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Tag: Retailers

  • Hong Kong retailers host 93,000 applications for Covid-19 support

    Hong Kong retailers host 93,000 applications for Covid-19 support

    The Hong Kong government has nearly completed vetting Covid-19 support applications under its Retail Sector Subsidy Scheme, which drew around 93,000 applications.

    Applicants are being gradually notified of results, with about 66,000 having already been contacted, two-thirds of which were successful. The remaining applications are currently under processing with around 10,000 required to submit further information or documents to determine whether they are eligible for the scheme.

    The scheme has thus far approved roughly HKD3.5 billion (US$451.5 million) in Covid-19 support for eligible retailers. The majority of unsuccessful cases involved businesses not explicitly engaged in retail, while some applications were duplicates.

    The government anticipates that more than 60,000 applications will eventually be approved under the scheme, broadly in line with the number of establishments in the retail sector as estimated by its Census and Statistics Department.

  • Datalogic Magellan 1500i delivers high-performance scanning for retailers

    Datalogic Magellan 1500i delivers high-performance scanning for retailers

    Datalogic’s Magellan 1500i merges imaging excellence with innovative design in a high-performance presentation scanner ideal for retailers.

    Uniquely user-friendly and powerful, the Magellan 1500i is suitable for all types of retail store, including pharmacies, customer-service counters, kiosks, pop-up stores – and even self-checkouts.

    A compact footprint and discrete cable routing ensure the scanner takes up as little space on counters as possible, maximizing the area left for serving customers.

    Yet, despite it compact size, the Magellan 1500i has a large reading area and a fast sweep. It can read at distances of up to 25 cm and with 1D-sweep speeds of up to 1.5 m/s. This makes scanning 1D, 2D and Digimarc barcodes from printed labels, packaging or mobile phones easy and intuitive.

    Datalogic technology built-in includes soft-red adaptive illumination, minimizing light when it is not needed and adjusting the depth of field to suit the operating environment. And the scanner comes with multiple mounting options, including magnetic, allowing it to be used by both cashier and customer.

    Powerful decoding algorithms provide unmatched performance on a variety of 1D and 2D labels, including hard-to-read, truncated and damaged codes.

    The Magellan 1500i can be used in hands-free stand mode or hand-held mode. When the scanner is placed on a counter, items can be swept past or presented to the scanner. But if an item to be scanned is too large to lift, the Magellan 1500i can also be used as a hand-held scanner.

    When picked up from the counter, Datalogic’s Motionix motion-sensing technology detects the movement and activates an LED aimer. Users simply place the aimer on the target bar code, depress the trigger and Datalogic’s patented ‘Green Spot’ technology provides good-read confirmation. When the scanner is returned to the counter, the scanner automatically returns to stand mode.

    Remote management is supported for OPOS, JavaPOS, Toshiba Remote Management with IBM Systems Director® and Wavelink® Avalanche®. Additional capabilities are available with the value-added features included in every Magellan scanner.

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  • Covid-19 exacerbates apparel-sales down in Japan

    Covid-19 exacerbates apparel-sales down in Japan

    Sales of apparel and accessories at Japanese department stores plummeted 40 percent last month compared with a year earlier.

    The figures were released by the Japan Department Stores Association showing the impact of the coronavirus outbreak on its member businesses. Data showed ¥97,548 million (US$911.5 million) in revenues for the month, compared to ¥243,870 million ($2.28 billion) for March last year.

    According to the association’s data, based on member polls, womenswear sales fell 44.2 percent during the period, with menswear falling 39.7 percent and kidswear 24.9 percent.

    Covid-19 is not the sole factor in the industry downturn, with sales figures already dropping since October last year, well before the coronavirus was discovered.

    The downward trend was aggravated by the Japanese administration’s restrictions on movement and by temporary store closures during the pandemic.

  • One in four Hong Kong retail stores set to close this year

    One in four Hong Kong retail stores set to close this year

    With sales decimated by the coronavirus crisis, and with little support coming from landlords, some 20,400 Hong Kong retail stores will close by year-end, according to research from the HKRMA.

    A study conducted amongst 152 retailers ranging from SMEs through to large chains shows most retailers will have insufficient resources to survive beyond June, even after the first round of government support.

    Respondents to the HKRMA (Hong Kong Retail Management Association) study collectively operate some 3350 stores and account for 23 percent of the territory’s retail workforce.

    So far this year, an estimated 5200 Hong Kong retail stores have closed permanently. With 62,400 retail stores still operating, the HKRMA predicts that a further 6600 stores will shutter between May and August, and another 8600 between September and December – totaling up to 20,400 stores by year-end, including those already closed since the crisis evolved.

    Just half of the retailers responding to the survey said they had received rental relief from their landlords – but four in five had found the support to be inadequate with rent reductions of less than 50 percent.

    Meanwhile, only 16.5 percent of retailers had found the government grant to be useful in their aid, with the amount not sustainable for continued operations in addition to restrictions on how the funds could be used.

    About 40 percent of survey respondents said they can sustain their businesses for only four more months at most, and only 20 percent of retailers for eight months.

    Thousands to lose their jobs

    Nine out of 10 retailers revealed a “severe to medium loss” in their business from the epidemic, more so than the initial impact from the social unrest in the past year. As the sector continues to struggle, two-thirds of retailers had forced workers to take unpaid leave and the majority of the remainder had laid-off workers or imposed pay reductions.

    While the Hong Kong government has implemented a HK$80 billion plan to subsidize employers to pay workers 50 percent of their salaries (capped at HK$9000 a month, or £930), in contrast, the UK government is offering a furlough scheme financing 80 percent of workers’ wages (capped at £2500 per month) during government-enforced lockdown periods.

    The HKRMA calculates that 10,400 employees in the local retail sector lost their jobs in the past three months alone.

    As the Hong Kong government prepares to launch a second round of pandemic-relief funds to businesses, the HKRMA warns that the amount of relief will be insufficient to cover the wages of all retail employees and lay-offs will continue.

    With Hong Kong retail sales already plunging 44 percent in February, the government subsidies have arrived too late, says the HKRMA, because retailers will be unable to continue trading through until the cash arrives in June.

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  • Asian consumer behaviour may change forever after Covid-19

    Asian consumer behaviour may change forever after Covid-19

    New research has shown that some shifts in Asian consumer behavior in response to the coronavirus outbreak could be lasting beyond the pandemic.

    And that is something that should prompt food retailers to act – and in some cases, accelerate – the changes they have already made in response to the crisis.

    The survey, conducted by US management consulting firm McKinsey & Company, is based on research conducted with more than 5000 consumers in Asia across seven countries – Australia, China, India, Indonesia, Japan, South Korea, and Thailand. The data determined that there are four areas within the food industry that may need to be reimagined following the end of the crisis.

    Firstly, food retailers should reimagine the safety, health, and scope of their supply chains.

    Consumers across the countries surveyed appeared to care more about in-store safety and to prefer healthy, locally sourced offerings than they did before Covid-19. Consumers have shown a heightened awareness of hygiene and cleanliness that may remain important in the post-coronavirus period.

    The data on Asian consumer behavior showed an increase in the consumption of products perceived by consumers to be healthy, such as fresh food, eggs, dairy, and bottled water – and a drop in purchases of alcoholic beverages and snacks.

    The research suggests retailers should rethink their offerings and provide healthier, more locally sourced products with a smaller environmental footprint. To meet rising customer expectations, companies should rethink the safety of the customer journey – for example, by using technologies such as self-checkout and cash-free transactions to reduce risks.

    Secondly, retailers should reimagine how technology can enhance delivery services. The survey results show consumers are shifting their food spending online and have yet to return to their normal spending levels for food service. Responses suggest an opportunity for grocers to digitalize their stores.

    Respondents in most countries showed a 30–70 per-cent drop in preferences for dine-in spending and an increase in grocery shopping and purchases of ready-made food in grocery stores, which consumers tend to prefer more than meal delivery from restaurants.

    Consumers are indicating they intend to continue shopping online at the new pace.

    To respond to the current crisis and meet future ones, food retailers should scale up their e-commerce channels and their capacity for home delivery, perhaps by partnering with last-mile players and cold-storage warehouses; by expanding shifts in existing warehouses; by using hybrid picking models or by converting some retail locations into dark stores.

    Thirdly, retailers should reimagine the meaning of value for money. People are currently concerned about the pandemic’s impact on their personal incomes, and consumers are willing to forgo planned future purchases because of uncertainty related to Covid-19. To address these shifts, food retailers should rethink their promotional calendars to safeguard their marketing spending for use only when needed to stimulate demand, either for discretionary products or for post-crisis essentials to meet people’s desire for value.

    Finally, retailers should reimagine loyalty. During the crisis, Asian consumer behavior has reflected loyalty to retailers and brands offering essential products in their assortments. The location and availability of goods have been the primary reasons why consumers have changed stores, rather than promotions or pricing.

    Retailers are advised to determine which stores are being affected disproportionately by customers shifting to other primary stores. Targeted marketing may help bring these customers back, as would retailers finding a way to better communicate the efforts they are taking to support customers and their societies more broadly.

    These measures should help retailers be better equipped to provide employment opportunities to people who are currently out of work, reshape their industry ecosystem, and work closely with business partners on how to operate under the new normal.

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  • Coronavirus lockdown to slash Malaysian retail sales

    Coronavirus lockdown to slash Malaysian retail sales

    The six-week-long coronavirus lockdown is expected to slash Malaysian retail sales by 60.7 percent this month as non-essential stores are forced to close.

    Retail Group Malaysia, which calculates data on behalf of the Malaysia Retailers Association, estimates that retail sales for the full year will drop by 5.5 percent, should the government’s Movement Control Order be lifted at the end of this month. It has already been extended from March 18 until April 28

    RGM’s MD Tan Hai Hsin told The Edge that the majority of the nation’s retailers are recording zero sales this month. “This has never happened before in history”.

    While online sales have surged in Malaysia since the coronavirus struck the nation, and consumers are spending more on food and groceries, categories like jewelry, furniture and luxury goods have been decimated.

    Last year, Malaysian retail sales grew by 3.7 percent to RM107.5 billion (US$24.8 billion), but RGM is now forecasting RM101.6 billion ($23.45 billion) for the full year, a figure which must take into account a rebound once the lockdown order is lifted.

    The MRA estimates 209,000 stores have been forced to close during the lockdown and 90 percent of stalls and markets have been affected, which previously accounted for 63 percent of the nation’s total retail sales. The remaining 126,000 stores classified as essential include supermarkets, hypermarkets, convenience stores and pharmacies.

    Meanwhile, RGM has estimated that operating costs, including staff and store overheads, are likely to reach RM20.48 billion (US$4.7 billion) during the lockdown which retailers will have to carry in the absence of sales.

    It is, as yet, unclear the volume of online sales during the period and whether these will help mitigate in part the sales decline of any non-essential retailers.

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  • Retail real estate investors in Hong Kong searching massive discounts

    Retail real estate investors in Hong Kong searching massive discounts

    Retail real estate investors in Hong Kong are seeking discounts ranging from 30 to 50 percent compared to previous peak prices, according to data from real-estate company Savills.

    However, for now, even fewer retail landlords are willing to entertain such price reductions, preferring to hold on to their assets, according to the company.

    “Volumes in both the office and retail investment markets are tapping new lows making price discovery problematic, but deals are still being done, even in these tough market conditions,” said Peter Yuen, MD, head of investment & sales.

    “A more protracted recovery will increase the likelihood of finding distressed stock at deep discounts later in the year.”

    The global spread of the virus, stricter controls on borders and limits on social activities have fuelled a dramatic reduction in retail sales and visitor arrivals in the territory, which fell by 96 percent in February. Savills said retail landlords are finding it hard to retain tenants and sustain occupancy even with deeply discounted rents and generous rental concessions.

    Prime high-street shop prices fell by 6.5 percent during the first quarter of this year according to Savills, with Tsim Sha Tsui and Mong Kok – two shopping districts popular among mainland visitors – registering greater declines.

    “The retail market peaked in 2014 and has seen a particularly steep adjustment since then,” said Sharon Fong, senior director, retail sales, investment & sales.

    “More recently the social unrest and the virus has been a perfect storm for the sector while at the same time underlying fundamentals are being disrupted by e-commerce so even after the outbreak, investors are unsure what future we will emerge into.”

    Simon Smith, a senior director, research & consultancy, added that while commercial investment sentiment has hit a new low in Hong Kong, China’s cautious economic recovery, the benign interest rate environment, tight short-term commercial supply conditions and further rounds of fiscal stimulus may help to sustain price levels affecting retail real estate investors in Hong Kong.

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  • Sustainability concerns on hold as Covit 19 virus wreaks havoc

    Sustainability concerns on hold as Covit 19 virus wreaks havoc

    The coronavirus pandemic has slowed progress on sustainability issues in the retail industry, says GlobalData analyst Emily Salter.

    While sustainability was a buzz word last year and set to be a key focus of retailers through 2020, progress has now all but halted, says Salter.

    “Making changes to materials, logistics and production processes to improve the sustainability of products and operations will slow, as sustainability is no longer top of retailers’ and consumers’ agendas. This is due to long-term adjustments being costly and many non-food retailers will be financially unstable as they emerge from this crisis after a significant period of low or no sales,” she explains.

    Before the coronavirus pandemic brought retail to a standstill in most countries around the world, there were clear signs shopping habits were changing. For example, a survey undertaken in the UK last year showed 74 percent of consumers would prefer to shop at a supermarket that had more loose fruit and vegetables than packed. However, nowadays, people are seeking security and safety and there are signs shoppers prefer produce to be wrapped.

    There has also been a dramatic increase in sales of hand sanitizers and anti-bacterial gel in plastic bottles. Salter says consumers are showing little regard for plastic-free alternatives or refills.

    “Sustainability and single-use plastic will be less important to many consumers in the short term where hygiene and cleanliness is more of a priority to prevent the spread of the virus.

    “Another issue is the problem of unsold stock that retailers will be stuck with, as all non-essential stores and some websites have ceased trading temporarily,” she says.

    “Some items and ranges may be able to be sold at a later date, but this may not be the case for highly seasonal and trend-led pieces, raising questions about how these items will be disposed of.

    “Given Burberry came under fire for burning stock in 2018, retailers must be careful how they deal with this issue.”

    Accessories label Kurt Geiger took the initiative to donate some of its surplus stock to National Health Service staff excess, which reduced inventory and generated positive media exposure.

    “Although sustainability will slowly become more important again once the spread of Covid-19 has ceased, the increased awareness of cleanliness and germs is likely to remain at the forefront of shoppers’ minds and will continue to hinder the growth of sustainability initiatives, such as refill stores,” Salter concludes.

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  • South Korean duty-free stores cut hours since travel restrictions

    South Korean duty-free stores cut hours since travel restrictions

    South Korean duty-free stores are electing to temporarily close for business as the coronavirus pandemic continues.

    With the continued idling of airport gateways, the industry has been hit particularly severely, with operators making tough decisions on opening hours that usually run 24/7/365.

    Shilla Duty-Free will shutter its store on the popular Jeju Island on weekends and holidays for the month, while Shinsegae Duty-Free closed yet its fifth outlet out of 19 stores at Incheon International Airport. Shinsegae has also agreed with the airport to stop midnight sales at the remaining stores in operation.

    Lotte Duty-Free and Shilla have also reduced hours at their Incheon Terminal 2 stores, closing at 9.30 pm. Shilla is also expected to shutter its Yongsan downtown store in Seoul.

  • Nervous Chinese consumers hesitating to return to retailers

    Nervous Chinese consumers hesitating to return to retailers

    Mainland Chinese retailers are discovering that a return to normal business after the coronavirus will take longer than expected.

    Shopping malls and high-street shops have begun to reopen across the country as the worst of the pandemic which paralyzed the nation in February appeared to be over.

    According to figures from China’s Ministry of Commerce, about four in five restaurants and cafes and 90 percent of commercial facilities have now reopened.

    But retailers are reporting footfall is well down on pre-coronavirus levels. One worker at a Walmart store in Shanghai told a reporter that customer numbers were running at about half the usual level. “Sales are not growing at all.”

    Data from the China Chain Store & Franchise Association shows that more than half of companies operating shopping malls expect a decline in sales of between 30 percent and 70 percent during the first quarter of this year. None expect growth.

    Fast-food operator Yum! China had earlier reported in a shareholder update that customer numbers were down by about 20 percent late last month, but it expected turnover to steadily recover. Store closures peaked in mid-February when about 35 percent of the company’s network of KFC, Pizza Hut and Little Sheep chains were closed, the balance offering delivery only. Almost all stores are now trading again.

    But the problem for retailers – ranging from food to fashion – is that consumers remain nervous about the potential to contract the virus and are continuing to practice social distancing. This has led to many who may have routinely dined out after work, eating at home instead.

    Other consumers are practicing frugality due to lost earnings or concerns about their ongoing job security, while many Mainland Chinese consumers are shopping online.

    While shops in major cities have been given the official green light to resume trading, many luxury stores remain closed.

    Electrical goods retailer Suning says some of its stores are experiencing only about half the pre-coronavirus footfall.

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  • Digital Payments in China Surge

    Digital Payments in China Surge

    China’s digital payment market grew to $8.4 trillion in the last quarter of 2019 and there are signs of still robust momentum in the months following the outbreak.

    By transaction volumes, Alipay retained the top rank with 55.1 percent followed by Tencent’s two platforms – WeChatPay and QQ Wallet – at 38.9 percent, according to a report (Mandarin only) by independent research firm iResearch.

    The remaining 6 percent where split between 1qianbao (1.4%), JD Pay (0.9%), UMPay (0.6%), 99bill (0.6%), Yeepay (0.5%), China UMS (0.3%), Sunin Pay (0.2%) and others (1.5%).

    59.8 trillion yuan ($8.4 trillion) in total digital payment representing a year-on-year increase of 13.4%

    Even in the midst of an ongoing coronavirus outbreak, the Chinese digital payment market signaled strength, the report underlined.

    Beijing-based grocery startup Meicai attracted 800,000 new users in one week on an online platform that connects farmers with consumers and restaurants. Between March 18 and 22, Alipay registered average daily purchase of nearly 1.1 million cups of milk tea via branding programs.

  • Indonesian retail bussineses starts shutting down as coronavirus crisis gets worse

    Indonesian retail bussineses starts shutting down as coronavirus crisis gets worse

    The Indonesian retail sector has begun to shut down in the wake of the coronavirus crisis, with shopping centers and retail chains voluntarily closing the doors to non-essential categories.

    More than 30 shopping malls have been shut down in the country despite no order from authorities. Lippo Malls Indonesia Retail Trust (LMIRT) has temporarily closed 11 out of 23 shopping malls in the Greater Jakarta region, Bandung and Bali.

    According to LMIRT, the company will close its malls until April 9 and waive rent for all affected tenants. Essential services including supermarkets and pharmacies remain open during the shutdown.

    Other shopping malls across Jakarta closed include Senayan City, Plaza Indonesia, Aeon Malls, Mall of Indonesia and Lotte Shopping Avenue.

    Meanwhile, McDonald’s Indonesia will cease dine-in services across the country for two weeks starting from April 1. The company said on its social media channels that it still offers to take away, drive-through and home delivery services.

    As Indonesian retail continues to wind down, many local restaurants have also closed their doors but continue to operate through third-party apps like Gojek and Grab.

    Japanese fashion brand Uniqlo is among the latest retailers to temporarily close their stores in Indonesia.

    As of today, Indonesia has confirmed 1414 positive cases of Covid-19 including 122 deaths and 75 recovered.

  • Metro Retail Stores show strong profit growth

    Metro Retail Stores show strong profit growth

    Metro Retail Stores Group in the Philippines has reported a 21.5-per-cent growth in income to US$20.80 million (Php1.06 billion) last year.

    The growth was driven mainly by an 11.3-per-cent increase in sales to $722.31 million (Php36.8 billion) with operating expenses rising by a lesser rate of 9.3 per cent.

    Additional insurance recoveries relating to a serious fire the previous year saw non-core income increase by $4.29 million (Php218.7 million), offset by the net impact of the new PFRS 16 accounting standard of $7.13 million (Php363.7 million).

    Metro Retail Stores’ operating income, as well as net income, would have increased by 13.7 percent and 18.0 percent respectively excluding the impact of PFRS16.

    The firm says that increasing its store network to serve emerging cities and municipalities in Visayas, Central Luzon and the Bicol region was vital to the home-grown retailer’s strong performance.

    In 2018, the company recorded a 1.2-per-cent drop in net income due to the closure of a hypermarket and the temporary suspension of a supermarket following a fire, along with other factors.

    Metro Retail Stores Group is owned by the Gaisano family based in Mandaue City, Cebu. It has 53 department stores and hypermarkets in the Visayas Region.

    The company’s supermarkets, hypermarkets and pharmacies are all continuing to trade to provide much-needed basic goods and services as the Philippines struggles with the Covid-19 outbreak.

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  • JD Super boosts tea sales through live streaming

    JD Super boosts tea sales through live streaming

    Chinese online supermarket JD Super has used live streaming to achieve a 100-per-cent increase in tea sales.

    During a recent tea festival, the JD subsidiary invited social influencers and experts to participate in live streams to promote a deeper understanding of Chinese tea among enthusiasts. More than 200 live broadcasts were hosted by intangible cultural heritage tea authorities and tea experts from major brands.

    One popular video stream attracted nearly 70,000 viewers, generating sales of RMB300,000 (US$42,300).

    “JD Super has strict standards for selecting tea and provides tea brands with support in big data, traffic and operations,” said the firm. “These act as the guarantor for Chinese consumers to access high-quality tea products on JD.com.”

    The firm’s logistics arm JD Express has also developed a rapid supply chain solution for spring tea, including tea collection, packaging and delivery to tea gardens.

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  • South Korean retail sales surge as people stay home

    South Korean retail sales surge as people stay home

    South Korean retail sales surged 9.1 percent in February, despite the advent of the coronavirus pandemic.

    The year-on-year increase reflected consumers buying more daily necessities online as the virus spread. And, with people largely staying home, substantially less was spent eating out, so consumers were buying more food to prepare or eat at home.

    According to data compiled by the Ministry of Trade, Industry and Energy, South Korean retail sales rose from US$7.92 billion in February last year to $8.68 billion last month.

    Online sales soared by 34.3 percent, the strongest increase since data was first collected in 2016. By comparison, for the whole of last year, online sales rose by 14.2 percent.

    Food sales almost doubled, driving overall growth, while sales of household products were up by 44.5 percent.

    Convenience-store turnover rose by 7.8 percent, however, overall sales across offline stores fell 7.5 percent year on year, with department stores hardest hit, down by 21.4 percent.

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