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Tag: Wing Tai

  • Wing Tai shrugs off negative sentiment

    Wing Tai shrugs off negative sentiment

    Malaysian apparel retailer and property investor Wing Tai says it remains confident that the nation’s retail sector will bounce back in the wake of the GST-driven retail sales downturn.

    The company has reported a 41.8 per cent slump in profit in the three months immediately following the April 1 introduction of Malaysia’s modest six per cent goods and services tax on considerably sales revenue which more than halved – from RM146.6 million to 66.5 million.

    While the fall in revenue was more attributable to the property division rather than its retail interests, the company noted its retail profit margins were affected by higher import costs due to the weakening ringgit and subdued consumer spending.

    “While the retail (division) outlook is expected to be challenging in 2015 with weak ringgit and soft consumer spending, the retail division will continue to streamline its operations to enhance its performance,” Wing Tai said in its earnings statement.

    “In consideration of the prevailing market conditions and barring any unforeseen circumstances, the group expects to remain profitable for the next financial year,” it said.

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  • Arcadia Malaysia partner rules out expansion

    Arcadia Malaysia partner rules out expansion

    Wing Tai, the corporate retailer which partners with Uniqlo and a raft of other brands, including the Arcadia Malaysia stores, says it is streamlining its retail business.

    The listed company has 85 retail stores in Malaysia’s major cities under 12 international brands – Topshop, Topman, Dorothy Perkins, Miss Selfridge, Warehouse, Karen Millen, Pumpkin Patch, Wallies, BCBG, Ben Sherman, Burton and Furla. It also has a 45 per cent stake in the joint venture with Japan’s Fast Retailing, operating 25 Uniqlo stores.

    Wing Tai GM of finance Lee Kong Beng says while the Uniqlo store network, targeting the value driven fast fashion customers, will expand into suburban markets, the Arcadia brands like Topshop and Topman have reached their limits in Malaysia.

    “We will not expand (the Arcadia brands),” he told a press briefing this week.

    He said while there were no current plans to close Arcadia stores, if any store failed to generate positive cashflow or profit it would be cut.

    “For retail, we’d just consolidate because it’s challenging. So no point being a hero, where you open outlets and the sale is not there.”

    Lee said the company was finding the current retail market in Malaysia challenging following the introduction of GST on April 1, which consumers are slowly adjusting to.

    An influx of tourists was bolstering the group’s earnings, with spending holding up in stores in high profile shopping malls.

    “We expect retail sales to pick up because of the weakening of the ringgit, so it’s cheaper to shop in Malaysia rather than in Singapore. It’s a matter of time people get used to GST. We see that (retail sales) are more stabilised now,” Lee said.

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