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Tag: Retail

  • Retail trends to look forward to in 2019

    Retail trends to look forward to in 2019

    Retail industry in India is undoubtingly one of the fastest growing retail industry in the world. It is the largest among all industries accounting to 10 percent of the country GDP and employs around 8 percent of the workforce. The retail industry is an experiential motley that is currently going through a robust transformation. Be it employing new technologies or exploring new store formats, revamping business strategies or creating personal experiences; retailers are indeed getting ready for the future by looking beyond conventional retail and evolving along with their modern consumers.

    India is also expected to become the world’s fastest growing e-commerce market, driven by robust investment in the sector and rapid increase in the number of Internet users.

    As the opportunities are immense, let’s take a look what retail trends the stalwarts think will rule in 2019:

    – Customization – The need for customized products and services is increasing thereby pushing the demand for personalized goods and services. With a pragmatic approach, the interface between companies, brands and customers will improve. Social media conversation tracing is going to be trending in 2019, which is a ground-breaking path to the future of handling customer behavior for tailor-made solutions. Also, studies reveal customers come down in favor of personalization — up to a point. They enjoy seeing products and deals personally relevant to them.

    – Brand Experience – It’s not just about selling the products to the customers but also providing them with the best experience too. Most retailers recognize this shift, but the majority struggle with strategies to transform their organization to deliver on consumers’ increasingly demanding expectations. Emerging online brands naturally seek to disrupt traditional ways of doing business and developed digital-first models that have created better experiences.

    On the other hand, established retail brands are burdened with legacy systems that are not optimized for today’s environment. The core – people, service, and experience – are strength to maintain and to satisfy today’s consumer they must integrate the flow of information and resources across the networks of employees, stores and partners.

    Hence, experiences will make a compelling occurance that consumers will always remember and be more than happy to share with one another.

    – Customer Retention – Customer retention is often far more effective and profitable than customer acquisition. An individual shopper want personal recognition. While loyalty programs offer rewards to existing customers the challenge is the acquisition of new customers. Innovation in content is the key to retaining and acquiring customers.

    – Retailers that step up their social media strategies will thrive – The rise of Instagram Stories, Facebook Live and messenger apps will fundamentally change how retailers interact with consumers online. Simply posting photos or updates on a brand’s social media handles won’t work anymore. Retailers will need to up their social media game and use social networks and apps to tell stories and engage with fans in real time.

    – Display – Retail displays is a strategic aspect of the business that can help attract customers, retain their interest, and increase sales. Visual merchandising helps to set a brand apart from competition by creating attractive and fascinating windows that can pull the consumer in to the store. Effective retail displays attract potential customers to the store. When designing displays, choose engaging colours, unique décor and stock arrangements to appeal both the head and the heart of customers.
    Once the brand has attracted potential customers, the brand can Improve chances of making a sale by doing research to see what works in other retail spaces, and keeping an eye on how customer traffic flows through the store.

     

  • Lifestyle-curation bookstores are changing

    Lifestyle-curation bookstores are changing

    In recent years, bookstores have been disappearing at a fast rate. Aside from major franchise bookstores in downtown areas, many small, neighborhood bookstores have closed, forced out in the digital era. But lately, bookstores have been returning in different forms. New bookstores sell more than just books, offering a wide range of goods from stationery, food and drinks to various merchandise — anything related to lifestyle.

    The trend started with the Kyobo Book Centre, the nation’s largest bookstore franchise, following the model of Tsutaya Books. The Japanese bookstore chain established a successful business model, attracting consumers who may not necessarily be interested in books with its retail products and in-store restaurants.

    The business went against the prejudice of a bookstore as a place where you a person just buys books. Providing comfortable seats for people to read, it helped create a larger reading population.

    Following Kyobo Book Centre’s success, more bookstores opened, offering more products and services than just books. They bill themselves as lifestyle-curation bookstores, or culture complexes.

    Arc N Book, which opened last month in central Seoul, deems itself as a city culture complex that introduces books and lifestyles.

    The bookstore has four themed sections: Daily, Weekend, Style and Inspiration. The themed sections provide related products. For instance, the Daily section’s theme is currently black tea. Along with related books, the section displays tea leaves and tea bags for sale.

    On Dec. 15, the bookstore bustled with visitors. While some lounged with books in hand, others photographed the well-decorated space. The “Harry Potter”-styled archway, a book tunnel, was the hottest photo spot.

    “We are strong in foreign books. Foreign-language books take up 7 percent of our books, while it is usually around 2 percent at other bookstores,” said Kim Ji-in, a representative from OTD Corp., which operates Arc N Book.

    “We have around 30,000 books, which may not be big compared to other bookstores. But we are more about curating special books that cannot be found easily,” Kim said.

    Looking at the crowded bookstore filled with people reading, taking photos or sharing quality time with friends, a question popped into mind: Do people really buy books here? You could just grab a book, sit on a comfortable sofa and read for hours.

    According to Arc N Book, sales have been steadily growing since its opening. With encouraging results, the corporation will open another bookstore in Seongsu-dong in eastern Seoul in January. The bookstore, however, aims to be about more than just sales.

    “As a business, we, of course, have to create profit. But it’s not just about that,” Kim said. “We hope to curate a lifestyle, to show people a new way of living and reading.”

    Another question: Does the popularity of such bookstores really mean the reading population is increasing? At Arc N Book, it is clear not everyone comes to read. Some lay not even a single finger on the books.

    “At least these kind of places make people actually go to bookstores. Without these places, people will not be exposed to books at all,” said an official from GimmYoung Publishers, a big player in the publishing industry here.

    “Though they might not buy books right away, they experience the reading culture and learn that people read for leisure. In the long run, they can become future consumers,” the official said.

    Though a similar bookstore, the atmosphere at Choi Ina Books is quite different from that of Arc N Book. It is much quieter, less crowded — more of a library-like atmosphere.

    The bookstore in Seolleung, southern Seoul, is small in size but that doesn’t mean that its book curation ability is weak. Rather, it is all about professional curation here.

    In the publishing industry, Choi Ina Books is one of the most popular bookstores in Seoul. Choi, who retired as a copywriter at Cheil Worldwide, a major advertising firm in Korea, opened the bookstore to share her perspectives and inspirations with the wider public.

    Books in the curated section have been selected by Choi and professionals in the advertising industry. The books also come with handwritten cards that explain why the particular book was chosen and a simple profile of the recommender.

    Here, only purchased books can be brought into the in-store cafe upstairs.

    For those who don’t seek ownership, though, another reading space is available downstairs. It’s a library decorated like the private study of a well-cultured intellectual.

    The library can be used at a price of 14,000 won (US$12.40) for an hour or 22,000 won for two hours. The price includes a cup of coffee and snacks. Though a bit pricey, the space is frequented by office workers in the area seeking some alone time during the day, according to the bookstore.

    Another example of this ilk could be the Hyundai Card libraries. The credit card company currently operates four library-concept establishments across Seoul, each centered on different themes: cooking, travel, design and music.

    Built to be hubs of inspiration and thought in their respective fields, the establishments curate diverse books, including foreign specialty publications that cannot easily be found in Korea. They are open exclusively to Hyundai Card members.

    Though billed as libraries, the establishments neither lend books nor sell them. The books can only be read at the libraries, which also run various programs related to their respective themes.

    For instance, the Cooking Library runs cooking classes as well as self-cooking sessions. The Design Library and Travel Library offer talk sessions. At the Music Library, visitors can also learn to use the deejay booth.

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  • 2Bme launches new store in Acropolis Mall India

    2Bme launches new store in Acropolis Mall India

    2Bme, the private label apparel line from RP-Sanjiv GoenkaGroup, recently launched their second exclusive brand outlet at Acropolis Mall, Kolkata. The 2000 sq. ft. store on 2nd floor at Acropolis Mall, Kolkata is the latest addition to the retail network of 2Bme after the launch of the first EBO in Quest Mall last year.

    The store showcases an exclusive western casual clothing line from 2Bme embodying the brand’s vision of providing ‘contemporary fashion for your every day needs’.

    On the occasion of the store expansion, a 2Bme spokesperson said, “We will look at opening 10-12 EBOs of 2Bme in prime malls of Kolkata, Delhi-NCR and Hyderabad. Recently we also signed on Ranbir Kapoor and Shraddha Kapoor as brand ambassadors and this  is helping us create an exclusive entity for our brand.”

    Store Design, TG & Future Plans

    With a minimalist yet chic design, the EBO has a contemporary
    look and feel giving a comfortable shopping experience each time a customer walks in.

    Targeted at the age group of 22-35, the brand has everyday casual wear in a very affordable price range between Rs. 499 – Rs. 1,999. The store offers a huge collection of western clothing line including – tops, graphic t-shirts, dresses, trousers, denims, shorts, joggers, and light weight sweaters for both men and women.

    “2Bme has around 15,000 styles and we have sold more than 3 million pieces so far. The brand has already crossed the mark of
    Rs 100 crore within one-and-a-half-years of its launch and it is likely to garner a turnover of Rs 300 crore in next three-four years,” the spokesperson said.

    At a later stage 2Bme will be also made available through large format MBO’s and e-commerce platforms.

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  • How the retail industry has fared in 2018

    How the retail industry has fared in 2018

    The overall retail market in India 2018 stood at Rs 43,251 billion and is forecast to grow by 6.4 percent CAGR in 2018-2023. Retailing in India still predominantly takes place in physical stores and shopping behaviour between urban and rural consumers continues to be vastly different. Smaller independents (both grocery retailers and non-grocery specialists) continued to dominate the landscape they faced growing competition from modern outlets opening in out-of-town shopping centres and malls capturing the Tier II & III markets.

    This year, we witnessed modern retailers launch interesting payments schemes and effective pricing strategies to propel the sales. For example, leading retailer Future Group launched its payment wallet Future Pay which can be used in all its retail brand outlets. Retailers also capitalised on growing acceptance of modern retail by developing new marketing schemes and strategies to attract shoppers.

    Additionally, multi-channel strategies remained key for retailers as they are developed online platforms that are also smartphone and tablet compatible to drive Internet sales.

    Furthermore, retailers also increased their new private labels products. This is was done for certain grocery categories like: packaged foods, non-alcoholic drinks, beauty and personal care and home care products.

    Finally, subscription-based retailing practices started to pick up in 2018. Although still relatively niche, and limited only to urban India, the subscription-based model for beauty and personal care and consumer health became quite popular in metropolitan cities.

    What are the retail trends that are going to rule the roost in retail in 2019?

    – Retailing will continue to offer potential for grocery retailers. Convenience stores and forecourt retailers are likely to continue to see healthy growth rates as their format can meet the demands arising from changing lifestyles by offering more convenient shopping solutions, both in terms of location, business hours and product range.

    – Given the rising maturity of retailing in metros/urban areas, retailers have slowly started to focus on the semi-urban consumer base. This has resulted in the slow and steady urbanisation of shopping styles amongst semi-urban consumers.

    – As the labour crunch and high rentals continue to affect the retail landscape in India, hypermarkets are looking to ramp up investment on self-service technology and automation to reduce costs and improve customer experience. Some hypermarkets chains have implemented self-service kiosks at checkout counters, generally with positive results because of reduced waiting times. Investments have also been made into automated ordering systems, which has helped brands reduce storage space at outlets, hence control rental costs. This can be expected to grow during 2019 as well.

    – Furthermore supermarkets are likely to push the broadening of key product categories, such as organic fresh food, soft drinks and packaged food. They are also likely to further narrow the line between foodservice and grocery retailing, with the introduction and integration of new foodservice elements within their stores.

    – Non-grocery retailing will likely be impacted by the growth of internet retailing at the expense of specific store-based retailers and other non-store channels. Consumers are expected to increasingly shop and research products online, with the popularity of smartphones making mobile-optimised sites and shopping apps crucial in attracting consumers. Moreover, social media will be used more often to alert consumers to attractive price promotions and build interest in new product launches. Also, omni-channel strategies will remain key for non-grocery retailers.

    – Non-grocery retailers will increasingly integrate their online brand information with store inventory, as consumers expect to find the same products in both channels. Moreover, to minimise showrooming, players will also need compelling reasons for customers to buy their brands in store, whether in terms of product selection or price competitiveness.

    – The entry of Amazon and Flipkart could stimulate a much-needed increase in the competition, which will bring both opportunities and threats for existing food and drinks retailers in India. Amazon with ‘Amazon Pantry’ and Flipkart with ‘Flipkart Supermart’ eventually launched its online grocery business in 2018. Millennials and affluent consumers were encouraged to change from shopping in physical stores to online in 2018 with convenience and heavy discounts on offer. Also, with increasing investments from player such as Amazon who are expected to buy skate in Future Retail and PayTm who have partnered with BigBasket and Future Group to strengthen its online grocery business, the food and drinks internet retailing is expected to show tremendous growth in 2019.

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  • Visa and The Mall Group collaborate to drive the future of retail in Thailand

    Visa and The Mall Group collaborate to drive the future of retail in Thailand

    Visa, the world’s leader in digital payments, and The Mall Group, Thailand’s leading retail and entertainment complex developer, last week announced a new long-term partnership set to drive the future of retail in Thailand.

    Building on their existing relationship, this partnership will see The Mall Group and Visa develop personalised shopping experiences for consumers, using Visa’s capabilities and exploring new technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), biometrics, as well as data analytics to understand changing consumer behaviours.

    Chris Clark, Visa’s Regional President for Asia Pacific, said: “We believe payment technology can be a key differentiator for The Mall Group helping it to deliver a faster, more convenient and more personalised shopping experience for consumers. We’re looking forward to working together to drive payments innovation at The Mall Group’s expansive locations across Thailand.”

    Supaluck Umpujh, Chairwoman of The Mall Group, said: “The partnership with Visa represents a significant step into a new era of retail where customer experience is at the heart of everything we do. Our goal is to explore and leverage the latest innovations that will add value to our business. This will consequently benefit our shoppers and help strengthen our position as a world-class shopping destination among both local and international visitors.”

    Studies have shown that by 2020 AI will be responsible for managing 85 percent of retail customer interactions and as many as 100 million consumers will use AR to create a more novel shopping experience.

    For decades, Visa, together with its merchant partners, has consistently invested in growing electronic payments in Thailand. This has included educating consumers and merchants on the benefits of electronic payments, expanding the acceptance of electronic payments, and introducing new technologies to enhance the payment experience and make it more secure, such as EMV, contactless payment technology, tokenisation, and Visa QR payments.

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  • Miniso Canada is collapsing

    Miniso Canada is collapsing

    Miniso Canada is on the brink of bankruptcy after an action brought against it by its Chinese parent company alleging fraudulent business dealings and the transfer and hiding of assets. The extraordinary situation was revealed by Canadian website which in its last update reported the Canadian subsidiary had reached a preliminary agreement with the Chinese company to avoid the move.

    Miniso China has declined comment.

    Citing court documents, Miniso China is owed C$20 million (US$14.7 million) and had retained a lawyer to commence legal action in British Columbia courts to recover the amount.

    Minso launched in Canada last year with plans for 500 stores within five years. To date it has opened 48.

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  • Vietnamese consumers among the most optimistic in the world

    Vietnamese consumers among the most optimistic in the world

    Vietnamese consumer confidence has reached a global high thanks to optimism over jobs and personal finances. The Vietnam Consumer Confidence Index has risen by nine points from the second quarter to reach an all-time high at 129 points in the third quarter of 2018, according to the Global Consumer Confidence Survey.

    The survey results have been released by research association The Conference Board in collaboration with global market research company Nielsen.

    The survey ranks the country in second place in the world in terms of consumer confidence, behind India at 130 points.

    While most Asian economies are vulnerable to the ongoing trade dispute between China and the U.S., Vietnam is a possible exception, as it may attract parts of the global value chain that currently run through China, the report said.

    The rise in the confidence index is also due to greater optimism about employment prospects, personal finances and the level of willingness to spend.

    Eight out of ten Vietnamese surveyed said that they were positive about their job prospects, up nine percentage points from the second quarter.

    Eighty-two percent of respondents expected their personal finances will be good or excellent over the next 12 months, up 6 percentage points from the second quarter.

    The majority of them, 63 percent, said that the next 12 months are a good time for them to buy the things that they want and need, 8 percentage points higher than the second quarter.

    Concerns about having a stable job and health (both at 40 percent) remained the top concerns among Vietnamese consumers. The national economy came in third at 27 percent, 5 percentage points higher than the previous quarter.

    Vietnamese consumers continue to take the lead globally when it comes to saving, the survey found. Seventy-two percent of respondents said that they would save their spare cash, up two percent from the second quarter.

    But Vietnamese people are also more willing to spend on big-ticket items. The percentage of people who would spend their spare cash on home improvements increased 10 percent from the second quarter to 48 percent.

    Over half of them, 53 percent, want to spend the money on new clothes, up 7 percentage points from the second quarter.

    Nguyen Huong Quynh, managing director of Nielsen Vietnam, said that when consumers faced multiple concerns, their purchasing decisions will be affected and businesses should always keep a close track on changes in the spending habits of consumers.

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  • First Binance Blockchain Week Set for Singapore Next Month

    First Binance Blockchain Week Set for Singapore Next Month

    About 2,000 people from around the world are expected to attend the inaugural Binance Blockchain Week in Singapore on Jan. 19-22. The conference, which will take place at the Sands Expo and Convention Centre in Marina Bay Sands, is presented by Binance, the world’s leading cryptocurrency exchange.

    The high-profile event will serve as a platform to bring together regulators, investors, academics, entrepreneurs and technologists to discuss the current blockchain ecosystem and encourage sustainable growth in the industry.

    Binance Blockchain Week will feature more than 70 speakers, including thought leaders, top executives, academics and heads of state in a productive, yet exciting program filled with keynote speeches, panel discussions, fireside chats and exclusive networking events.

    Confirmed speakers include Changpeng Zhao, the founder and chief executive of Binance; Genping Liu, partner at Vertex Ventures; Justin Chow, head of business development, Asia at Cumberland; and Sonia Bashir Kabir, managing director of Microsoft Bangladesh, Myanmar, Nepal, Bhutan and Laos.

    “We are thrilled to host the first ever Binance Blockchain Week in Singapore, the finance and technology hub of Asia. Gathering the most notable players and thought leaders in blockchain, this will be a defining event. We look forward to many thought-provoking discussions and debates on how we can further work together to move the industry forward,” Zhao said.

    There will also be an expo featuring more than 50 booths for sponsors to showcase the best blockchain and cryptocurrency technologies.

    Secure Asset Funds for Users Hackathon

    The inaugural Binance SAFU Hackathon, which aims to seek innovative blockchain solutions to secure crypto assets, will take place at the offices of PricewaterhouseCoopers Singapore in Marina One East Tower on Jan. 19-20.

    The panel of judges includes PwC, blockchain accelerator program Tribe Accelerator and Binance Labs. Participants will have the opportunity to receive mentorships from senior leaders at companies such as the Ethereum Foundation, Primitive Ventures, Earn.com, Binance Labs and IDEO CoLab.

    Individuals and teams interested in participating in the event can submit their applications between Dec. 10 and Jan. 6.

    Twenty developer teams will be selected via pre-hackathons and direct registration on the event website. Pre-hackathons will be held around the world between December and early January.

    Only winning teams will qualify for free passes to the final SAFU Hackathon in Singapore.

    The teams winning the final will share a prize pool of $100,000 in Binance Coin (BNB) courtesy of Binance.

    For more information, check out the Binance Blockchain Week Facebook page or the cryptocurrency exchange’s Twitter profile.

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  • World Bank cuts Malaysia’s 2018 GDP growth forecast again

    World Bank cuts Malaysia’s 2018 GDP growth forecast again

    The World Bank has again revised downward its projection for Malaysia’s 2018 gross domestic product (GDP) growth to 4.7% from 4.9% after taking into account factors such the rigorous rationalisation of expenditure by the government and slowdown in private and public investment. It last cut the country’s GDP growth forecast in October, to 4.9% from 5.4%.

    Malaysia’s third quarter GDP growth moderated to 4.4%, bringing about a nine-month expansion of 4.7%.

    Despite a moderation in growth, the World Bank believes that the Malaysian economy remains resilient and continues to be anchored by private consumption, although it has been cooling down after the reintroduction of the sales and service tax.

    The key drivers for private consumption are stable labour market conditions, cost of living aid and tax refunds payment.

    Private investment in the manufacturing and commodity sectors are also expected to be sustained.

    Speaking at the launch of the World Bank’s Malaysia Economic Monitor on Realising Human Potential Report, World Bank Group economist Shakira Teh Sharifuddin said Malaysia’s economic growth is projected to remain flat at 4.7% in 2019, with external factors such as current trade tensions and increased volatility in the financial and commodity markets expected to weigh on the overall economy.

    In addition to the escalating trade tensions, monetary normalisation in advanced economies, high dependency on oil revenue and high level of public debt are seen as potential risk for the government.

    The percentage of the federal government’s revenue to GDP has seen a steep decline between 2012 and 2018, falling from 21.4% to 16.2%. In 2019, the share of revenue to GDP is expected to be reduced further to 15.1%.

    This, Shakira said, leaves the government with limited space to respond to economic shocks.

    In the near term, the government is expected to rigorously embark on fiscal consolidation measures with expenditure expected to decline to 18.1% of GDP from the 2018 estimate of 20.3%.

    Shakira said that while the introduction of new taxes in the budget is welcomed, the government should relook the incentive mechanisms.

    On another note, the World Bank stressed on the need for Malaysia to accelerate the development of its human capital if it wishes to join the ranks of a high-income nation.

    While Malaysia, which ranked 55th out of 157 countries in the Human Capital Index, fared well in some areas, there is room for improvement in certain areas, noted the report.

    It also states the prevalence of stunting among Malaysian children which affect more than one in five Malaysian children, a key indicator of malnutrition. In the absence of renewed efforts to develop human capital, a child born today in Malaysia will only reach a productivity level of 62%.

    In terms of education, the 12.2 years spent by Malaysians in school only equates to the 9.1 years learning outcome of school goers in the highest performing system.

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  • Asia is leading the global digital retail market

    Asia is leading the global digital retail market

    Retail executives looking to understand the future of retail should take a close look at Asia, where retail is booming as Asia is leading in terms of retail growth. The growth rates are twice the rate of the rest of the world, and e-retail growing at three times the rate.

    Asia is followed by Europe and the US, with China, Korea, and India at the forefront.

    In 2017, China’s online retail penetration was 20 per cent and its CAGR (13-17) was 33 per cent. In comparison, the US achieved an online retail penetration rate of 12 per cent in 2017 and a CAGR (13-17) of only 11 percent. Most dramatic is India, which had a CAGR (13-17) of 53 percent, highlighting the rapid growth seen in the market.

    Market conditions have allowed for swifter digital penetration than any other region worldwide and have led to the creation of ecosystems for retailer and consumer ease, revealed Bain & Company’s latest Asia retail report.

    According to the report, retail ecosystems comprise vast communities of consumers, retailers and partners that are rapidly reshaping the retail landscape. Alibaba and Tencentlead the best-known Asian ecosystems; however this phenomenon is not limited to China.

    Ecosystems deliver a very sticky consumer proposition by combining services like e-commerce, chat, streaming, gaming or payments in a single platform or app, which is becoming almost universally adopted by shoppers, according to the report.

    A large customer base is incredibly attractive to retailers as a channel to a critical mass of customers. But more importantly, the ecosystem also provides retailers with access to hard-to-replicate capabilities, such as last mile fulfillment, data analytics and cloud services, through their platforms. Increasingly, these ecosystems are deploying their capabilities into bricks and mortar retailers as well as online, meaning they can exert significant influence over the retail sector.

    “What we are seeing is the emergence of scale open retail ecosystem platforms across the Asia Pacific region, that offer retailers a compelling alternative to building and scaling their own capabilities,” said report author Melanie Sanders, Bain & Company partner. “The scale of these ecosystems means that we are seeing a battle emerge between ecosystem platforms in key markets, with the potential for a winner-takes-all situation.

    However, the extent and pace of ecosystem development will not be uniform across geographic markets. The report has outlined ten market factors, which has explained why ecosystems have developed so rapidly for some Asian countries, including social factors such as urban density and age structure through to retail market conditions such as the scale/maturity of physical retailers in the country.

    “The emergence of retail ecosystems is raising a new set of choices for retailers about how to participate in this new retail landscape. The emergence of these ecosystems presents huge opportunities for those playing to win in these markets, but at the same time has the potential to completely change the rules of the game and may mean a loss of control,” the report said.

    “Retailers face a confronting set of choices around how to respond the rise of retail ecosystems. At the heart of the decision will be whether the retailer has the capabilities, capital and customer franchise to compete against an ecosystem,” said Jonathan Cheng, report author and principal at Bain & Company.

    As digitisation of the retail sector continues to expand in Asian and global markets, ecosystems will continue to evolve based on the needs of both the consumers and retailers, the report added.

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  • October Singapore retail sales static

    October Singapore retail sales static

    October Singapore retail sales inched up by 0.5 per cent year on year, after excluding motor vehicle sales from the data.

    Month-on-month they fell by 2.1 per cent, reaching S$3.7 billion (US$2.69 billion).

    Online retail sales breached the 5 per cent threshold of total retail sales at 5.3 per cent for October.

    By category, sales by petrol stations soared the most, up 11.4 per cent year on year, however when the effects of price changes was removed from the data, the increase was a more moderate 1.5 per cent.

    Sales of medical goods and toiletries rose 3.4 per cent on the back of cosmetics, with furniture and homewares up 1.5 per cent.

    In contrast, sales in department stores and supermarkets decreased 3.6 per cent and 2.9 per cent respectively. Retailers of optical goods and books and recreational goods declined by 1.9 per cent and 1.8 per cent.

    Sales of food and beverage services rose 1.1 per cent, with food caterers recording a 5.6 per cent increase in turnover, other eating places (such as cafes) improving by 3.8 per cent, and fast-food outlets by 3.2 per cent.

    Restaurant turnover, however, was down 3 per cent.

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  • Fortnum & Mason Asia sales soars boosted by Hong Kong

    Fortnum & Mason Asia sales soars boosted by Hong Kong

    Fortnum & Mason Asia sales are soaring, prompting the UK luxury-food retailer to plan more stores. In Hong Kong, the chain achieved a 55 per cent increase in sales in the year to July, helping it book a sixth consecutive year of double-digit sales and profit growth. Two new stores are now trading in South Korea – in Shinsegae Gyong-Gi and Shinsegae Gangnam – and options in other Asian markets are being assessed. Another new store opened in London.

    Global sales for Fortnum & Mason grew 12 per cent, reaching £126 million (US$161 million), while profit soared 26 per cent to £9.6 million. The company is now delivering products to a record 125 markets worldwide from its online sales channels.

    Sales at its flagship store in London rose 10 per cent – during a time most department stores in the UK have been struggling to maintain sales growth and profits. Travel retail stores in Heathrow and St Pancras International train station rose 12 per cent.

    “This year has not been without its challenges, but we’re proud to report another exceptional trading period,” said Fortnum & Mason CEO Ewan Venters.

    “By being faithful to our heritage and pedigree, focusing on the creation of extraordinary products and exceptional service, and delivering our world-renowned products to customers anywhere in the world, I am pleased that we are able to meet the growing demand for quality and impeccably-sourced products.”

    He said he was “particularly pleased” with the increased sales of Fortnum & Mason Asia and has great confidence in the two new spaces in South Korea.

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  • Singapore Changi Airport extends key DFS

    Singapore Changi Airport extends key DFS

    Key Changi Airport duty-free liquor and beauty concessions held by DFS and Shilla Travel have been extended for two years. The extensions will start from 2020 after the expiration of their current six-year concessions. Over the past four years, the airport’s two core-category concessions have involved pioneering retail concepts including unique duplex stores and the world’s first airport integrated duty-free zone.

    Executive VP of commercial at Changi Lim Peck Hoon said: “We are very pleased to continue our partnership with DFS and The Shilla Duty Free for another two years. Their passion for the travel retail industry continue to deliver new ideas and novel retail concepts at Changi Airport, and were instrumental in driving sales growth over the past four years.”

    A release from the company stated that Changi plans to leverage new technologies and innovations for a seamless retail experience when passengers shop from online to offline, from before they fly to the time they board.
    The extended tenancy terms for the liquor concession will commence from April 9, 2020 until April 8, 2022, covering 18 stores and spanning more than 8000sqm of retail space in Terminals 1, 2, 3 and 4.

    For the beauty concession, the extended tenancy terms will begin from October 1, 2020 to September 30, 2022, covering 22 outlets and spanning more than 7400sqm of retail space across Changi Airport’s four terminals.

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  • Hong Kong retail rent rises (too) fast

    Hong Kong retail rent rises (too) fast

    Prime Hong Kong street-shop rents rose 4 per cent in the first three quarters of this year, ahead of the up-to 3 per cent rise prediction by Savills a year ago. In a third-quarter real estate briefing released yesterday, Savills said shopping-centre retail rents, which Savills expected would fall as much as 5 per cent, have actually risen 2 per cent year to date.

    Savills expects prime Hong Kong street-shop rents and shopping centre rents will rise by about 2 per cent next year.

    “In the retail market, despite the headwinds of a weaker RMB, more competition from regional cities and elevated new supply in the New Territories, rents will rise modestly,” the company predicted.

    “New infrastructure in the form of the High Speed Rail Link and the Macau Bridge will improve accessibility for mainlanders, while domestic consumption expenditure is expected to remain reasonably robust. Online retail continues to make limited gains in the Hong Kong market.”

    Savills said prime street shops proved the only real estate category in Hong Kong to post a decline in sale value on a per square foot basis, falling 3 per cent – a stark contrast to the 10-12 per cent rise in flatted factories and warehouses, and 8 per cent rise in luxury apartments.

    The company predicts prices for prime high street shops are likely to fall by up to 5 per cent next year.

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  • October retail sales tide in Hong Kong turns up

    October retail sales tide in Hong Kong turns up

    October retail sales in Hong Kong rose by 5.9 per cent year on year, more than double the pace of September, which was affected by Typhoon Mangkhut. A government spokesman indicated that growth in retail sales picked up somewhat in October after a deceleration in the preceding month, supported by the faster increase in visitor arrivals and continued income growth.

    The Census and Statistics Department (C&SD) estimated the total value of October Hong Kong retail sales at HK$39.7 billion.

    After netting out the effect of price changes over the same period, the volume of October retail sales in Hong Kong increased by 5.2 per cent.

    C&SD’s revised estimate of the growth in the value of retail sales in September was unchanged at 2.4 per cent, the lowest figure year to date.

    For the first 10 months of this year retail sales rose by 10.6 per cent year on year, while the volume (netting out inflation) rose by 9.1 per cent.

    The spokesman strong inbound tourism and favourable job and income conditions should continue to support the retail sector in the near term.

    “Yet, consumer sentiment could increasingly be affected by the external uncertainties and weaker asset markets.”

    By broad type of retail outlet (in descending order of the category’s impact on the overall figure) sales of jewellery, watches and valuable gifts increased by 3.3 per cent in October. This was followed by electrical goods and other consumer durable goods, not elsewhere classified (up 16.1 per cent); commodities in department stores (up 3.5 per cent); apparel (up 2.3 per cent); medicines and cosmetics (up14.9 per cent); other consumer goods, not elsewhere classified (up 12.7 per cent); motor vehicles and parts (up 13.6 per cent); fuels (up 10.3per cent); footwear and accessories (up 9.3 per cent); books, newspapers, stationery and gifts (up 5.8 per cent); furniture (up 0.8 per cent); Chinese drugs and herbs (up 0.6 per cent); and optical shops (up 3.2per cent).

    The only categories to record a decline in sales were commodities in supermarkets, down 0.9 per cent, and food, alcoholic drinks and tobacco, down 2 per cent.

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