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Tag: Isetan

  • Lotte El Cube – Korea’s new compact mall

    Lotte El Cube – Korea’s new compact mall

    In a bid to overturn the sluggish growth of traditional brick-and-mortar retail, Lotte Department Store is launching a new type of shopping mall in Seoul, the Lotte El Cube.

    In a trendy university neighborhood, the relatively small store focuses specifically on young, fashion-conscious shoppers – a departure from the retailer’s usual strategy of offering something for everyone at its department stores.

    Lotte El Cube 4

    Covering 630 sqm in a three-storey building, the Lotte El Cube houses 20 clothing brands, mostly casual in style. Featured labels include Pigment, PlayNoMore and Tomotom’s.

    “El Cube can adopt different concepts and focuses, such as beauty and lifestyle, depending on the location and needs of consumers,” says Lotte, which plans a second such outlet also in Seoul within a year.

    Lotte says it took its cue from Japan’s Isetan Department Store, which has several branches with different offerings. Isetan Mirror is dedicated to cosmetics and beauty products, while its Alta mall targets shoppers in their 20s.

    Lotte El Cube 5

    Known for its urban art and indie music culture, the neighbourhood where El Cube has set up is also attracting start-ups. The average number of daily users of nearby Hongik University Station grew from 72,000 in 2014 to 78,000 last year, and the neighborhood is also expanding in size.

    Lotte El Cube 1

    Annual combined sales at South Korea’s department stores – Hyundai and Shinsegae as well as Lotte – have had negative growth since 2014. Lotte is confident El Cube will attract new customers and become a fresh source of revenue amid unfavorable market conditions.

    “The key is to find new consumers as department stores are expected to face headwinds and low growth,” says Lotte merchandise strategy division head Woo Gil-jo.

    To match other stores in the area, El Cube will have extended shopping hours, from midday to 10pm.

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  • Isetan Thailand unveils Washoku Gallery food concept

    Isetan Thailand unveils Washoku Gallery food concept

    Isetan Thailand has converted its fifth floor into a food concept called Washoku Gallery, which opens today (December 18).

    Washoku Gallery will, in keeping with the department store’s heritage, feature food products imported from Japan. Japanese food and culture are broadly liked by Thailand’s urban consumers and Isetan wants to tap into the growing demand.

    Isetan Washoku 4

    The Isetan Thailand department store is located in CentralWorld in downtown Bangkok.

    “The Thai retail market has undergone drastic changes since Isetan Thailand opened in 1992, and numerous Thai customers have said they want to see the same things at the store as at Isetan stores in Japan,” a spokesman for the retailer said in a statement.

    Isetan Washoku 1

    “At Washoku Gallery, Isetan offers goods and services so that customers can enjoy Japanese culinary culture. Isetan will also minimise price differences between products in Japan and those in Thailand as much as possible so that as many customers as possible can feel ‘this is Japan’.”

    Most of the products on sale have been introduced to Thailand for the first time. There are also nine Japanese-Western food brands, four Japanese bakery brands, 10 Western bakery brands and a Japanese Food Court with seven Japanese food brands.

    Isetan Washoku 2

    Isetan will work with Japanese food companies to bring experts to Bangkok to demonstrate their artisanship to customers. Tea masters will visit the store when newly harvested tea leaves are put on sale, and sake-brewing masters from rice wine breweries will be invited from all over Japan. Sashimi experts will slice freshly imported fish from Japan as customers look on.

    Isetan Washoku

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Said Isetan Thailand president Takaki Akune: “The newly remodelled floor, Washoku Gallery, is unique – only a Japanese department store can offer [it]. I’m confident that at Washoku Gallery, Thai customers will feel a sense of satisfaction they have never experienced. ‘This is Japan’ is a concept that Mitsukoshi Isetan Holdings recognises as part of its corporate strategy.

    “The whole group uses this concept to present the beauty of Japan to the world, from products to sales and services,” he said.

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  • Isetan Singapore losses mount

    Isetan Singapore losses mount

    Isetan Singapore has reported a third straight quarterly loss. The high profile, Japanese-owned four store strong department store chain has more than doubled its loss of the same quarter last year.

    The company says sales were down in all of its stores, a trend evident in the results of other locally listed retailers in recent weeks including Metro and FJ Benjamin, and even Courts whose Singapore sales were down despite a significantly increased profit.

    In the three months to September 30, Isetan Singapore lost S$6.15 million. That compares with a $2.93 million loss in the same quarter last year and a $5.85 million loss in the preceding quarter to June 30.

    Sales fell 14 per cent year on year to $68.71 million, partly due to the March closure of its Isetan Orchard store at Wisma Atria. (The company will now lease that space to various retailers.)

    “With the exception of Isetan Jurong East which is still experiencing growth in sales, the other stores had lower sales,” Isetan Singapore said in a statement.

    “Moving forward, the slower economic growth may impact sales and the trading environment is expected to remain very competitive among retailers.”

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  • Bleak result for Isetan Singapore

    Bleak result for Isetan Singapore

    Japanese department store operator Isetan has reported mounting losses in Singapore as sales fall and rents rise.

    Group sales for the three months to June 30 were $71.467 million, a decrease of $10.819 million or 13.15 per cent over the same quarter a year ago. Isetan said the decrease was largely due to the closure of its Isetan Orchard store at the end of March to prepare the store space for subletting, and a slowdown in sales in all of its stores (except Isetan Jurong East) “due to an environment of slower economic growth and stiff competition amongst retailers”.

    In the second quarter the company incurred a loss after tax of $5.847 million, compared to a loss of $1.214 million in 2014.

    Higher rent at Isetan Scotts, affected both the store’s result and was the main reason for the overall increase in the rent outgoings.

    “At Isetan Orchard, the process of finding tenants and converting the space for renting out is ongoing,” the company said in a statement.

    “In this respect, there was no rental income from this store during Q2.”

    “At Isetan Jurong East, although the store is experiencing sales growth, it is not contributing to profits yet. The general slowdown in sales was also a drag on the results of the Group for Q2.”

    Its other stores are at Katong, Tampines and Serangoon Central.

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