Retail News CRM

Tag: Hong Kong

  • Hong Kong’s Causeway Bay still top of the world’s most expensive retail strips

    Hong Kong’s Causeway Bay still top of the world’s most expensive retail strips

    Hong Kong ́s Causeway Bay remains top of the world’s most expensive retail strips, with rents rising to US$2745 per square feet per annum, 2.3 per cent higher than last year.

    New York ́s Upper 5th Avenue, with annual retail rents at $2250/sqft, retained the number two position on Cushman & Wakefield ́s latest rankings. Singapore’s Orchard Road does not appear in the top10, due to its retail stores considered to be almost exclusively inside shopping centres rather than defined as ‘high-street’.

    Completing the top five are New Bond Street in London, followed by Avenue des Champs-Elysees in Paris and Milan’s Via Montenapoleone.

    The top 10 worldwide shopping streets by rent (in US$/sqft/year):

    1 Causeway Bay (Hong Kong) – $2745

    2 Upper 5th Avenue (New York) – $2250

    3 New Bond Street (London) – $1714

    4 Avenue des Champs-Elysees (Paris) – $1478

    5 Via Montenapoleone (Milan) – $1447

    6 Ginza (Tokyo) – $1251

    7 Pitt Street Mall (Sydney) – $1076

    8 Bahnhofstrasse (Zurich) – $886

    9 Myeongdong (Seoul) – $862

    10 Kohlmarkt (Vienna) – $513

    Greater China represents seven of the top 20 Asian locations in the world’s most expensive retail strips, including Hong Kong (1st), Beijing (6th), Shanghai (8th), Shenzhen (11th), Guangzhou (13th), Taipei (15th) and Nanjing (20th).

    Major cities in China continue to see a significant amount of new retail developments, with activities being driven by both domestic and international retailers, with the latter continuing to pursue a strategy of opening in multiple locations.

    In Hong Kong, increasing pressure on rents continues as a result of growing local political unrest and the ongoing US-China trade tensions.

    Bonifacio High Street in Taguig, Greater Manila, in the Philippines recorded the biggest rental decline in Asia Pacific, posting 28.6-per-cent decrease.

    In Australia, rents in some locations have fallen, particularly in CBD strip retail areas. In contrast, rents on some of the higher footfall pitches have increased, including Sydney’s George Street.

    In the Americas, recent rental trends have varied by location, with high-street rents in some areas in Canada and the US remain under pressure.

    Retail rents in around 70 percent of the locations in Europe have generally stabilized despite the increasing polarisation.

    “In terms of rental performance, this year’s results are encouraging and demonstrate the resilience of the premier retail locations,” says Darren Yates, head of EMEA retail research at Cushman & Wakefield.

    “Rents on the world’s most expensive retail strips have been fairly stable and there is greater clarity on where retail is heading. However, there is downward pressure on rents in many weaker locations, particularly in the more mature markets of Europe and North America.  In Asia Pacific, retail has generally performed well across a very diverse group of markets.”

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  • Cartier boutique opens at Hong Kong International Airport

    Cartier boutique opens at Hong Kong International Airport

    French luxury goods house Cartier has partnered with King Power Global Development to open the doors of its reimagined boutique at Hong Kong International Airport.

    Conceived by Parisian artist and interior designer Bruno Moinard and located in the same shopping area, the Cartier HKIA boutique is the third in the world to follow the Maison’s latest airport-specific architectural concept.

    The see-through facade marks a considerable change in the overall decor, unveiling only one main entrance post-renovations. Traditional windows are replaced by vertical panels that play with lights, verticality and contrasts of the display. The boutique interior has been designed with practicality in mind, allowing for easy access and seamless retail experience. Marble flooring runs all around the boutique as an invitation for travelers and suitcases to navigate through jewelry counters. A dedicated “icon bar” area gives access to the Maison’s most “iconic” creations.

    King Power Global Development is a Joint Venture

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  • UBS Receives Huge Fine in Hong Kong

    UBS Receives Huge Fine in Hong Kong

    UBS has to pay a huge fine in Hong Kong because it overcharged its clients. Only one other major bank had to pay a similar amount ever.

    UBS had warned in the last quarterly report that authorities in Hong Kong and Singapore investigated the bank. The cause of the probe were its fees charged between 2008 and 2015 for bond transactions from Asian clients.

    UBS has now received the bill from Hong Kong: the Swiss bank has to pay HK$400 million – roughly 51 million Swiss francs. The financial market regulator in Hong Kong concluded that the Swiss bank had overcharged some 5,000 clients over the course of almost a decade.

    The control mechanism of the bank had failed in a serious systemic fashion, the regulator said. UBS is ready to pay clients damages to the tune of about HK$25 million in addition to the fine.

    The fine is the highest paid by a bank in Hong Kong ever. In 2017, HSBC had to pay HK$400 million for the distribution of Lehman Brothers securities.It is also the second fine for the Swiss bank in Hong Kong this year. In spring, the regulator had fined it 47 million francs and banned it from IPOs for a year.

  • Hong Kong protests taint solid Dairy Farm results

    Hong Kong protests taint solid Dairy Farm results

    Ongoing restructuring is impacting on Dairy Farm International’s grocery and convenience sales – but total group income is up.

    In a third-quarter management update, the company said combined sales including 100 percent of those of associates and joint ventures for the period were ahead of the same period last year, primarily due to the investment in Robinsons Retail in the Philippines in November.

    Sales by the group’s subsidiaries in the quarter declined, as revenue from hypermarkets and supermarkets was impacted by the Southeast Asia store optimization plan and the divestment of the Rustan Supercenters business in the Philippines. That said, profits from that division improved as underperforming Giant stores were closed and others upgraded.

    “While the turnaround of the Southeast Asian businesses remains at an early stage, there are encouraging signs of improvement. The group continues to invest in and grow its capabilities in Southeast Asia in line with the multi-year transformation plan.

    “Convenience stores and home furnishings continued to perform well, with sales ahead of the same period last year,” said the company. “While Southeast Asia health-and-beauty sales improved, overall health-and-beauty revenue weakened as the performance was impacted by difficult market conditions in Hong Kong.”

    The group’s convenience-store sales in the quarter were ahead of last year, with profitability modestly lower due to ongoing investment in new stores as well as rental and labour cost pressures.

    In health and beauty, Mannings’ sales and profits were significantly impacted by the ongoing social unrest in Hong Kong, however, Guardian in Southeast Asia delivered an “encouraging performance,” with solid sales growth, particularly in Indonesia. “The group continues to invest in and grow its health-and-beauty network across Southeast Asia.”

    The home-furnishings business (Ikea) reported solid sales growth for the quarter, as strong growth in Taiwan and Indonesia offset a lower performance in Hong Kong due to weak consumer sentiment. Profitability continued to be impacted by the increased cost of goods compared with last year and pre-opening expenses for stores under development, the company said. Ikea’s e-commerce operations continue to grow, with positive results in all markets as improvements were to website functionality.

    Dairy Farm International’s associate Maxim’s performance during the third quarter was impacted by the ongoing social unrest in Hong Kong, while supermarket chain Yonghui reported strong underlying growth in profitability.

    The group said its results also continued to benefit from its share of results from the 20-per-cent interest in Robinsons Retail.

    For the full year, the group expects to see benefits from its transformation program, but some of this will be “more than offset by weak trading conditions” in several of its Hong Kong businesses.

    “Nonetheless, Dairy Farm remains firmly focused on its multi-year strategic transformation to deliver long-term improvements to the business.”

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  • Subway Hong Kong marks World Sandwich Day

    Subway Hong Kong marks World Sandwich Day

    Subway Hong Kong will join 14 other restaurants to celebrate World Sandwich Day this week.

    For every regular 6-inch sandwich combo, Subway Hong Kong customers can get one standard 6-inch sandwich for free in this event. For every purchase of the combo, HK$5 will be donated to St. James’ Settlement in Hong Kong to help fight world hunger and care for the families in need.

    “It is a great way for us to give back to our local community and loyal customer base here in Hong Kong. It is also a great way for our customers, franchisees and restaurant staff to feel like they are a part of giving back to those in need,” said Michael Kyprianou, director of development & field operations.

    Ten thousand meals were donated by Subway on World Sandwich Day in Hong Kong out of 13 million meals donated around the world last year.

    CEO Subway Hong Kong development office, Christel LeBrun, said: “We hope to see our loyal guests join us for a delicious Subway sandwich this Friday and help us to fight hunger across Hong Kong”.

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  • Stüssy Hong Kong opened

    Stüssy Hong Kong opened

    American clothing brand Stüssy is preparing to launch in Hong Kong, having just redesigned its Seoul location.

    The Hong Kong store will follow the design language established in the brand’s London, Los Angeles, Seoul and Amsterdam outlets as conceptualized by design firm W&PA.

    The Hong Kong launch, scheduled for tomorrow will reveal a range of items exclusive to the region, including canvas shop jackets, printed hoodies and crewneck sweaters.

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  • Swiss Watch Gallery launches Art of Time 2019 at KL

    Swiss Watch Gallery launches Art of Time 2019 at KL

    Swiss Watch Gallery launched its signature timepiece event, Art of Time 2019 at Pavilion Kuala Lumpur.

    Art of Time is presented by Swiss Watch Gallery in partnership with Tumi, GH Mumm, and media outlets The Edge and The Star.

    In its sixth rendition, Art of Time 2019 features the world’s renowned watchmakers, including Arnold & Son, Bell & Ross, Girard-Perregaux, Graham, IWC Schaffhausen, Jaquet Droz, Oris, Parmigiani Fleurier, TAG Heuer, Tudor, Ulysse Nardin and Zenith.

    “The idea behind Art of Time is to bring to Malaysia the experience of the amazing and exclusive watchmaking showcases of Basel and Geneva,” said Ashvin Valiram, executive director of Valiram Group. “We feel it is the best way to inculcate the love for horological instruments, and the craftsmanship and innovation that go into their creation.”

    The launch event has attracted more than 200 guests including entrepreneurs, corporate captains, retail partners, watch enthusiasts, celebrities, socialites and media figures

    “This year is our best by far, with new brands joining our showcase for the first time,” said Ashvin. “We look at ourselves not just as a retailer but also an advocate of fine watchmaking and through Art of Time, we’re looking to evolve the customers’ interest in watches and fuel the passion.”

    A Tumi pop-up also featured in the exhibition, highlighting the Tumi x Chris Pratt collection. There was also a special booth featuring watch winders from Orient Crown, a Singapore-based luxury timepiece accessories company.

    “When we opened our first watch boutique in Penang in 2001, we never expected to become a preeminent watch retailer in the country. Swiss Watch Gallery is indeed a young adult now and we look forward to further strengthening the business beyond the shores of Southeast Asia,” said Ashvin.

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  • Hong Kong restaurant sales fall as protests deter diners

    Hong Kong restaurant sales fall as protests deter diners

    Hong Kong restaurant sales slumped by 11.7 percent in the third quarter as protests deterred foreign visitors and locals dined in more often.

    The value of receipts was provisionally estimated at HK$26.4 billion (US$3.37 billion), and the value of purchases by restaurants decreased by 10.9 percent to HK$8.5 billion ($1.086 billion).

    After netting out the effect of price changes over the same period, the provisional estimate of the volume of restaurant receipts decreased by 13.6 percent year on year in the third quarter.

    Quarter on quarter, restaurant receipts decreased by 10.6 percent in value and by 11.4 percent.

    Comparing the first three quarters of this year with the same period last year, Hong Kong restaurant sales decreased by 3 percent in value and by 5.2 percent in volume.

    A government spokesman said the sharp deterioration of Hong Kong restaurant sales in the third quarter represented the largest year-on-year decline since the outbreak of Sars in the second quarter of 2003.

    “The plunge in restaurant receipts in the third quarter mainly reflected the severe disruptions to food and beverage businesses caused by the local social incidents, while weak consumer sentiment amid subdued economic conditions also played a part.”

    The spokesman said food-and-beverage businesses will continue to face “immense pressure” in the near term “amid continued protests involving violence and the subdued economic outlook”.

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  • DBS Inks Fintech Degree MoU with Chinese University of Hong Kong

    DBS Inks Fintech Degree MoU with Chinese University of Hong Kong

    DBS signed a memorandum of understanding with the Chinese University of Hong Kong for the inaugural fintech masters degree to further innovation and academic strength in the emerging field.

    The MoU was signed by Martin Wong, the university’s dean of engineering, and Brit Blakeney, DBS Hong Kong’s head of innovation & ecosystems. In addition to expressing commitment, students will gain first-hand experience in fintech projects including «digital customer journey, API application, big data analytics, blockchain, artificial intelligence, machine learning and sustainability» alongside internship opportunities and sharing sessions from DBS Hong Kong mentors.

    Our MSc FinTech program is committed to nurturing technologically adept and business savvy talents who can offer innovative solutions to finance-related industries, Wong said. This collaboration is beneficial to both sides as we firmly believe that extending and strengthening academic and corporate relationships is crucial to the development of financial technologists.

    Banks can no longer work in silos and can only be successful by materially transforming the way they work and by collaborating with fintechs, Blakeney added, highlighting the bank’s commitment to talent development in Hong Kong.

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  • September Hong Kong retail sales down across the board

    September Hong Kong retail sales down across the board

    Hong Kong retail sales in September were down 18.3 percent in the same month last year, but the decline was less than in August. The luxury sector again took the biggest hit.

    Census and Statistics Department data released Friday provisionally estimated sales at HK$29.9 billion. The revised estimate for August’s decline was 22.9 percent, with sales for the third quarter down 15.1 percent on the second quarter, and by 19.5 percent year on year, almost on a par with 1998’s third-quarter record decline during the financial crisis.

    Year-to-date, sales are down by 7.3 percent.

    A government spokesman described the decline as “significant” as “local social incidents continued to take a heavy toll on inbound tourism and consumption-related activities”.

    “As protests involving violence continue to deter tourists and reduce local consumption, and the subdued economic outlook also dampens consumer sentiment, the performance of retail sales is likely to stay weak in the near term.”

    Hong Kong retail sales of jewelry, watches and luxury goods fell 40.8 percent during the month, which was less than the 50-plus percent that some retailers were fearing. Department-store sales fell by 25.6 percent, apparel by 26.3 percent, accessories by 16.6 percent, and medicines and cosmetics by 21.7 percent.

    Perhaps the greatest difference between August and September was the obvious impact of locals spending less – to date the protests have had the greatest effect on retailers serving the inbound tourist market. Supermarket sales fell by 2.6 percent in September; food, alcohol and tobacco sales by 13.8 percent; furniture and fixtures by 7.2 percent; books, newspapers, stationery, and gifts by 9.6 percent; and motor vehicles and parts by 16.1 percent.

    Sales of Chinese drugs and herbs were down 18.2 percent, of electrical goods by 1.4 percent and at optical shops by 15.8 percent.

    The only category to show growth in September was fuel, up by 5.9 percent.

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  • Hong Kong Virtual Banks Talk Linkage with ATM Giant Jetco

    Hong Kong Virtual Banks Talk Linkage with ATM Giant Jetco

    Hong Kong’s upcoming virtual banks are considering cash withdrawal capabilities for its customers through automatic teller machine giant Jetco.

    Under the terms of the newly issued virtual banking licenses, no physical branches are allowed to be made and a partnership would allow the digital lenders to sidestep the rule while still providing access to physical cash.

    The virtual banks may opt to issue cards to customers to use the Jetco ATMs owned by other banks, or they can allow access through a mobile application on smartphones,» said Jetco CEO, Angus Choi Ping-chung, in an SCMP report.

    Jetco was founded by the entity preceding Bank of China (Hong Kong) which is amongst its now 30-strong list of lenders that are shareholders, including Standard Chartered Bank.

    With 44 ATMs per 100,000 residents, Hong Kong has the second-highest ATM density per capita, behind Singapore, according to the World Bank. And in Hong Kong, Jetco operates 60 percent of the 3,000 ATMs with the remaining 1,200 owned by HSBC and its majority-owned lender Hang Seng.

    But recent unrest in the city has led to the damage of about 10 percent of all ATMs, according to Choi, who noted that transactions were nonetheless unaffected as customers would just seek other undamaged machines.

  • Foodpanda Singapore expands into grocery delivery

    Foodpanda Singapore expands into grocery delivery

    Food delivery service Foodpanda is to expand into other services, including groceries, household essentials and flowers.

    The company will offer delivery service for items from more than 1000 retail partners in Singapore, including Caltex Star Mart, Eu Yan Sang, Hao Mart and Mothercare, with the guarantee of 25-minute delivery time.

    “Over the past year, from the feedback we’ve received from our customers, it was clear that they wanted to enjoy even more convenience in their everyday lives,” said Luc Andreani, MD of Foodpanda Singapore. “This new expansion is a natural extension of our goal to deliver services that bring even more convenience and experiences to Singaporeans’ everyday lives.”

    In the last three month, Foodpanda has recruited 100 engineers to manage the new platform and aims to hire up to 300 by the end of the year.

    Foodpanda has a network of more than 8000 delivery riders and more than 7000 restaurant partners in the city.

  • HSBC Posts 24 Percent Profit Drop

    HSBC Posts 24 Percent Profit Drop

    HSBC posted a 24 percent drop in third-quarter profits despite a «resilient» Hong Kong business that managed to offset the city’s technical recession.

    The bank reported profits of $2.97 billion in the three months ended September 30, compared to $3.89 billion in the same period last year. HSBC’s pre-tax profits reached $4.84 billion, down 18 percent and below consensus estimates of $5.29 billion.

    In addition to a 2.9 percent decrease in revenue, primarily driven by lower global market activities, the bank also accounted for a number of provisions and one-off costs including a customer redress provision of $606 million, severance costs totalling $120 million and an expected credit loss provision of $400 million, mainly for unsecured retail lending and higher charges in its U.K. and Hong Kong commercial banking business.

    Despite the global results, the bank reportedly remained «resilient» in Hong Kong despite the headwinds. HSBC’s Hong Kong business registered a 1.3 percent uptick in adjusted pre-tax profits to reach $3.02 billion and push Asia’s pre-tax profits up 4 percent to $4.7 billion.

    Parts of our business, especially Asia, held up well in a challenging environment in the third quarter, said HSBC’s interim CEO, Noel Quinn.

    However, Quinn called performance elsewhere «not acceptable» underlining business activities within continental Europe and the non-ring-fenced bank in the U.K. and the U.S.

    Our previous plans are no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth. We are, therefore, accelerating plans to remodel them, and move capital into higher growth and return opportunities, he said, adding that the bank would not longer reach its return on tangible equity target of more than 11 percent in 2020.

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  • StanChart Opens Second Innovation Lab in Hong Kong

    StanChart Opens Second Innovation Lab in Hong Kong

    Standard Chartered recently opened its second eXellerator innovation lab in Hong Kong which will focus on developing solutions for its corporate, commercial and institutional banking clients.

    Located in the central business district, the new lab differs from the first eXellerator based in industrial district Kwun Tong, which was launched last year and focuses on solutions for the retail banking business.

    The new lab will leverage emerging technologies and be «a focal point for engagement with the stakeholders of the Hong Kong fintech ecosystem» including regulators, government-backed organizations, business partners, clients and technology companies, Standard Chartered said in a statement.

    Hong Kong is not only Standard Chartered’s largest retail market, it is also where some of our most important corporate commercial & institutional banking clients reside and where there is a vibrant ecosystem for technology and innovation, added Alex Manson, global head of Standard Chartered’s SC Ventures – a unit that focuses on fintech investments and innovations which backs the eXellerator project.

    The new eXellerator lab location in Central gets us to the heart of it and we look forward to many more engagements and partnerships.

  • Gontran Cherrier opens first Asian bakery in Hong Kong

    Gontran Cherrier opens first Asian bakery in Hong Kong

    Fourth-generation French baker and globally recognized pastry chef Gontran Cherrier has opened his first boulangerie and restaurant in Hong Kong’s K11 Musea.

    The Hong Kong store and restaurant mark the first flagship for Asia with further openings planned across Japan, Taiwan, and the UAE.

    At K11 Musea’s Food Playground, the 3500sqft Gontran Cherrier space encompasses an open bakery, an 80-seat restaurant along with a communal table, a cafe area with seating as well takeaway coffee, and a retail space for take-home baked goods.

    More than 2000 baguettes and croissants are prepared in an open kitchen each day, using premium French flour and butter flown in from France. The baked menu consists of more than 50 handmade creations ranging from viennoiserie, bread, patisserie, cookies, and cakes.

    In just nine years, Gontran has built a pastry empire including more than 50 stores worldwide from a single store in Montmartre, Paris. He has written cookbooks and appeared on television.

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