helping the company, with consumer spending in Thailand picking up after the October cremation of King Bhumibol Adulyadej ended the nation’s year-long mourning period.

  • The Garnered comes to ground at Landmark Hong Kong

    The Garnered comes to ground at Landmark Hong Kong

    Online retailer The Garnered, which offers mainly handmade fashion, craft and design products, is showcasing its wares at a pop-up in Landmark in Central.

    In a first for Hong Kong, the London-based venture will have its creations on show until November 12.

    Former Selfridges head of fashion Anna Gardner launched the e-commerce site last year to offer designers a more flexible, supportive platform through which to express their vision and highlight their creative processes.

    Garner started in the fashion industry at the Paris office of American Vogue and Vanity Fair, as an assistant to André Leon Talley. It was the springboard for an international career that has encompassed being head of communications for London retailer Joseph Ettedgui, and fashion director for Henri Bendel.

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