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Tag: Harvey Nichols

  • Harvey Nichols suffers as Mainland Chinese tourists ‘disappear’

    Harvey Nichols suffers as Mainland Chinese tourists ‘disappear’

    Declining Mainland Chinese visitors to Hong Kong have put a dent in Dickson Concepts’ sales and profit in the first half of its fiscal year.

    Dickson Concepts, which owns the Harvey Nichols department store network, has reported a 6.6 percent decline in sales to HK$1.713 billion (US$218.8 million), and net profit attributable to shareholders down 10.9 percent to $119 million.

    But it was a tale of two quarters, according to chairman Sir Dickson Poon.

    “The group achieved significant growth in both sales and profit in Hong Kong during the initial few months. However, the retail climate in Hong Kong deteriorated significantly thereafter and Mainland Chinese tourists all but disappeared.”

    The impact of that was partially offset in Taiwan where like-for-like profits increased by 169 percent as a result of margin improvement and cost and inventory control.

    Sir Dickson did not mince words in his shareholder announcement, describing the outlook for Hong Kong retail as “bleak”.

    “The group is extremely pessimistic about the retail climate in Hong Kong. Trading has been adversely affected and sales have been achieved at the expense of margin. Meanwhile, fixed costs remain very high. Additionally, the group does not expect a return of Asian and Mainland Chinese tourists in the foreseeable future. The significantly worse result could be expected in the second half of this financial year. With Hong Kong in recession, the future looks bleak.”

    Dickson Concepts opened the new Harvey Nichols store at Pacific Place on September 19, the first of its new generation stores globally, mixing the company’s online and offline stock seamlessly using interactive displays and digital technology.

    “The new store has been well received since its opening,” said Sir Dickson. “We are confident that the store and the new model will become a long-term success.”

    By combining interactive digital displays alongside traditional physical display units, the store now showcases more than three times the number of products within half the floor space, thereby enabling an increase in sales density with significantly reduced fixed costs, while offering customers “a truly differentiated shopping experience”.

    Despite the gloomy era in Hong Kong, Sir Dickson said the company has net cash of $1.728 billion and a strong balance sheet.

    “The group is in a strong position to cope with Hong Kong’s recession and the very difficult retail climate.”

  • Dickson Concepts unveils HK$1bn new retail format

    Dickson Concepts unveils HK$1bn new retail format

    Dickson Concepts has unveiled a new luxury retail concept merging the cutting-edge technology with a personalised styling service, to be launched under the Harvey Nichols banner. The first flagship store for the new format will be unveiled at Pacific Place in Autumn next year, with plans to expand the concept globally.

    Dickson Concepts says it plans to invest HK$250 million on the Pacific Place store and up to a further HK$1 billion in technology and technology-related companies, together with additional stores abroad.

    The project has evolved from the strategic partnership between Dickson Concepts and its Harvey Nichols Group subsidiary in the UK, announced in March, in which the parent company gained access to the department store’s digital expertise and will use it to create a seamless inventory across the UK and Hong Kong businesses, allowing customers to shop the entire range and even consult with store staff online. The move has trebled the number of products available to shoppers.

    In a statement, Dickson Concepts said it will build on the Harvey Nichols business based on two formats – one being the flagship new format store just announced, the other the traditional flagship store format which Harvey Nichols Landmark operates under.

    “Together, the two formats will allow Dickson Concepts to maximise and fully develop the potential of Harvey Nichols in different parts of the world.”

    Day and night service

    The new concept store will allow Harvey Nichols to offer “day and night service” for the first time, with in-store stylists serving customers during the day and Harvey Nichols’ UK stylist network servicing the e-commerce platform during the night.

    “The service will allow customers to shop live and obtain styling advice from Harvey Nichols’ stylists in Hong Kong and the UK via instant messaging, photo sharing, and live video streaming, even during late evening in Hong Kong. Products selected can then be shipped directly to the customers’ home, office or our Hong Kong store for personal service and immediate alteration by our expert tailors as maybe required, thereby creating a service that is unmatched by pure online operators,” the company said.

    The live online shopping functionality is powered by global retail technology company Hero, with which Harvey Nichols signed a strategic partnership in June.

    “Technology is core to Harvey Nichols’ new store format and is carefully interwoven into the store to drive the most immersive, enjoyable, and personalised shopping experience possible,” the company said.

    “In its new retail format, Harvey Nichols’ online exclusive offering will be interspersed into the presentation of physical products to provide customers with the full view of the most up to date and exciting products available, while allowing even frequent customers to explore and discover new product stories on every visit. Customers will be able to scan any digital products showcased in the store directly onto their own smartphones, or alternatively be served with an expert team of stylists.”

    The Pacific Place store will feature an online style lounge where dedicated stylists will work to provide each customer with product recommendations built around the customer’s personal taste, needs and preferences.

    “This will allow each customer to be presented with a selection of coordinated outfits that are completely tailored to them, without experiencing the frustrations of surfing through thousands of products available online to find the perfect piece.”

    The new store will be located on the second level of the current Harvey Nichols store at Pacific Place, and will showcase three times the offering. The existing store will be reduced in size from 84,000sqft to 42,000sqft,  resulting in a large reduction in fixed costs and substantially increased sales due to the significant increase in products and brands offered. “As such, the new format will allow Dickson Concepts to maximise sales densities and profits, compete against pure online operators, while offering customers the most curated product and service offering possible,” the company said.

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  • Castore Hong Kong prepares for debut next month

    Castore Hong Kong prepares for debut next month

    Castore Hong Kong is set to launch next month. The British sportswear brand will launch websites in Hong Kong, South Korea, Singapore and Japan, and will sell its men’s sportswear range in Hong Kong through local partner Harvey Nichols.

    Harvey Nichols merchandising manager, menswear Marco Lau said Castore creates cutting-edge fitness apparel for athletes who demand both function and style.

    “The multi-purpose use of Castore kit, from outdoor running to indoor gym training, appeals to the Hong Kong consumer and we have no doubt the brand will be a great success.”

    Castore’s head of Asia, David Wakely, said Asia offers a huge opportunity for Castore.

    “The brand has been incredibly well received to date by customers across the region and we are very excited to continue our growth going forward.”

    Co-founder Tom Beahon said the brand’s customers in Asia tend to be professionals, either locals or expats, who take their fitness very seriously.

    “So the demographic fit is perfect for us. We see huge potential among the residents and the millions of tourists who visit Hong Kong and are actively looking at locations to open a standalone Castore Hong Kong store.

    “Sales in Asia are growing at 400 per cent a year and are on track to account for 40 per cent of international sales in the next 12 months.”

  • Harvey Nichols bucks high street trend with profit rise

    Harvey Nichols bucks high street trend with profit rise

    Upscale UK department store Harvey Nichols doubled its pre-tax earnings this year to £14.7 million – a stark contrast to rival chains.

    Group sales rose 9 per cent to £210 million during the year to March 31, the retailer’s high-end positioning seemingly shielding it from the challenges facing companies like House of Fraser, John Lewis and Debenhams, all struggling to achieve growth or profitability.

    Harvey Nichols says its Kensington flagship store delivered a “strong performance” following refurbishment, but that trading generally remained tough.

    “We are extremely pleased to see a strong financial performance last year, and our ambitious Knightsbridge store refurbishment plans have had a positive impact,” said joint COOs Manju Malhotra and Daniela Rinaldi.

    “However, the retail environment remains challenging and competitive. With this uncertain outlook, we are focused for the remainder of this year on continuing to drive sales and delivering an omnichannel experience for our customers.”

    The revamp of the flagship commenced two years ago with the menswear department and the company has just completed the womenswear international section.

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  • Dickson Concepts opens up Harvey Nichols to HK online shoppers

    Dickson Concepts opens up Harvey Nichols to HK online shoppers

    Dickson Concepts has entered a strategic partnership with UK department store Harvey Nichols to combine physical retail stores and e-commerce.

    “Dickson Concepts will gain complete access to Harvey Nichols’ digital expertise, and allow Harvey Nichols to accelerate its global e-commerce strategy by combining its highly curated fashion edits from two iconic international locations online,” the Hong Kong-listed company said in a statement.

    Dickson Concepts operates Harvey Nichols, Beauty Bazaar and Beauty Avenue stores and controls the UK-incorporated Harvey Nichols Group.

    Leading international brands and emerging designer talent from both Harvey Nichols UK and Harvey Nichols Hong Kong will be available online, with local customers now able to shop the global Harvey Nichols range.

    As part of the partnership, Dickson Concepts will also launch multiple omnichannel initiatives, such as introducing “Endless Aisles” at its stores that will allow in-store customers to enjoy the full offer of Harvey Nichols’ in-store and online offering simultaneously.

    E-commerce styling lounges with stylists offering personalised service will be introduced to assist customers to coordinate their personal looks.

    “Dickson Concepts will also work with Harvey Nichols to introduce augmented reality solutions in-store, which will allow Hong Kong customers to virtually try selected beauty products only available at Harvey Nichols UK, before proceeding to make purchases online. Furthermore, Dickson Concepts will work with Harvey Nichols to allow Hong Kong’s online customers to shop live with Harvey Nichols’ in-store stylists in the UK, via a solution powered by the global retail technology company Hero, with which Harvey Nichols has an exclusive arrangement.”

    Hong Kong online shoppers will be able to connect and interact with associates from Harvey Nichols’ UK stores via instant messaging, photo sharing, and live video streaming, allowing customers to shop the group’s eight stores in the UK in the comfort of their own homes.

    Since launching harveynichols.com in 2011, Harvey Nichols has invested over HK$500 million in its e-commerce business, allowing the company to become the first luxury department store in the UK to integrate a marketplace solution in its e-commerce platform, along with being the first department store in the UK to link its online customers with in-store product experts in real-time, to enable live shopping via instant messaging, photo sharing, and live video streaming.

    Harvey Nichols also recently signed a multi-year, global partnership deal to become the first department store in the world to join the Farfetch platform. Farfetch customers will be able to buy from Harvey Nichols from anywhere in the world.

    Embracing digital

    Dickson Concepts says the partnership with Harvey Nichols demonstrates the former’s commitment to embracing digital technologies and developing its e-commerce business to “define a completely new retail format for Hong Kong,” re-enforcing its belief that e-commerce will become a dominant part of retail internationally.

    “As such, the group is prepared to invest up to HK$200 million on its digital marketing and e-commerce initiatives to grow its e-commerce business, and with its healthy cash balance in excess of HK$1 billion, will also make additional appropriate strategic investments to accelerate its growth in e-commerce.”

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  • More Dickson Concepts stores in Taiwan

    More Dickson Concepts stores in Taiwan

    Hong Kong fashion and watch retailer Dickson Concepts has opened three new stores in Taiwan this year as it continues its regional expansion.

    Dickson Concepts operates retail stores under brands including Tommy Hilfiger, JT Dupont, Bertolucci, Roger Vivier, Tod’s and Harvey Nichols.

    At the end of September, the retailer had 111 stores: 25 in Hong Kong, 58 in Taiwan, 15 in Mainland China, five in each of Singapore and Malaysia and three in Macau. However, Hong Kong accounted for 75.6 per cent of its sales in the first half of this financial year, with Taiwan’s share just 18.4 per cent, despite the higher store count. Mainland China and the rest of Asia accounted for just 6 per cent of sales.

    Dickson Concepts reported total sales of HK$1.576 billion for the first half, an increase of 11.7 per cent. Same-store sales increased by 12.4 per cent. It posted a net profit attributable to shareholders of HK$8.1 million.

    The company said it expects the retail climate in Hong Kong, China and Southeast Asia to “remain volatile” in the foreseeable future.

    “The performance of the group in the Hong Kong retail market has improved slightly, but remains inconsistent,” said the company in its half-year profit announcement.

    “The Taiwan retail market has remained weak due to continued reduction in tourist arrivals from China, primarily caused by poor political relationship between Mainland China and Taiwan. In China, consumer demand continues to be affected by reduced spending on gift-giving.

    “Given these difficult conditions, the group will continue to rigorously control costs and expenses at all levels of operation and adopt a very cautious approach to its further expansion and development strategies.”

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  • Harvey Nichols Hong Kong reopens

    Harvey Nichols Hong Kong reopens

    Harvey Nichols Hong Kong has reopened its store at The Landmark following a three-month renovation.

    Originally opened in 2005, the five-storey store now offers the Style Concierge, a personalised service that helps customers with their wardrobe makeover. It also offers makeovers for every occasion, invitations to events, private sales, special offers, gift suggestions, beauty advice and delivery services.

    Harvey Nichols Hong Kong Landmark

    Also new is Mixology, a permanent pop-up area that features new designer labels and fashion trends. Its first showcase is Korean fashion power houses including Customellow, CY Choi, D-Antidote and Solid Homme.

    Harvey Nichols Hong Kong Landmark 2

    More than 30 makeup and skincare labels have been introduced as well, including Addiction, La Mer, Nail & Lash by Per Face, Tom Ford Beauty and Whoo.

    From Copenhagen Fashion Week, Harvey Nichols has introduced designer labels including Han Kjøbenhavn, Henrik Vibskov and Tonsure. These add to the line-up of labels from other international fashion weeks including Hilfiger Collection, Maison Margiela and Vera Wang for women, and Lavin and Marni for men.

    Harvey Nichols Hong Kong Landmark 3

    The store’s facade is a geometric-faceted floating panel sitting prominently with the inherited adjacent architecture, with the abstracted lines from the “H” and “N” creating a pattern that is illuminated at night.

  • Harvey Nichols is closing in Baku

    Harvey Nichols is closing in Baku

    British luxury department store operator Harvey Nichols has pulled out of its first store in Azerbaijan just four months after  a high profile opening in March.

    The seven-storey Harvey Nichols store opened in the oil rich nation’s fast-growing capital city of Baku offering 110,000 sqft of space selling more than 500 labels in men’s, women’s, children’s and bridalwear; a cosmetics hall, perfumery, cafe, restaurant, lounge and club. It was its largest store outside London.

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

    But Harvey Nichols has parted ways with joint venture partner in the store, Perfomans, a subsidiary of a Baku investment company.

    The reasons aren’t clear and appear to be subject to legal proceedings: “Harvey Nichols has terminated its licence agreement with the operator of the Baku store. Consequently, the Baku store no longer operates under the Harvey Nichols brand,” the retail company said in a statement. It said further comment was not possible due to “legal reasons”.

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

  • Harvey Nichols Baku opens

    Harvey Nichols Baku opens

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

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

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

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

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

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

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