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Tag: parkson

  • Parkson Retail Asia profit down 71.6% in Q2

    Parkson Retail Asia profit down 71.6% in Q2

    Department store operator Parkson Retail Asia has posted a second quarter net profit of $2.9 million, down 71.6 per cent from the same period a year ago.

    Revenue in the three months to Dec 31 fell 12 per cent to $103.5 million, driven by a 7.3 per cent fall in same store sales growth in Malaysia and 5.2 per cent fall in same store sales growth in Myanmar.

    Some new stores were also in their first year of operations, which is an initial loss-making period, the group said.

    Earnings per share stood at 0.43 cents, down from 1.51 cents a year ago.

    Net asset value per share was 27 cents as at Dec 31, up from 22 cents as at June 30 last year.

    “The Malaysia operations for the next reporting quarter may encounter muted consumer sentiment, however, this drag will be buffered by progressive normalisation of sales post-GST (Goods and Services Tax ),” the group said in a statement to shareholders after market close on Feb 3.

    It said that it expects Vietnam’s retail environment to improve in the second half, while demand from Indonesia’s middle class will remain robust.

    “The Myanmar operations may be affected by the possible closure of FMI Centre, where the store is located, for re-development. However, the landlord has not confirm on the timing for the redevelopment,” the group added.

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  • Parkson expands into food to stem losses

    Parkson expands into food to stem losses

    Hit with a 15 per cent sales slump since the introduction of GST in Malaysia, embattled department store operator Parkson is set to enter new categories – gourmet food, supermarkets, beauty  – and import new fast fashion brands.

    The company has invested RM100 million (US$22.8 million) into a rebranding and repositioning project.

    It will also introduce variations of its reform into other countries where it operates: Vietnam, Indonesia, China, Myanmar and Cambodia.

    Parkson Retail Asia director Datuk Magic Lee said in a media briefing that the group expected sales to fall as much as 15 per cent after GST came into effect and that the company has also been hit by a heavy devaluation of the ringgit.

    “We will keep doing this. Retail needs to keep changing or it will get boring. We will continue investing in new businesses, bringing in new brands, even in food and beverage. We plan to bring in a bakery in the future.”

    Parkson plans to launch three “affordable” fast fashion brands from Korea into Malaysia soon, targeting about RM60 million in annual sales from the stores in stores. Those brands are Spao, Mixxo and Who.A.U. The first concessions will open on November 27.

    Lee says the company plans to build a portfolio of about 100 brands in its apparel offer and will also continue to open new stores throughout the region.

    “At the moment, we are very aggressive in South-East Asia. In Malaysia, we open three or four new outlets each year, and in Indonesia between three and five outlets,” he said.

    “In Southeast Asia, we are still fairly competitive. Competition here [in Malaysia] is not so severe. Many strong brands have not come to Southeast Asia yet, so we can bring these brands in.”

    Lee says while the company expects the weak consumer sentiment in Malaysia to continue, the company plans to remain proactive “so when the market is ready, we are ready too”.

    He hopes the rebranding campaign will fuel at least a 50 per cent rise in sales year on year.

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  • Parkson Retail restructure knocked back

    Parkson Retail restructure knocked back

    A plan to simplify the complex ownership structure of Parkson Retail Asia operations has been rejected by independent shareholders.

    The proposal, defeated by a 63.44 per cent vote against at a shareholders meeting on Monday, would have seen the Singapore-listed Parkson Retail Asia parked under Hong Kong listed Parkson Retail Group, which in turn is a subsidiary of Malaysian-listed Parkson Holdings.

    The side effect of the vote is that Malaysian shareholders have missed a proposed cash distribution arising from the internal reorganisation.

    Parkson Retail Asia has 67 stores in Southeast Asia which were to be merged with the Parkson Retail Group network of stores in Greater China.

    Parkson Holdings says the companies will now continue to operate under the status quo.

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  • Parkson Retail grows regardless of Vietnam drag

    Parkson Retail grows regardless of Vietnam drag

    Listed division retailer operator Parkson Retail Asia has reported a 5.5 per cent year-on-year improve in internet revenue for the third quarter.

    Within the three months to March 31, Parkson posted a revenue of S$7.98 million.

    The corporate attributed the development to elevated gross sales in its Malaysia department shops the place shoppers have been shopping for items prematurely of the introduction of GST on April 1.

    The development got here regardless of a discount in similar retailer gross sales from the corporate’s Vietnam operations, which proceed to wrestle and now faces elevated competitors from the arrival of M&S and the Thailand Central Group’s Robins department shops in the important thing Ho Chi Minh Metropolis and Hanoi markets.

    Gross sales within the Indonesia and Myanmar shops each improved.

    Complete gross sales income for the group rose 9.2 per cent to S$116.58 million.

    CEO Toh Peng Koon stated the corporate expects a decline in Malaysia gross sales following the GST implementation, however expects that can be buffered by the beginning of the pre-Hari Raya festive shopping for season in the direction of the top of June.

    He stated he expects Indonesia and Myanmar to conitnue to ship encouraging outcomes, however warned Vietnam remained a difficult market.

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  • Parkson profits slump

    Parkson profits slump

    Parkson Retail Asia has reported a 24.6 per cent slump in net profit – largely attributed to new store establishment costs.

    The Singapore-based department store operator has reported a second quarter trading profit of S$10.23 million.

    The company’s biggest problem markets appear to be Malaysia and Vietnam where same store sales are showing negative growth. And in Vietnam the company accrued costs relating to the closure of a store in the capital city, Hanoi.

    Total sales revenue was flat at S$117.52 million in the three months to December 31, while expenses rose 6.6 per cent to S$109.5 million.

    In the half year to December 31, net profit fell 28.2 per cent to S$17.09 million, on revenue a marginal 0.6 per cent higher at S$227.51 million.

    In a statement, group CEO Toh Peng Koon said the closure of the Landmark-Keangnam store in Hanoi resulted in removing “a major drag on our operating performance” there.

    “While we expect Malaysia’s consumer sentiment to remain muted in the near term, consumer buying prior to the introduction of the Goods and Services Tax on April 1 may provide us with some buffer.

    “We feel confident that the strategies we have initiated to improve our fundamentals will reap the desired results going forward. With our healthy balance sheet and strong cash generation from our operations, we are well-positioned to continue to identify and make prudent investments necessary to growing our business.”

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  • Parkson in China food foray

    Malaysia’s Parkson has entered into a joint venture to develop a food retailing business in China as it transforms its department store portfolio into lifestyle centres.

    The company’s wholly-owned subsidiary Grand Parkson has teamed with fellow Malaysian company AUM Hospitality (AUMH) which it majority owns, to create Lion Food & Beverage Ventures Limited. Parkson will own 91 per cent of the business, AUMH the balance.

    In a stock exchange announcement, Parkson said the group is undergoing a business transformation in China from a traditional department store model into a lifestyle concept retail business.

    “Our aim is to enhance our customer experience by offering a quality shopping, catering and entertainment experience that encourages repeat customer patronage.

    “F&B is an important component to the shopping experience that the group is offering to its customers. Developing the F&B sector will provide synergies with the group’s existing retail business.”

    The partnership will allow Parkson to leverage AUMH’s expertise and brand resources in the F&B sector.

    “Introducing F&B services will be a major strategic move for the group.”

    AUMH operates restaurant chains in Malaysia under 12 self-owned and franchised brands, including Johnny Rockets, Quiznos and The Library Coffee Bar. It is 60 per cent owned by a subsidiary of Parkson.

    The company has 60 department stores in 36 cities in China.

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