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Tag: Store

  • South Korean convenience stores in delivery-service battle

    South Korean convenience stores in delivery-service battle

    Competition among South Korean convenience stores over delivery services is heating up.

    One chain, GS25, recently launched delivery services from seven stores in Seoul in partnership with food-delivery service Coupang Eats operated by e-commerce giant Coupang.

    First of all, the South Korean convenience store company plans to implement delivery services through Coupang Eats at seven stores in Seoul before expanding the scope of the service to franchise stores nationwide.

    Through the service, customers can receive about 200 products at home, including prepared lunches, sandwiches and beverages that are being sold at convenience stores.

    Meanwhile, GS25 had already launched a delivery service for store products in cooperation with another delivery company, Yogiyo, in April of last year.

    It is running a pilot project at 10 direct management stores, and the service has been especially popular with workers during lunch and dinner time. In the nine months since the service was introduced, the monthly average number of orders reached 3000.

    Furthermore, CU, another convenience store chain, is also working with Yogiyo to provide delivery services at 3000 stores across the country.

    CU plans to increase the number of delivery service stores to 5000 within the first quarter and introduce around-the-clock delivery at some stores centered in the Gangnam area.

    Emart24, a convenience store chain run by large discount store chain E-Mart, on the other hand, has also joined the market by offering delivery services at 35 stores since earlier this year.

    South Korean convenience stores are scrambling to expand its delivery service area due to a growing number of customers accustomed to online orders and deliveries.

    The delivery service also serves as a growth engine in increasing sales at convenience stores. Additional sales are generated from deliveries, and the service is quite popular especially in rainy or cloudy weather.

    “We are planning to expand the number of stores that offer delivery services through various delivery platforms and partnerships to increase sales and secure customers,” a GS25 official said.

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  • Toranoana opens collaborative shop with Sanrio characters in Tokyo

    Toranoana opens collaborative shop with Sanrio characters in Tokyo

    Japanese manga-related retailer Toranoana has partnered with Sanrio to open a collaborative store selling Sanrio character merchandise, in Tokyo’s Akihabara district.

    A variety of Sanrio character merchandise, including the famous Hello Kitty, are displayed on the first floor of the store.

    Toranoana and Sanrio say they hope their partnership will strengthen their presence and help them continue to expand domestically and internationally.

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  • Kadokawa targets foreigners with EJ Anime store online

    Kadokawa targets foreigners with EJ Anime store online

    Kadokawa Corporation has launched an EJ Anime store online where people living overseas can purchase official merchandise for Japanese anime, comics, light novels, and games.

    The EJ Anime store stands on a burgeoning anime market in Japan that has continued to increase for nine years, reaching sales of ¥2,180 billion (US$20.07 million). The rapid increase in the overseas market is contributing to this major growth, with more than ¥1 trillion ($9.2 billion) in sales and accounting for 46.3 percent of the market.

    The Kadokawa EJ Anime store aimed at the Japanese domestic market has also seen an increase in overseas traffic (increasing roughly 170 percent over four years since 2016), demonstrating a high level of interest in Kadokawa products among people living overseas, mainly in North America and Asia.

    Opening an EJ Anime Store online allows people living overseas to buy official merchandise and premium products that are difficult to obtain overseas.

    When the site opens, target areas for sales will include 17 countries and regions, including the US, France, Spain, the UK, Taiwan, Hong Kong, and Australia – with plans to expand to 80 areas, including China.

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  • Starbucks China closes over 2000 stores due to Coronavirus virus

    Starbucks China closes over 2000 stores due to Coronavirus virus

    More than 2000 Starbucks China stores have been closed to protect staff and customers from the coronavirus outbreak, including its giant Shanghai Roastery.

    “We currently have over half our stores closed in the market,” said Starbucks Inc group president, international, channel development and global coffee & tea, during an earnings call on Tuesday.

    “We are assessing this each and every day. We do have delivery available to customers from stores that are remaining open. But again, this is something that we continue to assess every day… This is a very complex situation.”

    The unprecedented network closure comes as the deadly coronavirus spreads beyond its epicenter of Wuhan in the Hubei province across China. As at 9am ICT Thursday, there were 7892 confirmed cases of infection the vast majority in Mainland China. To date, there have been 170 deaths, all on the mainland.

    Starbucks China’s widespread store closures coincided with the release of the parent company’s first-quarter figures which showed 5-per-cent global same-store-sales growth, including 3-per-cent growth in China. The company has more than 4100 stores on the mainland and 31,795 globally, adding a net 539 during the quarter to December 29, 167 of those in China. Consolidated net revenues of US$7.1 billion grew 7 percent year on year.

    During the earnings call, Culver said the closures were ordered because the company was making sure it was taking care of its partners, their health and well being, as well as the customers.

    “As the situation has accelerated, we’ve taken action to close stores, both working with the local government in the direction that they’ve given us, but then also proactively closing stores in the country.”

    The stores will reopen when it is considered safe, but Culver indicated Starbucks was not yet sure about the potential impact of the closures on its second-quarter performance.

    “It really is difficult to say at this juncture, what the impact to our business will be and how it will show up in our financials. Given the fluidity of the situation, the business impact is largely a function of two things – the number of stores closed and the duration of closure – and with respect to the duration, it’s not entirely in our control. We will need to move beyond the extended Chinese New Year holiday season to assess how the situation may be stabilizing, and what the implications are. We’re probably looking at early March at the earliest to reasonably assess the implications for revenue operating income and EPS for our second quarter and for the full year at the very latest will provide an update in conjunction with our Q2 earnings release on April 28.

    “As a company, we’ve navigated complex situations before and in China, we feel there’s no other company that’s better positioned to navigate this given our relationship that we’ve been able to build with our partners and the relationship and trust that they’ve been able to build with their customers.

    “We will remain transparent as the events continue to unfold. But we do have complete confidence in the decisions that we’re making. We’ve been in the market for 20 years and we have built an admired and trusted brand. And we will continue to play the long game in China, as we navigate in the coming weeks and months.”

    Meanwhile, Starbucks executives say they are focusing on lower-tier cities to maintain its Chinese market growth. Of the 167 stores opened in the December quarter, 46 percent were in tier 1 and 2 cities, the balance in tier 3, 4 and 5 cities.

    “We continue to make investments in those cities, playing the long game, clearly when we opened our first few stores, there’s a lot of demand for Starbucks coming into those cities, as we continue to build out the footprint,” said Culver. “What we’ve seen historically, is that the total transactions obviously continue to grow and volumes show up as very similar to some of our outer tier-one cities.”

    Delivery services – available in 3500 stores, or about 80 percent of its network there, we’re also paying dividends.

    “We see it as an incremental for these existing customers as well as attracting new customers in total dollar profits, continue to increase because of it, and slightly margin diluted, but it does provide a higher ticket, as well as a higher food attach,” said Culver.

    “And we also see stronger demand in the morning, and during the lunch period.”

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  • Ikea eco-store under construction in Vienna

    Ikea eco-store under construction in Vienna

    A seven-level Ikea eco-store is being built in Vienna – with no car parks, targeting pedestrians, cyclists and public transport users.

    The new venue features a bookcase-style design with green facades and a green roof terrace with plenty of strolling space. The store, designed by Querkraft Architekten, is thought to appeal to the many families in the region living without cars.

    “The concept focuses on the current megatrends and takes into account the dramatically changed shopping behavior as well as a new form of mobility without a car,” read a statement from the firm.

    “Customers have little time and appreciate convenience and comfort. This is clearly noticeable in the furnishing area: more and more customers no longer even think about carrying their purchases home themselves. You can have them delivered.”

    The Ikea eco-store is scheduled for completion next year.

  • Hyundai Department Store aims to eliminate paper receipts

    Hyundai Department Store aims to eliminate paper receipts

    Hyundai Department Store says it will launch an electronic receipt issuance service with the aim of “zero” paper receipts within three years.

    Electronic receipts will be issued in the form of the automatic issuance of receipts through mobile applications instead of paper receipts when purchasing goods.

    Last year, about 160 million paper receipts were issued by Hyundai Department Store and Hyundai outlets.

    If an average length of paper receipt is 25cm, the total length of issued paper receipt would be able to circle the earth once – about 40,000km.

    Even if one is not a member of the department store’s loyalty program, the company will introduce a “mobile receipt” service that sends receipts by text message if a mobile phone number is entered in the process of product payment, which will also eliminate paper receipts.

    The issuance of electronic receipts is a measure under the “paper receipt elimination” agreement signed with the Ministry of Environment and other government ministries last August.

    The department store expects that the issuance of electronic receipts will have the effect of eliminating paper waste and waste disposal issues as well as minimizing concerns over personal information leaks.

  • GS25 opens futuristic c-store concept

    GS25 opens futuristic c-store concept

    South Korean convenience-store chain GS25, owned by GS Retail, has opened a futuristic convenience store without a checkout counter in Jung District, Seoul this week.

    The store, which is located in the headquarters building of a local credit card company BC Card, is similar to Amazon Go, checkout-free offline malls in the US.

    One can enter the convenience store by scanning a BC Paybook QR code from BC Card’s mobile payment app at the speed gate.

    When customers enter the store, 34 ‘deep-learning cameras’ will recognise their behaviour. In addition, some 300 weight sensors installed throughout the store detects the number of items that customers choose.

    When a customer chooses their purchases and exit the speed gate, all the items will be automatically paid for through a payment system using artificial intelligence (AI) technology, and a mobile receipt will be issued.

    A video-recognition speaker is also installed, where a pre-set voice will guide the customers through speakers. If customers are standing at some point or do a particular action, the speaker will provide assistance.

    In the future, the company will gradually introduce technologies that guide customers to promotions when they approach a presentation product stand.

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  • Liverpool FC pop-up store opens in Vietnam

    Liverpool FC pop-up store opens in Vietnam

    Liverpool FC has partnered with CRC Sports to launch a merchandise pop-up store in Vietnam.

    Located at Estella Place shopping mall in District 2, the pop up offers fans a full range of New Balance replica kit as well as authentic Liverpool FC merchandise, apparel and fashion accessories.

    “Our new store in Vietnam will enable us to continue to expand our retail operations, so all our fans can enjoy authentic LFC experiences and purchase our whole range of official merchandise,” said Mike Cox, senior VP, merchandising at Liverpool FC.

    During the Liverpool FC store’s launch event, fans were given the opportunity to meet and take photos with former Liverpool forward Luis Garcia.

  • South Korean convenience stores wind back 24-hour service

    South Korean convenience stores wind back 24-hour service

    South Korean convenience-store owners are canceling 24-service as minimum wage rise has eroded profits.

    Last year, president Moon Jae-in launched a campaign to raise the hourly minimum wage by 29 percent over two years. With night-shift employees earning time-and-a-half pay, franchisees have been struggling to pay part-time staff during the small hours.

    Not all stores traded around the clock when Shinsegae group launched the Emart convenience-store chan in 2014. Three Korean c-store giants, GS Retail, BGF Retail and Lotte Group, now allow its franchisees to close stores at night if the outlets lose money overnight for three months.

    In a market with the highest rate of c-stores per capita, South Korean convenience-store owners are shifting their focus to automated, unmanned stores. Emart is trialing a cashier-free store in Seoul with more than 30 cameras installed. Payments are made with credit card information stored in advance. Meanwhile, Lotte operates 17 unmanned outlets where products are scanned and identified by its shapes.

    Last year, many 7-Eleven and Familymart stores in Japan had to overturn its 24-hour operations as they were suffering from the labor shortage.

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  • Forever 21 online store relaunched

    Forever 21 online store relaunched

    Bankrupt US fast-fashion chain Forever 21 is relaunching its e-commerce site to target customers in Asia, Australia and the Americas.

    The troubled retailer has closed more than 100 stores – mostly outside its core US market – since it sought Chapter 11 protection in September. But in a sign it wants to continue to engage with customers in Asia, especially, Forever 21 online has partnered with Global-e to create a new site which will support nearly 100 currencies and more than 150 local and alternative payment methods, along with localized tax collection and duties calculations. The site will feature 21 languages.

    Forever 21 president Alex Ok said the company had noted ongoing demand from customers in markets it has plans to exit.

    “E-commerce forms a large chunk of the profitable core of our operations and as part of our new global strategy, Forever 21 will leverage Global-e’s technology to offer international customers an outstanding online experience,” he said in a statement.

    Matthew Merrilees, Global-e​ CEO for North America, says the global e-commerce market remains an opportunity for Forever 21 online.

    “More than 60 percent of Australian online shoppers and more than 80 percent of Canadian online shoppers are now purchasing from international retailers, and we’re also noticing a growing trend towards cross-border e-commerce from a variety of markets across the Asia-Pacific region,” he said.

    A commentator writing for Retail Dive said pressure on the fast-fashion sector due to growing awareness of sustainability and growth in resale and rental services could impact Forever 21’s recovery strategies.

    “At least in the US, that is driving a slowdown in overall apparel sales and throws Forever 21’s longer-term prospects into question. That may be one reason why, despite centering its post-bankruptcy operations on the US and Latin America, the fast-fashion retailer doesn’t want to completely let go of its potential abroad.”

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  • Miniso Philippines opens its 100th store

    Miniso Philippines opens its 100th store

    Miniso Philippines has opened a new store at Estancia Mall, marking its 100th store.

    To celebrate the launch, a Japanese Kagami Biraki ceremony was led by Miniso president Michael Hong.

    The Chinese discount merchandise chain’s new store features lifestyle products including electronics, health and beauty lines, fashion accessories, seasonal products, food and beverages. Miniso Philippines’ 100th store also offered gifts during the holiday season, including holiday mugs, pastel-coloured pouches, and tumblers.

    Miniso operates 4000 stores in more than 90 countries and regions including the US, Canada, Russia, Singapore, the UAE, Korea, Malaysia, Hong Kong, Vietnam and Macau.

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  • 759 Store parent boosts store count despite tough market

    759 Store parent boosts store count despite tough market

    Despite the torrid times facing Hong Kong retailers in the second half of last year, the 759 Store network achieved sales growth of 1.3 per cent to HK$853 million (US$109.5 million) in the six months to October 31.

    In a year that chairman Tang Fung Kwan described as “full of challenges” a one-off property valuation gain helped CEC increase its profit attributable to shareholders nearly fourfold in the October half. It rose from HK$1.431 million in the comparable six months to $5.07 million.

    Tang said changes happened “every single split second” during the period as the US-China trade war remained unpredictable and the local economy was affected by a series of “disturbances in society”.

    “In the period under review, the group held saving resources as its basic principle, adopting extremely prudent policies, taking restrictive cost control on the retail business and electronic component-manufacturing business, in order to … survive in the economic storm,” he said.

    The 759 Store network accounts for 96 per cent of the group’s revenue which on a consolidated basis was down by 1.1 per cent in the half year despite stronger retail sales.

    The consumer-goods retailer strengthened its portfolio of daily-living products during the half, including rice, noodles, food-grocery items and frozen food. That meant the share of snack foods and leisure foods in the portfolio decreased.

    To control costs, the group closed stores with relatively high rents but searched for potential sites that while in less prominent locations were available at reasonable rents. There was a net gain of three stores between April 30 and October 31 as six closed and nine opened.

    Tang said the company remained cautious of “the influences of uncertainties that come both internally and externally” in the year ahead.

    “The group will review the cost structure of current retail-store network, considering not to renew the tenancy agreements of some stores whose rents were too high, in the meantime searching for potential shop sites of suitable locations and relatively reasonable rents for replacement.

    “For the products, 759 Store will further strengthen its portfolio of food-grocery items, introducing many more items for rice, noodles, spaghettis, canned food, etc.”

    He said the company’s procurement team is approaching meat suppliers in Europe and North America with plans to boost its range of frozen meat. About four in five stores currently have freezer cabinets.

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  • Razer opens its first London flagship store

    Razer opens its first London flagship store

    Singapore and Hong Kong-backed gaming company Razer has opened a flagship store in London’s West End as it tries to boost its global reputation.

    Backed by Singapore fund Temasek with Hong Kong tycoon Li Ka-shing and founded by Singaporean entrepreneur Min-Liang Tan, Razer has expanded from its gaming-hardware roots into software and financial services.

    The new RazerStore in London is the first in Europe and the brand’s largest yet with a 3700sqft footprint. It follows stores in Las Vegas, and San Francisco in California, Causeway Bay and Tsim Sha Tsui in Hong Kong and another in Taipei. RazerStore London opened to long queues.

    Like Razer’s other stores, the British venue is almost all black with contrasting bright green throughout.

    “All in all, it’s a decent retail experience, quite dissimilar to the Apple retail stores, but in a familiar kind of way,” observed Adrian Ip of WCCF Tech in a commentary posted online.

    “Where Apple is all light colors and airy atmospheres, Razer knows its audience and is primarily targeting it at hardcore gamers so thumping music, black paint, and RGB everywhere is the order of the day.”

    Visitors can try out all the Razer goods including mice and keyboards designed for gamers, headsets and the brand’s Blade-series laptops. Accessories and a small range of apparel complement the offer.

    In the downstairs area of the store, guests can play the game Fortnite, using Razer equipment, and there is a streaming booth.

    Ip said he was told by staff that RazerStores offer the brand a physical presence in major cities to market their goods as well as get more people hands-on with their gaming equipment.

    “This makes them less reliant on reviewers, but these are no glory loss-leaders: the stores have quickly reached profitability after launch”.

    “Given London’s location as a major global city with a large and wealthy population, it seems likely that this shop should reach profitability relatively quickly too.”

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  • Shops without stock draw crowds in South Korea

    Shops without stock draw crowds in South Korea

    There’s a new trend capturing South Korean consumers’ attention: shops without stock, focusing on experience rather than instant retail sales.

    With a growing number of consumers choosing and purchasing products online or on mobile devices, hands-on stores that target such customers are becoming a new marketing trend.

    Amore Seongsu, which opened in early October as a customer experience-oriented store of AmorePacific, a South Korean cosmetics giant, had surpassed 24,000 cumulative visitors as of December 5, about two months after its opening.

    At Amore Seongsu, customers can test and experience the brand’s cosmetics – but nothing is for sale in this shop without stock.

    Visitors can apply and spray products tailored to them from the beauty library, which features more than 30 brands and 2300 products from AmorePacific.

    Furthermore, Amore Seongsu offers various other services, including makeup classes, flower box- and perfume-making classes every month to encourage customers to participate.

    “We only offer customers the opportunity to check out products suitable for them at our stores, and customers purchase the products online afterward,” said an official from AmorePacific.

    Online shopping transactions of cosmetics reached 1.15 trillion won (US$966 million) as of October, up 28 percent year on year. Meanwhile, sales via mobile devices rose 32 percent to 648.8 billion won, according to Statistics Korea.

    In fact, data shows that 20 percent of customers who visit Amore Seongsu purchase products from the brand online within a week of their visit.

    In addition, AHC, a cosmetics brand operating under Carver Korea, opened its flagship store “Future Salon” in Myeong-dong, Seoul, in late October.

    American mattress maker Simmons opened a cultural complex, Simmons Terrace in Icheon, Gyeonggi Province, last year.

    Moreover, Aekyung Industrial Co, a South Korean household-goods and cosmetics maker, also launched Luna Signature, a hands-on cosmetics store near Hongdae in Seoul, in June. The two stores also place more weight on experience rather than sales.

    “We don’t put much importance on sales performance at experience stores,” a source from Aekyung said. “If we increase brand awareness by communicating with more consumers, it will lead to an increase in sales online.”

    The furniture industry, which already operated showrooms and flagship stores, has also recently attracted visitors by decorating exhibition and sales halls as cultural spaces.

    American mattress maker Simmons opened a cultural complex, Simmons Terrace in Icheon, Gyeonggi Province, last year. It has welcomed more than 100,000 visitors in just one year since its opening.

    In addition to the showroom-like shops, museums and exhibitions featuring gardens, lounges and brand stories have been set up at Simmons Terrace.

    “Customers do not purchase products immediately on site, but visitors become strong potential customers,” a furniture industry source said.

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  • Stores close, jobs shed as Hong Kong retailers survive downturn

    Stores close, jobs shed as Hong Kong retailers survive downturn

    Thousands of stores will close and 5600 jobs will be lost as Hong Kong retailers try to recover from a “severe” sales decline brought on by social unrest and declining mainland visitor numbers, according to a survey by the Hong Kong Retail Management Association.

    Conducted between October 29 and November 22, the survey revealed that 97 per cent of retailers polled have recorded losses since the protest activities began in June with the vast majority of those describing their losses as “heavy” or above moderate.

    The HKRMA said retailers planned to lay off staff if trading conditions did not improve. Based on survey responses, the association calculated that with some 270,000 people working for Hong Kong retailers currently, cuts “may exceed 5600 in the next six months”. And with 64,000 retail outlets currently operating in Hong Kong, as many as 7000 retail stores may close.

    Some companies have stated that even if they have not reached a severe level of trade decline, they anticipate closing stores within the next six months.

    The HKRMA urged shop owners to offer different rents to their retail tenants according to the degree of loss of the shop. Rent and staff costs are the biggest expenses retailers face in doing business and would naturally be the first to need adjusting to maintain commercial viability.

    Chairman Xie Qiu Anyi said rent reductions of 30 per cent were required to provide a lifeline to retailers.

    “All stakeholders need to support the retail industry in the future,” she said in a statement translated from Chinese. Currently, 80 per cent of survey respondents reported inadequate rent relief from landlords.

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