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Tag: uniqlo

  • SM Prime Holdings opens 60th mall

    SM Prime Holdings opens 60th mall

    An 80,000 sqm mall has been opened in eastern Metro Manila by Southeast Asian integrated property company SM Prime Holdings.

    As its 60th mall in the Philippines, SM City East Ortigas reinforces its commitment to continue expanding there given the economy’s strong performance, says SM Prime president Jeffrey C Lim.

    SM Prime’s malls in eastern Metro Manila include SM Megamall in Mandaluyong, SM Marikina and SM Center Pasig. It also has SM Angono, SM Masinag, SM San Mateo and SM Taytay in Rizal Province.

    sm-store

    SM City East Ortigas has opened with almost 80 per cent of its space leased out. The two-level mall houses SM’s flagship retail brands The SM Store and SM Supermarket, plus its specialty stores such as Ace Hardware, SM Appliance Center, Uniqlo and Watsons. It will also have a Cyberzone, wellness tenants, four digital cinemas and four Director’s Club cinemas, as well as dining destinations. There are 650 parking slots.

    SM Prime opened SM Cherry Congressional a year ago in Quezon City, as well as SM City San Jose Del Monte in Bulacan in April and SM City Trece Martires in Cavite in May.

    Of its 60 malls in the Philippines, 22 are in Metro Manila, 29 in Luzon, five in the Visayas and four in Mindanao. SM Prime also has six malls in China. SM Prime is also involved in residential development, leisure properties and hotels.

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  • Marks & Spencer plans to close all stores in Chinese mainland after profits plunged

    Marks & Spencer plans to close all stores in Chinese mainland after profits plunged

    UK retailer Marks & Spencer announced on Wednesday that it will pull out of the Chinese mainland market and close all the 10 stores amid shrinking profits, according to a statement the company sent to the Global Times on Wednesday.

    “Our review has shown that our stores in Chinese mainland continue to make losses and as result we can no longer trade with a store presence in the Chinese market,” Adam Colton, managing director of Greater China at Marks & Spencer, said in the statement.

    The company didn’t disclose sales revenues in the Chinese mainland market.

    An employee at an Marks & Spencer store in Beijing told the Global Times on Wednesday that he feels sorry about the closures because business in Beijing was quite good and there were a lot of loyal customers. He did not know when his last day of work would be. The 1,500-square Beijing flagship store at the Place shopping mall was opened in December 2015.

    Intensified competition and relatively high prices were the main reasons behind Marks & Spencer’s retreat from Chinese mainland, experts noted.

    “In Chinese mainland, the traditional UK brand did not have much appeal for Chinese consumers. For example, the prices in its food shops were a bit more expensive than even imported food stores,” Wang Xinmiao, a Beijing-based retail industry analyst, told the Global Times on Wednesday.

    In addition, the company did not have much time to cultivate brand awareness and a loyal customer base because the Chinese apparel market had already been saturated with “fast fashion” international brands, such as Zara, H&M, GAP, and Uniqlo, which marched into the Chinese mainland market much earlier than Marks & Spencer, Wang said.

    In contrast, the UK retailer has built a profitable wholly-owned business in Hong Kong in large part because it entered the market as early as 1988, the statement noted. Marks & Spencer is planning to expand its business in Hong Kong by opening more food stores in the near future.

    A customer said he came on purpose to the Beijing shop here after he has known the closure news. He has lived in UK for years and he trusts M&S, and he will shop in Hong Kong after the end of business here.

    The UK retailer has been losing ground in other international markets. In addition to its closures on the Chinese mainland, the company outlined plans to shutter 53 stores in 10 international markets, including seven in France, while pulling out of Belgium, Estonia, Hungary and Lithuania.

    In the first half of 2016, the company’s pre-tax profit plummeted 88 percent to 25.1 million pounds ($ 31.39million), down from 216 million pounds in the same period a year ago, as reported by BBC on Wednesday.

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  • Boom quarter for Alibaba Group

    Boom quarter for Alibaba Group

    While China’s economy goes through a sluggish patch, internet shopping mall giant Alibaba Group has announced a sparkling quarter in which profit beat expectations, its fledgling cloud computing business more than doubled sales, and its entertainment income quadrupled.

    “Our results reflect our increasing ability to monetise our 450 million mobile users through new and innovative social commerce experiences,” says CEO Daniel Zhang.

    “Beyond the strong performance of our core commerce business, we are pleased with the continued rapid growth of our cloud computing business. We also see huge potential in our newly integrated digital media and entertainment unit. By combining engaging online experiences with highly relevant content, we delivered impressive financial and operational results for the quarter. ”

    CFO Maggie Wu says the group had robust revenue growth of 55 per for the quarter ended September 30.

    “Our highly profitable and cashflow-generative core commerce business enables us to invest in our future growth areas of cloud computing, digital media, and entertainment and innovation initiatives. We expect each of these businesses to drive long-term value for both our customers and shareholders.”

    At RMB34.292 billion (US$5.142 billion), revenue increased 55 per cent year-over-year, the star sector being digital media and entertainment, which ballooned 302 per cent to RMB3.608 billion. There was also an impressive 130 per cent growth in revenue from cloud computing to RMB1.493 billion, while revenue from innovation and other sources grew 78 per cent to  RMB698 million, and revenue from core commerce rose 41 per cent to RMB28.493 billion.

    Up 23 million

    Mobile monthly active users (MAUs) on its China retail marketplaces reached 450 million in September, an increase of 23 million over June, while annual active buyers reached 439 million, an increase of 5 million from the 12-month period ended in June.

    Customers for its cloud computing business grew to 651,000 from 577,000 in the previous quarter. The operating loss from cloud computing was RMB398 million for the quarter, and adjusted EBITA loss narrowed from RMB158 million in the previous quarter to RMB57 million.

    Alibaba says its Taobao app continues to be the leading social-commerce platform, serving creative content, social-engagement opportunities and personalised shopping recommendations. Livestreamed demonstrations for fashion apparel, cosmetics, maternity/baby products, sports and activewear generated millions of daily views.

    The company says it also achieved high social engagement on the mobile Taobao platform, citing more than 6 million app users sharing their shopping experience with friends each day.

    “We continue to see strength in the consumer electronics category, with robust growth in smartphones and large appliances,” says Alibaba. “In September, Apple recognised our branding reach and distribution capability by appointing Tmall the third-party online platform for the simultaneous launch of the iPhone 7 with Apple in China.”

    In the large appliance category, Alibaba is continuing to work with Haier’s logistics subsidiary RRS, with orders from its marketplaces handled by RRS growing by more than 82 per cent for the quarter.

    Triple digits

    Alibaba has also continued to make strong progress in the FMCG category, with personal care, food, and mother and baby being among the top growth categories. Its Tmall Supermarket has seen its volumes grow by triple digits year-on-year.

    “Multinational FMCG brands are working with us as the partner of choice, not only to drive their transaction volume, but also in the areas of brand building, channel expansion and product launches to grow their presence in China.”

    During the year Alibaba launched innovations around livestreaming, AR and VR to drive consumer engagement. Examples include a livestreamed “See now, buy now” fashion show watched by 7 million viewers on Taobao, Tmall and the Tudou and Youku apps. Alibaba also integrated the omni-channel shopping experience at more than 60,000 offline storefronts, including Gap, Uniqlo and Intime department store.

    A pilot program has been introduced to help global merchants sell beyond China. Hong Kong and Taiwan are the first markets outside the mainland.

    Alibaba Cloud hosts and provides security products and services for more than 35 per cent of China’s websites, says the company.

  • CityOn.Zhengzhou to open fully leased

    CityOn.Zhengzhou to open fully leased

    Taubman Asia, a subsidiary of US shopping centre group Taubman Centers, and China’s Wangfujing Group, have announced the line-up of retailers for its CityOn.Zhengzhou mall in Henan province, set to open on March 16.

    When it opens, the centre will be 100 per cent leased and 90 per cent occupied with nearly 200 stores and restaurants. In the heart of Zhengdong New District, the six-level, 94,000 sqm shopping and dining destination will offer domestic, international and lifestyle brands from fast fashion to accessible luxury, anchored by a four-level Wangfujing department store.

    “We are thrilled to see our second China project coming to life in Zhengzhou,” says Taubman Asia president Rene Tremblay.

    Local, regional and international cuisine at all price points and in both seated restaurants and quick-serve formats will be a feature of the centre, which will also offer family-friendly experiential, educational and entertainment offerings.

    Many international brands will be making their central China debut at the centre, says Taubman Asia group VP Paul Wright.

    Outlets at the mall include…

    Fashion: Adidas, Ajidou, Basic House, Bershka, Charles & Keith, Columbia, Converse, Ecco, Five Plus, Forever 21, H&M, Innisfree, Jack & Jones, KIKC, Kipling, La Chapelle, Lee, Levi’s, Mango, Massimo Dutti, Miniso, Mishka, Mobi Garden, Nike, Pandora, Polo, Sand & Foam, Sephora, Skechers, Stradivarius, The North Face, Uniqlo, Vans, Vero Moda, Westlink and Zara.

    F&B/entertainment/kids/lifestyle/electronics: Acasia Food Village (featuring 14 food vendors), Benfu Sushi, Boat Noodle, Chatime, Chez Choux, Chicken Container, Coco, Dollar Shop, FrozenYo, GB Kids Station, Gong Cha, Grandma’s Kitchen, Guoguo Mutton Soup Restaurant, Guxiang No. 9 Catering, Hallmark Babies, Homao, Huawei, iSpace, La Chapelle Kids, Lenovo, MagicSalad, MM by Haircode, Mr Wish, NaughtyKids, New York Fries, Oscar CityOn Cinema, PapaBubble, Pizza Zone, Rbike, Siwuke Tea, Starbucks, Strawberry Forever, Subway, Teppanyaki Xiang, Toot Science, Udon & Tempura, Uncle, Wan Quan Bu Tong, Xiang Tian Xia Huo Guo, Xiao Liu Jia, Xiao Zhu Zhu Kao Rou, Xue Mi Da, Yang Xiang Dou Pi Shuan Niu Du, YuYuTo, ZBX Fresh Fish Hot Pot, Zheng Shi Yi and Zoo Steak.

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  • Jurong Point put on market with over S$2b price tag

    Jurong Point put on market with over S$2b price tag

    biggest suburban shopping centre, Jurong Point, has been put up for sale with a price tag exceeding S$2 billion.

    This works out to more than S$3,000 per square foot based on the commercial net lettable area of about 658,000 sq ft that is being offered for sale by an equal joint venture between Guthrie GTS and Lee Kim Tah Holdings, both of which have been delisted.

    At over S$2 billion, the price tag translates to a sub-4 per cent net yield, Michael Leong, director of sole marketing agent Array Realty said.

    Array in turn is working exclusively with JLL to conduct an expressions of interest exercise that will close on Nov 18.

    Guthrie and Lee Kim Tah are divesting a total net lettable area of 702,000 sq ft – including 44,000 sq ft of space under the government’s Community/Sports Facilities Scheme (CSFS) which is currently being used by occupiers such as NTUC First Campus Co-operative’s My First Skool and voluntary welfare organisations.

    There is a further space of about 59,000 sq ft under three strata retail units divested by Lee Kim Tah and Guthrie about two decades ago to Golden Village, NTUC FairPrice and POSB – taking the total net lettable area in Jurong Point to 761,000 sq ft.

    Guthrie and Lee Kim Tah are offering their 702,000 sq ft in the mall through the sale of shares in companies that own this space. “The two partners have owned the property for many years and want to look at pursuing new interests and opportunities,” said Mr Leong. Lee Kim Tah was delisted in early 2015 and Guthrie in November 2013.

    Most stockmarket analysts would think that a net yield of 3-plus per cent based on Guthrie and Lee Kim Tah’s asking price is too low to make for a yield-accretive acquisition by Singapore mall Reits (real estate investment trusts).

    However, JLL regional director of Singapore capital markets Anthony Barr expects Jurong Point to appeal to a broad range of other institutional investors including sovereign wealth funds, pension funds and insurance groups.

    “Rarely do stabilised assets of this scale become available. There have been no comparable sales of a suburban retail property of this size on the open market for more than a decade in Singapore’s tightly held retail sector; other large sales have been either related party transactions involving listed Reits or sales of partial interests.”

    A high-performing mall, Jurong Point is regarded as “fortress retail”, he added. “This, combined with the dynamic growth planned for the Jurong district, will ensure a broad range of interest at the indicated pricing.”

    Jurong Point is seamlessly linked to the Boon Lay MRT Station and Bus Interchange. It currently draws an average monthly visitorship of six million and has a catchment of 150,000 households within a five-km radius, with potential for growth as the new town planned in Tengah is progressively developed.

    Major tenants for the space at Jurong Point owned by Guthrie and Lee Kim Tah include FairPrice Xtra, Courts, Harvey Norman, Uniqlo and Kiddy Palace in addition to three foodcourts. Joining their ranks soon will be BHG, which will open a nearly 50,000 sq ft department store on three levels in December; part of this space was previously occupied by John Little.

    The mall is nearly fully let.

    Jurong Point stands on two sites; one has a balance lease term of about 76 years and the other, 89 years. Their combined land area is 557,288 sq ft.

    The original Jurong Point was completed in 1995 and spans four levels of retail space (Basement 1 to Level three). The CSFS space is on Levels 4, 5 and 6.

    The extension, which was completed in 2008, has three retail floors – Basement 1 and Levels 1 and 3.

    About 1,000 carpark lots in Jurong Point are available for use by shoppers.

    The mall’s total gross floor area (GFA) is 1.07 million sq ft; there is no unutilised GFA.

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  • This Retail Tycoon Wants to Open 500 Stores in China in Three Years

    This Retail Tycoon Wants to Open 500 Stores in China in Three Years

    As Europe’s fashion giants brace for what could be the toughest leg of their expansion in China, a South African retail tycoon has launched a bold assault on the world’s most populous nation.

    Christo Wiese is promising to open 500 of his New Look stores in just three years, catapulting the British brand into the same league in China as the world’s top fashion chains – Spain’s Inditex and Sweden’s H&M.

    His plan is to make most of the clothes in China to ensure they cater to local tastes and can get to stores quickly – a strategy similar to the one successfully pursued in Europe by Zara-owner Inditex.

    The arrival of New Look – and its local sourcing strategy – poses a new risk for the likes of H&M and Inditex, already suffering from slower growth in China, fierce competition for real estate and the cost of investing in ecommerce.

    H&M is opening more stores in China this year than anywhere else in the world and the country is already the second biggest market for Inditex outside Spain.

    China is a big draw for retailers who hope to tap the aspirations of a fast-growing middle class, with mid-range names benefiting as consumers trade down from luxury brands since Beijing’s clampdown on corruption and conspicuous spending.

    But recent history offers plenty of examples of failure. Western brands that have struggled in China include Gap Inc , Abercrombie & Fitch and Marks and Spencer , which decided last year to close five stores in smaller cities to focus on flagship stores in large cities and online.

    “Most of the Western fashion labels that are mid-range fail in China. A large part of it is that the styles and the fit are so completely different,” said Shaun Rein, founder of market intelligence firm China Market Research.

    LOCAL TASTES, LOCAL SOURCING

    New Look, a chain founded in 1969 and bought last year by Wiese’s investment vehicle Brait SE, does not want to make the same mistake. It now runs 94 stores in China, out of a global total of 852, and hopes to have up to 150 by next March.

    “I will definitely give it a try if it is a foreign brand and as long as I like it,” said Chen Jie, a 32-year-old businessman from Shenzhen who was carrying an H&M bag in a shopping district in Hong Kong. “Price is not an issue but the design and quality must be good.”

    While New Look is cashing in on the popularity in China of British style – it is adding the “London” tag to its logo for its Chinese stores and website – it is also catering for local tastes.

    Sven Gaede, managing director of New Look’s international business, says the firm has an advantage over many European rivals as 85% of what it sells in China is sourced locally and more than a third is designed exclusively for China.

    That has allowed New Look to tap into the current popularity in Asia of culottes – flared, three-quarter length trousers. Gaede said they account for 12% of the firm’s sales in China, though they are not popular in its European markets.

    “South Korea and Japan drive a lot of the trends that the Chinese customer seeks, so our ability to be able to identify those trends, source them locally and get them into our stores quickly is key,” said Gaede.

    That helps explain the success of the Uniqlo chain of Japan’s Fast Retailing in China, which already has almost 500 stores in the country and is aiming for 1,000 stores in about five years – more than in Japan.

    “It’s pretty hard for the foreign fast brands to do the localisation that Uniqlo does in China as it was born with the Asian gene,” said Violet Shen, a marketing executive in Shanghai.

    The “fast fashion” model was pioneered by Inditex, which can bring new styles from the catwalk to stores in Europe within days from factories mostly in Spain and North Africa. However, Inditex does not have the same advantage in China.

    Inditex plans to add 60 stores in the next few years to the 582 it already runs in China, but it serves them from its logistics centres in Spain.

    “As their proportion of sales increases in the East, it challenges this model. You can’t hub out of Spain,” said Dominic Jephcott, chief executive of supply chain experts Vendigital.

    New Look is not the first Western retailer to try to bring the Inditex model to China.

    Denmark’s Bestseller, which runs brands like Vero Moda and Jack & Jones, says over 90% of its products sold in China are also produced in China and most of the designs for the Chinese market are adjusted to local tastes.

    That has helped the family-owned firm to become the clear leader in China, with more than 6,800 stores in over 300 cities, to give it a 2% share of the fragmented market, according to market research firm Euromonitor.

    Anders Kristiansen ran the China business of Bestseller before taking over as New Look chief executive in 2013. Gaede said Kristiansen’s experience in Asia is one of the reasons behind the group’s aggressive expansion strategy.

    H&M also buys many of its garments in China – the country accounts for about a quarter of its global sourcing.

    But the Swedish firm does not make a big point of adjusting its ranges for China, where it has opened 47 stores in the last nine months, taking its total to 400.

    “We see that fashion becomes more and more global and that China doesn’t differ much from the rest of the world regarding trends and fashion,” said investor relations head Nils Vinge.

    “There are of course local differences but that is true for every market. H&M has a business model that can adapt to this,” Vinge said, declining to elaborate.

    Rein of China Market Research says Western brands must strike a delicate balance.

    “You have to keep your global brand image and you can’t be that creatively different in China than other markets. The Chinese travel around the world,” he said. “It is good to localise. But it hard to localise an aspiration.”

    STORES VS ECOMMERCE

    A bigger challenge for New Look may be to secure the right locations, especially as rivals also seek to add hundreds of stores in the coming years.

    “To find 500 stores of real estate and roll that out in the right way … I think it is virtually impossible,” said Franklin Yao, managing partner at strategy consultants Smith Street.

    But the more established New Look’s brand becomes in China, Gaede said, the better the locations and terms it will be offered, adding that the firm was now pushing into smaller cities.

    “We are less wedded to the number each year and we are more wedded to getting quality locations,” he said.

    Meeting soaring Chinese demand for buying clothes online is also tough.

    Most international brands initially launch on Chinese ecommerce sites like JD.com and Alibaba’s Tmall and Taobao, but are keen to build up their own online operations to protect margins and integrate ecommerce and store services.

    New Look is currently available on Tmall and JD.com, but plans its own transactional site in the next 12 to 18 months.

    Partnering with Chinese sites and local payment and delivery service providers is essential to reach consumers across such a vast country, said Vendigital’s Jephcott.

    “It is a hard physical push and a very hard digital push, all premised on a strong relationship with the logistics partner like Taobao,” Jephcott said, noting that Taobao has established a delivery network of micro-stores even in small towns.

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  • Fast Retailing profit rebounds

    Fast Retailing profit rebounds

    While Fast Retailing profit fell in the full year, the Japanese apparel giant says its second-half profit rebounded sharply.

    Consolidated revenue rose 6.2 per cent to JP¥1.7864 trillion (US$17.19 trillion) while its operating profit fell 22.6 per cent to ¥127.2 billion.

    Factors underlying the sharp decline in profit include a ¥11 billion foreign-exchange loss, a ¥13.8 billion J Brand impairment loss, and ¥9.3 billion for impairment losses on Uniqlo Japan and Uniqlo US stores, plus retirement and store-closure losses.

    In the second half, from March to August, profit rebounded by 94.3 per cent year-on-year, attributed to a nascent recovery in sales at Uniqlo Japan and Uniqlo International, and concerted cost-cutting efforts.

    For Uniqlo Japan the second-half profit bounced back by 38 per cent. Revenue for the year was ¥799.8 billion, up 2.5 per cent, with profit dropping 12.6 per cent to ¥102.4 billion. Same-store sales rose 4.9 per cent in the second half compared to a 1.9 per cent decline in the preceding six months.

    For Uniqlo International, full-year revenue was up 8.6 per cent to ¥655.4 billion while profit fell 13.7 per cent to ¥37.4 billion. In the second half, however, profit rebounded to 15 times the previous year’s level, mainly because of sharp profit gains in Uniqlo Greater China (encompassing China, Hong Kong and Taiwan), Southeast Asia and Oceania, and Europe.

    For the group’s global brands, revenue rose 11.3 per cent while profit fell 34 per cent for J Brand, revenue rose 32.7 per cent and profit by 34.8 per cent for GU, profit was also up for Theory, while Comptoir des Cotonniers, J Brand and Princesse Tam.tam had losses.

    During the 12 months, Uniqlo International opened a series of stores, including its first global flagship store in Southeast Asia, the Uniqlo Orchard Central store in Singapore. As of August 31, the number of Uniqlo International stores had grown by 160 to 958.

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  • Fast Retailing rolling out GU shops overseas

    Fast Retailing rolling out GU shops overseas

    Japanese retail holding company Fast Retailing intends to have 1000 shops for its low-cost GU brand overseas in 10 years, up from about 10 foreign stores now.

    GU sells clothing often priced at about half that of stablemate Uniqlo.

    Fast Retailing will expand GU first in Asia, where Uniqlo has been successful, says chairman/president Tadashi Yanai.

    After increasing its GU outlets in Taiwan and China, Fast Retailing will turn its attention to South Korea, Hong Kong, Thailand and Singapore for growth in the next five years.

    GU’s first overseas store opened in 2013. In Japan, the brand’s low prices and sensitivity to fashion trends have helped store numbers grow to around 350.

    Meanwhile, Uniqlo now has more stores overseas than in Japan, with plans to set up around 100 shops a year in China.

    Other brands under Fast Retailing’s wing include Comptoir des Cotonniers, J Brand and Princesse Tam-Tam.

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  • Changi Airport places third in the world for shopper spend

    Changi Airport places third in the world for shopper spend

    It is not uncommon to see avid traveller Cara Lee lugging numerous shopping bags up the aeroplane – not on her way back from her travels, but at Changi Airport on her way out.

    The 26-year-old account manager at a media intelligence company spends about $180 on skincare and cosmetics at Changi Airport every time she flies out – two to three times a year. “I like that there is a wide array of retail options and the spacious aisles of the transit area. It makes shopping at Changi Airport enjoyable,” says Ms Lee, who last shopped at the airport three weeks ago, while waiting for her flight to the Maldives. Then, she shelled out $132 on cosmetics and skincare products from brands such as Benefit and Clinique.

    Singapore shoppers like her contributed about 20 per cent to the $2.2 billion Changi Airport made in total retail sales last year – placing it third in the world for highest traveller spend, according to a study by Swedish duty-free and travel retail consultancy Generation Research.

    The $2.2-billion figure is up 8 per cent from last year, with wines and spirits the most popular items, followed by cosmetics and perfume. South Korea’s Incheon International Airport ranked first and Dubai’s International Airport was second.

    The results come as no surprise to the Changi Airport Group, which has been expanding its retail space and launching new concepts to entice travellers.

    The Shilla Beauty Loft at Terminal 3’s transit area, which opened last October, for instance, was the result of close collaboration between the airport group and the store’s operators The Shilla Duty Free Singapore.

    After about two years in the works, the idea to open the South Korean brand’s first luxury spa concept in the world came to fruition. Customised for weary travellers, the two- storey outlet sells products from brands such as Dior, Chanel, SK-II and La Prairie on its lower level, and offers spa services on its upper floor.

    Services – such as 15-minute facials and neck massages – are tailored for travellers on a tight schedule.

    Spanish brand Zara’s first duplex store in an airport opened in Changi Airport in August last year. Exclusive items such as Hugo Boss’ alarm-safe leather belts are available at the airport. There are also exclusive global product launches, such as one for SK-II’s Radical New Age Power cream and essence in July last year, which saw home-grown actress Rebecca Lim speak about her travel must-haves.

    The secret is also to offer a mix of high-end and mass-market brands such as Japanese clothing brand Uniqlo, says Ms Teo Chew Hoon, senior vice-president of airside concessions at the airport group. She calls this “a holistic strategy”.

    Retail space at Terminal 1, she says, expanded by 15 per cent to 20,000 sq m after an upgrade that was completed in 2012.

    But she points out that quantity is just one part of the equation. “Passengers who are well-travelled are generally more sophisticated in their expectations. Beyond attractive product offerings, we augment our retail proposition with innovative concepts and unique experiences.”

    Encouraging more spending, the airport’s e-commerce site iShop Changi.com was introduced in 2013, allowing travellers to shop from home two weeks before their flight. The items bought online are picked up before boarding their departure flight here or on arrival at the airport.

    The transit areas are also more like shopping boulevards than waiting rooms, giving shoppers a wide view of the myriad stores.

    Terminals 2 and 3 boast lush greenery and unique roof structures to let natural light in.

    It looks like spending at Changi Airport is set to head north. Terminal 4, which will open next year with a total retail space of about 17,000 sq m, will have more than 80 retail and dining outlets occupied by tenants such as American fashion label Michael Kors and home-grown shoe and accessories brand Charles & Keith. It will also have a walk-through duty-free store, two-storey-high ceilings and heritage-themed shopping zones, such as shops with facades of Peranakan shophouses.

    Meanwhile, the upcoming Jewel Changi Airport, opening in 2019, will dedicate 70 per cent of its 300 shops to retail, with the remainder for food and beverage outlets.

    Ms Wendy Low, executive director and head of retail at Knight Frank Singapore, attributes the high traveller spend at the airport to the “constantly updated retail layout as well as trade and merchandise offerings”, and the “thoughtful creation of amenities and relaxation spaces across the various terminals”. She adds: “This speaks of a customer- centric approach that is increasingly important in appeal for travellers.”

    Retaining that excitement through exclusive launches and products is especially important to keep up with the fast-evolving beauty industry, says Ms Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore, as “the Internet- savvy consumers of today can be as fickle as they are discerning”.

    Other experts such as Ms Sarah Lim, a senior retail lecturer at Singapore Polytechnic, says the layout of shops and signage play a “very important role”.

    “At Changi Airport, they put the food outlets and seating areas in the centre for travellers to have a coffee and take a break from shopping, and signage are placed there to encourage shoppers to check out the shops on either sides of the terminals,” she says. “This encourages shoppers to keep spending.”

    Tenants have also helped to make shoppers feel at home.

    At the Montblanc outlet in Terminal 3’s transit area, staff wear flag pins to denote the languages they speak – Mandarin, English or Bahasa Indonesia.

    And considering that 30 per cent of Changi Airport’s shoppers are from China, brands such as Lacoste ensure that their staff can speak Mandarin.

    At Lacoste’s airport outlet, where customers from China account for 25 to 30 per cent of sales, non- Mandarin-speaking staff are sent for basic Mandarin classes.

    While the brand declines to share sales figures, its brand manager says the Terminal 2 store is its best- performing one out of the nine outlets in Singapore. Sales there, he adds, are 12 per cent more than its second best-performing store at Wisma Atria in Orchard.

    At The Shilla Duty Free Singapore store, duty rosters are scheduled to ensure that there is a mix of Mandarin-, English- and Korean-speaking staff on the shop floor at all times.

    But what really makes travellers part with their money is that they do not have to pay tax. Some items, such as cosmetics, can be up to 40 per cent cheaper than identical ones sold in town.

    Ms Nurul Ain Azman, who shops at the airport at least once a month, likes shopping there because she can save money. She sometimes waits till she travels before buying items such as cosmetics from high-end labels.

    The 28-year-old, who works in a bank and last shopped at the airport last month and bought skincare items from The Body Shop, says: “I save at least 7 per cent and even more in transit – make-up products there are cheaper by at least $5 a product. I once bought a lipstick for $30 and found it was selling for about $40 outside.”

    Shoppers who shop in the public areas can save on the 7 per cent goods and services tax at participating stores if they have the Changi Rewards Card, which they can register for free of charge.

    Ms Nurul also cites the airport’s ample carpark space and proximity to the MRT station as plus points. “It is so convenient. Every time I need to restock on products, Changi Airport is the first place that comes to mind.”

    What to buy at Changi Airport

    The Shilla Duty Free Singapore

    What it carries: This Korean beauty department store stocks more than 140 international beauty and make-up brands such as Jurlique, Urban Decay, Shu Uemura and Philosophy. Prices are up to 40 per cent lower compared with the exact same items in town.

    Brands exclusive to Shilla in Singapore are Korean beauty brand su:m37o- known for its face-cleansing stick Miracle Rose – and Aupres, a cosmetics and skincare line by Shiseido for the Chinese market.

    The store also has a beauty loft on the second floor, housing Dior Beauty House, Luxury Skincare Bar by La Prairie, SK-II Pitera Lounge and a Chanel beauty salon. Here, travellers can treat themselves to facials, massages, free flash makeovers and one-on-one skin consultations. At Dior, they can get a perfume expert to help them find their signature scent.

    The Chanel beauty salon and La Prairie services are by invitation only. For Luxury Skincare Bar by La Prairie services, invitations are extended to customers who buy the brand’s products at Shilla stores. Travellers are advised to book in advance for the SK-II lounge (call 6241-0756 or 9352-3687).

    Best buys: Travel-exclusive Tokyo Doll make-up palette with eight eyeshadows, two blushers and two brushes (above, left), $93, from Shu Uemura; and SPF50+ essence UV sunscreen aqua booster (90ml bottle, above, far right), $43.20, from Anessa. Prices are without tax and are accurate at the time of printing, but are subject to change.

    Where: Terminal 3 Department Transit Central store, open: 6 to 1am daily, tel: 9155-7695

    Hugo Boss

    What it carries: The brand’s traveller leather belts, which can be bought only here, are reversible with a different colour on each side, such as black and brown or dark orange and dark brown.

    The belt’s metal buckle is designed so that it will not set off the alarm during security checks. The belts are priced between $382.24 and $419.63.

    The brand’s Boss, Boss sportswear and Boss Green lines, including shoes and accessories for men, are available here as well. Prices range from $90 for a T-shirt to about $1,400 for a leather jacket.

    Best buys: Yellow Signature S zip clutch (above, left), $765.42; and black leather Nokam jacket (above, right), $1,400.93

    Where: 026-058 Terminal 2, open: 6 to 1am daily, tel: 6214-0495

    Zara

    What it carries: This store, the first duplex the Spanish brand has opened in an airport, offers apparel and accessories for men and women.

    The brand’s latest Autumn/Winter 2016 collection is available – the women’s range is on the first floor while the men’s range is upstairs.

    Prices range from $9.90 for a 10ml bottle of perfume to $339 for a men’s full leather jacket.

    Best buys: Brown chelsea boots for men (above, left), $148; and metallic pink jacket for women (above, right), $148

    Where: B2-02-10A Terminal 3, open: 6 to 1am daily, tel: 6241-7120

    The Fashion Gallery

    What it carries: This multi-label store offers items from more than 30 luxury brands including Moschino, Alexander McQueen and Bottega Veneta, as well as a selection from mid-range shoe brand Melissa. Shoppers are encouraged to accessorise, with display areas laden with handbags, sunglasses, shoes and jewellery.

    Prices range from $45.79 for a gold-plated necklace by Estella Bartlett to $64,200 for a diamond and white-gold necklace from Bulgari.

    Best buys: Canvas slip-on with eye pattern (above, left), $240.87, from Kenzo; and small leather biker jacket handbag (above, right), $2,336, from Moschino

    Where: Terminals 1 and 2, open: 6 to 1am daily, tel: 6593-4618

    Saint Laurent

    What it carries: The brand’s full travel range, available only at the airport store, with items such as passport holders, pouches and cardholders. Prices for the travel range start at $260 for a canvas cardholder and go up to $2,450 for a canvas duffle bag.

    The store also carries the French brand’s best-selling accessories and handbags, most of which are in neutral colours such as black or beige. Prices range from $281 for a leather cardholder to about $3,972 for the classic Sac De Jour handbag in embossed-croc calf leather.

    Best buys: Small Sac De Jour handbag in black calf leather (above, left), $3,729; and Downtown Cabas handbag in dark grey (above, right), $2,916

    Where: 026-074 Terminal 2, open: 6 to 1am daily, tel: 6214-9647

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  • Uniqlo: The Shopping Experience of the Future Awaits All Runners!

    Uniqlo: The Shopping Experience of the Future Awaits All Runners!

    Was there a stampede when the new Uniqlo Global Flagship Store opened its doors at Orchard Central on its first day of business? That depends upon your definition of the world.

    The store, the latest and greatest in the brand’s 25-store empire, has captured the imagination and attention of Singapore shoppers who were ready to have their shopping experience enhanced after hearing and reading about the store’s impending debut.

    Is this a new, improved and enhanced experience for shoppers who love the brand? Probably. And that includes those have yet to indulge their shopping fantasies at any of the other Uniqlo locations.

    Fact is, Mr. Taku Morikawa, UNIQLO Southeast Asia CEO, has pinned some serious hopes on this mega-store becoming a significant influence on the Singapore shopping scene. He sees the re-imagined retail environment as a role model for future locations in markets like India and Vietnam.

    Why launch a re-imagined Uniqlo facility in Singapore? What do you think? We’re the epicentre of commercial growth in southeast Asia and a pivotal test market for savvy consumers who know a unique shopping experience when they see it. But we’re selfish!

    As runners, we want to know what’s in it for us if we divert our dollars and loyalty to the retail new kid on the block, so we’ve come up with compelling reasons why you may want to head for Orchard Central the next time you require a different kind of shopping experience.

    Uniqlo: The Shopping Experience of the Future Awaits!

    L-R: Mr. Desmond Tan, Mrs. Helen Khoo, Mr. Cheng Wai Keung, Mr. Tadashi Yanai, Mr. Taku Morikawa, Ms. Rie Aramoto, Ms. Rebecca Lim.

    Uniqlo is a sensory playground

    Sunglasses not required, but expect to be hyper-stimulated when shopping for trendy fashions amid the store’s 286 digital displays that can’t be ignored, even if you tried.

    As a matter of fact, you can tell your running buddies that you were witness to the largest number of digital screens in the worldwide Uniqlo family of stores, so even if you’re fatigued, the bold graphics and attention-getting data will keep you alert and interested as you browse and buy.

    One word of warning: if you’re tempted to strike up a conversation with any of the 350 iconic rotating mannequins you encounter on the premises, think twice! They’re part of the magic.

    Uniqlo: The Shopping Experience of the Future Awaits!

    The Uniqlo experience is unique

    Unlike most upscale retail emporiums, Uniqlo has no intention of being labeled as ordinary. Runners can choose from brands, labels and looks they can find elsewhere.

    Sure, you’ll find familiar labels but they’ll be keeping company with fresh, innovative designs and collections produced “with design-conscious shoppers in mind,” says Ms. Mavis Seow, Chief Operating Officer, Retail Business Group, Far East Organization.

    This is the place to see and be seen; as much a social hub as a fashion epicentre. You can even get in some exercise within the 29,000-foot “mammoth store” that even offers a some vertical action if you decide to cover every inch of all three floors filled with merchandise.

    By the way, you won’t be able to escape checking your form as you shop; this super-store is loaded with floor-to-ceiling mirrors.

    Uniqlo: The Shopping Experience of the Future Awaits!

    A store for all ages and stages of life

    Because Uniqlo’s parent company, Fast Retailing, has set a high bar for the type of merchandise that fills this Uniqlo location, you’re going to run into some of the latest trends on the international apparel market.

    The Singapore flagship store has something for everyone, so if you do the family shopping and you’re responsible for everything from school clothing for the kids to gifts for running buddies, this could become your new retail home or just the place you go for plenty of shopping therapy.

    Speciality products just for children feature original art, and you can even experience some hometown pride when strolling the second-floor children’s boutique where the work of Singapore’s whimsical and popular illustrator, Michael Ng, is on display.

    Uniqlo: The Shopping Experience of the Future Awaits!

    Find everything you need and want

    Given Uniqlo’s promise to make sure shoppers are never bored by choices they are offered when perusing three floors of merchandise, you may be surprised to learn that there’s a special emphasis on exclusivity.

    For example, French designer Ines de la Fressange’s collection could get a fashion-forward runner’s pulse rate up and Uniqlo’s proprietary LifeWear brand is a runner’s dream. Garments are fashioned of innovative fabrics that are light, breathable and practical.

    Uniqlo: The Shopping Experience of the Future Awaits!

    Find AIRism inner and outerwear on shelves that include t-shirts and tank-tops that repel bacterial and odor. Even Uniqlo jeans are runner-friendly because the denim is 20-percent lighter than regular-grade denim, so sliding on a pair for a post-marathon party consumes less time than it takes to say, “Who’s going to Uniqlo with me to check out this one-of-a-kind shopping experience?”

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  • Singapore flagship leads Uniqlo Asia plan

    Singapore flagship leads Uniqlo Asia plan

    Japanese casual-clothing chain Uniqlo’s new store in Singapore takes up three floors – and marks its biggest gamble in Southeast Asia yet.

    In the Orchard Road shopping precinct, the 2700 sqm Uniqlo Singapore flagship is the brand’s largest store in the region. Its parent, Fast Retailing Co, is opening Uniqlo stores in the US, London and across Asia to help reduce its dependency on its home market where household spending is falling.

    Uniqlo Singapore - Orchard store 1

    Uniqlo has about 130 outlets across Southeast Asia, opening a six-storey China flagship store in Shanghai a year ago. Chairman Tadashi Yanai says he has plans to open 100 stores a year in China on it way to a potential 3000. There are about 30 stores each in Malaysia, Thailand and the Philippines.

    Uniqlo Singapore - Orchard store

    Meanwhile, in Japan Uniqlo closed a net six stores in August, as same-store sales decreased by 1 per cent year-on-year. Sales at company-owned stores slipped by 0.5 per cent, but the company’s increasing online business saw overall sales increase by 0.2 per cent.

    Uniqlo cited cooler temperatures in the first half of the month and heavy typhoons from mid-month onward for the store sales decline.

  • Uniqlo overseas push pays off for Fast Retailing

    Uniqlo overseas push pays off for Fast Retailing

    Fast Retailing raised its full-year earnings forecasts after sales at its Uniqlo casual-wear stores in China and South Korea grew more strongly than expected during the first half of the financial year, showing its overseas expansion is bearing fruit.

    Overseas growth is key to the Japanese firm’s goal of becoming the world’s top apparel retailer by 2020 ahead of Zara owner Inditex, Hennes & Mauritz and Gap.

    Chief executive Tadashi Yanai said Fast Retailing would have more Uniqlo outlets overseas than in Japan by this autumn, with openings in mainland China, Hong Kong and Taiwan to continue at break-neck pace.

    “Maybe in about five years, we’ll have 1,000 stores [in China],” he said, compared with 415 at the end of February. “Eventually we want to have about 3,000 stores [there].”

    Uniqlo, known for its HeatTech fabric technology and rainbow-coloured basics, now has close to 1,600 stores globally, with about 46 per cent of those outside Japan.

    Fast Retailing said it now expected operating profit of 200 billion yen for the financial year to August, up from its previous estimate of 180 billion yen. The average forecast of 22 analysts was for 197.25 billion yen.

    Asia’s biggest apparel retailer also bumped up its revenue forecast to 1.65 trillion yen from 1.6 trillion yen and its net profit estimate to 120 billion yen from 100 billion yen.

    Overseas sales at Uniqlo jumped 49 per cent in the first half from a year earlier, led by China and Korea, although the United States remained a weak spot. The firm did not break out sales results by country, only saying whether they met its targets.

    In Japan, sales rose 12 per cent during the period as shoppers snapped up items like its ultra-light down jackets and extra-fine merino sweaters.

    Fast Retailing also got a boost from the yen’s depreciation, booking a 13.5 billion yen foreign-exchange gain for the six-month period.

    But the company also warned it was facing rising import costs from the weaker yen. As a result, it will raise prices by 10 per cent on average for roughly a fifth of its products in the next autumn/winter season at Uniqlo Japan.

    Shares in Fast Retailing have gained 10 per cent in the year to date, while the Topix Index is up 13 per cent.

    Separately, Britain’s Co-operative Group, the supermarkets-to-funerals operator that almost collapsed in 2013, said it had been rescued by selling assets including its pharmacies and could now focus on rebuilding.

    Co-operative reported pre-tax profit of £124 million for the year to January 3, against a loss of £255 million a year earlier, on revenue of £9.4 billion, helped by disposals.

    The mutually owned group said it had emerged from the rescue phase of a three-year turnaround as a slimmer business focused on its food stores, funerals, insurance and legal services. It has cut net debt to £808 million from £1.4 billion.

    Chief executive Richard Pennycook said the hard work of rebuilding the group was under way after the completion of its rescue plan.

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  • Differentiation can make or break Singapore brands as competition heats up

    Differentiation can make or break Singapore brands as competition heats up

    Consumers are hungry for novelty, innovation.

    Tight competition online and a tough operating environment have pushed many offline retailers—especially in the footwear and apparel sub-sectors—to downsize or flee Singapore.

    However, RHB noted in a report that brands that are able to spin unique selling point will weather the sector headwinds well, as consumers continue to be attracted to novelty and differentiated experience.

    “H&M, for instance, has numerous sub-collections each year to refresh its inventories. It also rolls out special collections each year, which are tie-ups with famous brands’ designers or style icons… Uniqlo, on the other hand, is known for its product innovation including HeatTech and AIRism technologies catered specially for cold and warm weather, respectively,” RHB stated.

    Meanwhile, BreadTalk comes out on top in terms of product innovation and willingness to experiment.

    “BreadTalk launched a new bakery concept every four years to maintain a fresh brand image. It also rolled out 50 new products along with its latest concept launch,” RHB noted.

    “Furthermore, the group is also up to date in using technology to engage customers. It is planning to build a new integrated system that allows the public to view its kitchen baking processes on external screens. The new system will also allow consumers to get alerts when new buns are up on the shelves,” it added.

  • Two more Kuala Lumpur malls opening

    Two more Kuala Lumpur malls opening

    Two Kuala Lumpur malls, collectively offering more than 2 million sqft (185,806 sqm) in net lettable area, will open in Cheras, Klang Valley, by the end of the year.

    Moreover, the MyTown Shopping Centre (below picture) and Sunway Velocity Mall (above picture) will be just 800m away from each other.

    Cheras already has the Aeon Maluri shopping centre and Cheras Leisure Mall, with The Tun Razak Exchange also on the horizon, reports The Star.

    MyTown is being developed by Boustead Ikano while Sunway Velocity Mall is a Sunway Groupproperty. MyTown will be structurally linked to Ikea Cheras, the largest outlet mall in Malaysia.
    With a population of 800,000 people, Cheras is an “ample market”, says Sunway Shopping Malls & Theme Parks CEO HC Chan.

    myTown mall Malaysia

    “Fundamentally, the real issue is the absence of lifestyle and experiential malls in Cheras – Sunway Velocity Mall fills this void. I am looking from a quality rather than a quantity perspective… we are addressing this from multiple angles.”

    Boustead Ikano GM Jo Hogsander agrees there is demand for more retail space, especially in Cheras. He says that when the MRT line opens it will ease traffic congestion and boost accessibility to the mall.

    “Game changer”

    Chan also sees the MRT as a “game changer”. “Two out of six MRT stations in Cheras will serve Sunway Velocity, which translates to a capacity of about 400,000 passengers a day.”
    He says Sunway Velocity Mall would not only compete, but also complement the MyTown Shopping Centre.

    “Competition is healthy, but in the longer term we will complement each other. Just look at the Bukit Bintang area and the number of malls there. It’s thriving because it gives consumers a choice.”
    Despite the number of malls in the Klang Valley, Hogsander says they are still crowded, even on a weekday afternoon.

    “I went to our competitors on a Thursday afternoon and couldn’t find a parking space. I then went to another competitor and had to do laps to find parking – and these are big shopping centres with more than 6000 parking bays.”

    Sunway Velocity Mall and MyTown Shopping Centre will open on October 28 and November 15 respectively, 18 days apart. Both malls boast 6500 parking bays.

    Sunway will have a NLA of 1 million sqft and accommodate 500 shops, while MyTown will have 460 stores on 1.1 million sqft of space.

    Sunway Velocity Mall’s anchor tenants include Harvey Norman, Parkson, TGV Cinemas and Toys’R’Us, while MyTown has secured such brands as Golden Screen Cinema, Mango, Uniqlo and Village Grocer.

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  • Uniqlo Thailand launching online store

    Uniqlo Thailand launching online store

    Japan’s global fashion label Uniqlo Thailand is launching an online store, offering its full Thai range.

    The online store will help strengthen the firm’s “made for all” brand promise, says Uniqlo Thailand marketing and PR director/head of eCommerce Chanvit Khieonavavongsa.

    After nearly five years in Thailand, Uniqlo has 32 branches in nine provinces, covering about a third of the population. The eCommerce channel will meet the demand from customers in areas where the brand does not have an outlet.

    Exclusive to the Thai online store, Uniqlo will offer a cash-on-delivery service to cater for consumers who are still not confident about using credit cards for online transactions.

    Chanvit says the online channel will not affect Uniqlo’s expansion in the kingdom.

    “As long as there are good locations and customers, we will open a store,” he says. “There is no intention of reducing the opening of branches.”

    Two branches opened in the first half of this year, with two more to follow in September, at Blu Port in Hua Hin and at the Mall Korat.

    The online store is the brand’s 12th worldwide, with similar stores launching in Singapore in 2014 and in Malaysia last year.

    Uniqlo has assigned Singapore Post to handle logistics and deliveries for online orders, with guaranteed nationwide delivery of between one and three days. There is no delivery fee, while the packaging charge is waived for orders of Bt1500 (US43) or more. Customers have 30 days to return their goods to the company if they are not satisfied.

    Scheduled to go live on Friday, the online store will offer exclusive items and collections such as Kaws companion t-shirts and the HeatTech line of thermal wear. The mark the launch, there will also be special prices for popular items.

    Chanvit says the eCommerce expansion is part of Uniqlo’s global target to have 30 per cent of its sales derived from the online channel by 2020. The brand has already built awareness online in Thailand through Line, where it has 12 million subscribers, and Facebook, where it has had more than 1 million likes. Further awareness will be built through an integrated marketing communication plan across offline and online channels nationwide.