Retail News CRM

Tag: under

  • Gold Rush Down Under: Massive Queues at Sydney Bullion Stores Amid Investment Frenzy

    Gold Rush Down Under: Massive Queues at Sydney Bullion Stores Amid Investment Frenzy

    In the face of global uncertainty, Australians in Sydney have been flocking to buy gold, a traditionally regarded safe-haven investment. Long queues have formed outside gold bullion stores as people patiently wait their turn to secure this precious metal.

    Gold Buying Rituals Amidst Challenges

    For Prakas, a Nepali Australian, purchasing gold during Diwali, an annual Hindu festival, is a treasured tradition. Yet, this year, this ritual proved to be a daunting task due to the thousands of Australians lining up for gold in Sydney. On October 18, Prakas drove to Sydney’s central business district, only to find approximately 400 people in line at the ABC Bullion store on Martin Place. Disheartened, he returned home. He later attempted to order online, but the expedited process still led him to a two-hour waiting line for online pre-purchasers.

    Gold Demand Skyrockets

    The demand for gold, a traditional hedge in uncertain times and a non-yielding asset, has soared by over 51% this year. This surge is attributed to ongoing geopolitical and trade tensions, as well as anticipated U.S. interest rate cuts. The ABC Bullion store on Martin Place recently experienced an influx of customers, with retirees and families jostling around the entrance in hopes of making a purchase, their presence persisting throughout the day. Jordan Eliseo, the store’s general manager, reported approximately 1,000 customers visiting daily for over a month, with thousands more opting for online purchases. Buyers from across the city arrive as early as 9 a.m. to secure their spots in line, while others wait for hours to make their purchases. To accommodate the rush, Eliseo extended trading hours and added five new staff members in the last two weeks.

    The Gold Market’s Potential Risks

    Despite the current gold-rush frenzy, market experts warn of potential risks in the gold market. Chief economist at a financial services firm, Shane Oliver, expressed concerns that the lengthy queues could be a red flag indicating a speculative market prone to correction. His warning seemed prophetic when, on October 22, gold prices plummeted 6.8% to $4,082.35 per ounce, marking the steepest single-day drop in 12 years. Although the price slightly rebounded later that week, it still ended lower, disrupting a record nine-week rally. Ray Attrill, head of FX strategy at National Australia Bank, noted that the steep fall mirrors a familiar pattern, hinting that a dash for profit was inevitable.

    Questions & Answers

    What is the current trend in the gold market in Sydney?
    A significant surge in gold buying has been observed in Sydney, partly due to its traditional status as a safe-haven asset during times of global uncertainty.

    What challenges are buyers facing in securing gold?
    Buyers are enduring long queues at gold bullion stores and even online pre-purchasers are facing waiting times. The high demand has resulted in extended trading hours and increased staffing at stores.

    What are the potential risks in the current gold market?
    Experts caution that the current trend could indicate a speculative market potentially at risk of a correction. The sharp fall in gold prices on October 22 supports this cautionary stance.

  • Audi Slashes Prices Across Range In India Following Gst 2.0 Implementation

    Audi Slashes Prices Across Range In India Following Gst 2.0 Implementation

    In response to the newly implemented Goods and Services Tax (GST) 2.0 regime, Audi India has released an updated price listing for its various models. The reductions, varying from Rs 2.6 lakh to a substantial Rs 7.8 lakh depending on the model, intend to make Audi’s luxury cars and SUVs more affordable. As a result, they hope to stimulate customer demand just in time for the upcoming holiday season. For the precise cost of their chosen model, customers are encouraged to visit their local Audi dealership or the official website.

    Audi Q3, Q5, and Q7: More Affordable Than Ever

    There have been notable price drops across the Audi range. The Audi Q3, originally on the market at a starting price of Rs 46,14,000 (ex-showroom), now has a new starting price of Rs 4,307,000 (ex-showroom). The Audi Q5 has also seen a significant decrease in price, with a reduction of up to Rs 4.55 lakh. This adjustment lowers the starting price to Rs 63.75 lakh (ex-showroom), a significant discount from the previous Rs 68.30 lakh (ex-showroom).

    Even Audi’s Q7 model has become more affordable, thanks to the new pricing. The earlier price tag of Rs 92.29 lakh (ex-showroom) is now reduced to a more wallet-friendly Rs 86.14 lakh (ex-showroom). Furthermore, the Audi Q8, the brand’s flagship SUV, has also been reduced by up to Rs 7.83 lakh. This cuts the previous price from Rs 1,17,49,000 (ex-showroom) to its current starting price of Rs 1,09,66,000 (ex-showroom).

    Discounts for Audi A4 and A6 Models

    The price changes also affect the Audi A4 and A6 models. These popular vehicles have received price reductions of up to Rs 2.64 lakh and Rs 3.64 lakh, respectively. The adjusted starting price for the Audi A4 is now at Rs 46,25,000, while the A6 starts from Rs 63.74 lakh (ex-showroom).

    Questions & Answers

    What are the new starting prices for the Audi Q3 and Q5?
    The Audi Q3 now has a starting price of Rs 4,307,000 (ex-showroom), while the Audi Q5 starts at Rs 63.75 lakh (ex-showroom).

    How much has the price been reduced for the Audi A4 and A6?
    The Audi A4 and A6 have seen price reductions of up to Rs 2.64 lakh and Rs 3.64 lakh respectively.

    What impact is the GST 2.0 regime expected to have on Audi sales?
    With price reductions across Audi’s range of models, the company anticipates these changes will drive customer demand, particularly ahead of the festive season.

  • Giordano Sees Sales Surge Amid Economic Uncertainty: E-commerce Success And ‘beyond Boundaries’ Strategy Key

    Giordano Sees Sales Surge Amid Economic Uncertainty: E-commerce Success And ‘beyond Boundaries’ Strategy Key

    Hong Kong’s prominent fashion retailer, Giordano, recently announced an increase in their sales for the first half of the fiscal year. This significant improvement in sales is mainly attributed to a substantial surge in the company’s e-commerce operations.

    Positive Revenue Growth Amid Economic Uncertainty

    Giordano’s revenue for the first half of the fiscal year experienced an increase of 1.6 per cent, amounting to HK$1.934 billion (US$248 million). The management team highlighted this growth as a significant accomplishment in the midst of a fluctuating political and economic environment.

    The primary contributor to this growth was the company’s online business, which saw a remarkable increase of 26.1 per cent. This surge was credited to ongoing digital transformation efforts and customer-centric strategies.

    Geographical Revenue Analysis

    In the realm of geographical revenue, Mainland China saw a 13 per cent increase, with a nearly 18 per cent rise in the second quarter and an 8 per cent surge in the first quarter. Same-store sales remained steady in Q2, which was a positive shift from the 3.6 per cent decline in Q1.

    Revenue in Hong Kong and Macau reversed from a 6.5 per cent drop in Q1 to a 2.2 per cent increase in Q2, outperforming the overall negative retail sales in Hong Kong’s clothing sector.

    Sales in the Gulf Cooperation Council similarly experienced a 1.9 per cent growth during the half. However, Southeast Asia and Australia witnessed an 8 per cent decrease, mainly due to the poor performance in the Indonesian market.

    The company’s gross margin dropped by 3.3 percentage points to 55.6 per cent, which was primarily due to a larger volume of online sales and wholesale, inventory clearance efforts, and increased merchandise costs. The attributable net profit remained fairly consistent, with a minor increase of 0.8 per cent to HK$121 million.

    The ‘Beyond Boundaries’ Strategy

    CEO Colin Currie shed light on the company’s ‘Beyond Boundaries’ five-year strategy, which was initiated a year ago. He said that through this strategy, they were able to successfully execute a series of ‘Quick Win’ initiatives to establish a robust foundation for 2025 and beyond.

    The central focus of the ‘Beyond Boundaries’ strategy for 2025 is to strengthen the ‘Digital-First’ approach, simplify the brand portfolio, and make significant strides in Greater China.

    Currie stated that while the company is pleased with the positive results, they are continually reviewing and adjusting areas that need improvement, particularly in safeguarding their gross margin. To support better performance, they are actively improving their processes and enhancing sourcing efficiency.

    Last year, Giordano reported a 1.2 per cent revenue increase.

    Questions & Answers

    What led to the increase in Giordano’s sales for the first half of the fiscal year?
    The increase in sales was primarily driven by a significant boost in the company’s e-commerce operations.

    How did Giordano’s geographical revenue perform during this period?
    Mainland China experienced a 13 per cent revenue increase, while Hong Kong and Macau saw a 2.2 per cent rise. However, Southeast Asia and Australia faced an 8 per cent decrease in revenue.

    What is Giordano’s ‘Beyond Boundaries’ strategy?
    The ‘Beyond Boundaries’ strategy is a five-year plan aimed at strengthening the ‘Digital-First’ approach, simplifying the brand portfolio, and making significant strides in Greater China.

  • Homeplus Announces Closure Of 15 Outlets Amid Growing Financial Crisis And Rehabilitation Efforts

    Homeplus Announces Closure Of 15 Outlets Amid Growing Financial Crisis And Rehabilitation Efforts

    Homeplus Co, a discount store chain experiencing financial troubles, disclosed on Wednesday its plans to shut down 15 outlets due to increasing operational challenges in the business environment.

    Undergoing a court-led rehabilitation process since March this year, Homeplus has been grappling with its dipping financial health. The company’s corporate bonds value was adjusted from A3 to A3- by two local credit rating agencies, given its unsatisfactory financial state. The organization is expected to present its rehabilitation strategy to the Seoul Bankruptcy Court by the 10th of September.

    Samil PricewaterhouseCoopers, the court-assigned accounting firm, suggested conducting a merger and acquisition (M&A) auction before the court endorses the plan, as the liquidation value of Homeplus surpasses its ongoing concern value. The court has given its consent to this recommendation.

    In recent times, the company has witnessed a slump in sales due to plummeting consumer confidence, decreased transactions with suppliers and the latter’s insistence for upfront payments, thereby instigating a prospective liquidity crisis.

    Joh Joo-yun, the co-CEO, expressed his concerns in a message to the employees stating that if this situation prolongs, the company’s revival through an M&A prior to the court’s approval of the rehabilitation plan might be jeopardized.

    Joh further emphasized that the company has resorted to emergency management actions to avert the crisis. He highlighted that the issue transcends beyond a mere management problem to one that impacts the broader economy and the job security of 22,000 workers employed with Homeplus and its subcontractors.

    Joh, along with Kim Kwang-il, the vice-chairman of MBK Partners, are the two court-appointed managers. MBK Partners took over a 100 percent stake in Homeplus from the British retailer Tesco Plc in 2015, amounting to 7.2 trillion won (US$5.2 billion).

    As of Wednesday, Homeplus operates 125 outlets.

    Questions & Answers

    What is the financial state of Homeplus Co?
    The discount store chain is currently under a court-led rehabilitation program due to its poor financial health.

    What was the recommendation of Samil PricewaterhouseCoopers regarding the company’s current situation?
    The court-appointed accounting firm suggested a merger and acquisition auction before the court approves the rehabilitation plan, as the company’s liquidation value is higher than its going concern value.

    What is the impact of Homeplus’ financial troubles on its employees?
    The co-CEO, Joh Joo-yun, expressed concerns that the ongoing situation could affect the broader economy and the job security of 22,000 workers at Homeplus and its subcontractors.

  • Luxury Brand Loro Piana Under Judicial Administration Amidst Labour Exploitation Allegations

    Luxury Brand Loro Piana Under Judicial Administration Amidst Labour Exploitation Allegations

    Luxury fashion brand Loro Piana, a subsidiary of LVMH, has been placed under judicial administration for one year by a Milan court following allegations of labour exploitation within its Italian supply chain.

    Labour Exploitation Allegations

    The court ruled that Loro Piana had failed to properly supervise its subcontractors, leading to labour violations through indirect suppliers. This makes Loro Piana the fifth luxury label to face such allegations since last year, joining the ranks of Dior, Valentino, Armani, and Alviero Martini.

    Investigations conducted by Italy’s Carabinieri labour protection unit unveiled that one of the workshops had employed 10 Chinese workers, five of whom were undocumented. These workers were allegedly forced to work up to 90 hours per week and were paid only EUR4 per hour (US$4.6). They were also illegally housed at the site.

    These allegations surfaced when a worker reported being assaulted over unpaid wages, leading to the arrest of the workshop owner and the closure of the facility.

    Judicial Administration

    Although Loro Piana is not subject to a criminal investigation, the court has appointed an external administrator to oversee improvements to the brand’s supply chain oversight. If the company demonstrates substantial progress, the judicial administration could be lifted early, as has happened in similar cases involving Dior and Armani.

    Loro Piana has attributed these violations to unauthorised subcontracting. It was discovered that the company had outsourced work via two front companies to Chinese-owned workshops in Milan. These workshops lacked the necessary capacity for manufacturing.

    The company has since severed ties with the supplier and pledged to reinforce its control and audit activities as a means of ensuring compliance with its ethical and quality standards.

    Company Background

    Loro Piana, acclaimed worldwide for its luxury cashmere and wool products, was acquired by LVMH in 2013. The founding family still retains a 20% stake in the company. This past June, Frederic Arnault, son of LVMH’s chairman and CEO Bernard Arnault, was appointed as the company’s CEO.

    Questions & Answers

    What led to the legal action against Loro Piana?
    A worker reported being physically assaulted over unpaid wages, sparking an investigation that revealed labour violations within the company’s supply chain.

    What measures has the court imposed on Loro Piana?
    The court has appointed an external administrator to supervise reforms to the brand’s supply chain oversight. The company has also been placed under judicial administration for a year.

    What steps has Loro Piana taken since the allegations surfaced?
    Loro Piana has ended its relationship with the implicated supplier and committed to enhancing its control and audit activities to ensure compliance with its ethical and quality standards.