Business

IKEA in shopping mall push

Source: 
Bangkok Post

IKEA, the world's biggest furniture retailer, plans to spend up to EUR3 billion (USD3.2 billion) on new shopping centres over the next 5-7 years, aiming to cash in on the popularity of its stores by collecting rent from retailers keen to set up nearby.

The Swedish company formed IKEA Centres last year to group its existing out-of-town shopping malls and retail parks, and further develop a real estate business out of its core retail chain that sells cheap, mainly self-assembly furniture.

Toys "R" Us Australia accumulates USD344m in losses

Source: 
The Sydney Morning Herald Online

Toys "R" Us, the self-described "world's first toy supermarket", has racked up accumulated losses of almost AUD450 million (USD343.9m) since arriving in Australia.

The US-based toy and baby products retailer has operated in Australia for more than two decades. It has more than 30 stores, 11 Babies "R" Us Superstores, online operations and about 1600 employees.

Researchers IBISWorld said it had lost market power over the past five years, but was the second-biggest player in the AUD850 million toy and game retailing industry.
 

Indonesia's 1st Aeon Mall to open in May

Source: 
Jakarta Globe

Shopping mall developer Aeon Mall Indonesia and real-estate giant Sinar Mas Land, have joined forces to open Indonesia's first Aeon Mall on 30 May, a company executive revealed on Wednesday.

The announcement confirms a report detailing the endeavour in GlobeAsia last October, which also quoted Sinar Mas Land director Ishak Chandra in estimating that the project would cost between USD150 million and USD200 million.

Hong Kong retail rents drop as Chinese shoppers stop

Source: 
CNBC

A drop in Chinese tourist numbers is driving down shop rentals in Hong Kong, with vacancies increasing in the same prime areas that just three years ago pipped New York's Fifth Avenue to become the world's most expensive retail real estate.

Spooked by months of cross-border tensions and pro-democracy protests, tour groups visiting Hong Kong from China plunged about 80 percent this month, dealing a blow to the retailers that had built their businesses around these mainland visitors' once insatiable demand.

Stores lure the internet generation in Thailand

Source: 
Bangkok Post

Hypermarkets, department stores, shopping centres and convenience stores in Thailand are all aggressively moving further into online services.

Their goal is to spur shopping from young consumers who have high spending power.

This month, Future Park Rangsit, Tesco Lotus, Central Group and Charoen Pokphand (CP) Group simultaneously launched online business strategies to boost their sales and attract the young generation to become their new customers. Moreover, their operation costs may fall and sales increase despite having no more retail space.
 

For HK, a chill sets in as rich China tourists shop elsewhere

Source: 
CNBC

Chinese tourists are rapidly deserting Hong Kong, leaving retailers who built businesses around once insatiable demand from mainland neighbours with bigger but emptier stores and squeezing the whole city's visitor-dependent economy.

With cross-border tensions exacerbated by pro-democracy Hong Kong protests, tour groups visiting Hong Kong from China plunged about 80 percent in early March. A Beijing crackdown on conspicuous spending by mainlanders also shows no signs of letting up, sending tourists further afield.

Samsonite Asia sales up 18pc in 2014, driven by China market

Premium luggage maker Samsonite posted strong double-digit sales growth in all regions in 2014, led by Asia and North America.

The company said on Tuesday that net sales for the year ended on 31 December 2014 grew 17.3 percent to a record USD2.35 billion from the prior year. Adjusted net income jumped 9 percent to USD206.3 million. Excluding currency swings, adjusted net income advanced 12.3 percent. Adjusted EBITDA climbed 13.8 percent to USD384.3 million. It has been the fifth year the luggage maker posted double-digit growth in both net sales and Adjusted EBITDA.

Myer may be planning to close stores

Source: 
The Sydney Morning Herald Online

Australian retail giant Myer could close seven stores to help reignite sales growth, analysts say.

The department store chain has a number of underperforming stores that could be closed to simplify the business and improve its financial performance, Citigroup analysts said.

Myer has 67 stores across Australia, mostly in capital cities, but also in regional centres including Bendigo, Ballarat, Dubbo, Orange, Wagga and Mackay. Sales could also be boosted by lifting staff numbers and spending more on marketing, the Citi analysts said.
 

China's luxury big spenders: young, trendy and not so rich

Source: 
CNBC

Global luxury brands expanding in China are better off targeting the HENRYs – "high earners, not rich yet" – instead of the ultra-wealthy, as a slowing economy and a government that frowns on official excesses usher in an era of less showy spending.

Automated technology to boost airport passenger spending

Source: 
The Sydney Morning Herald Online

Investments by airlines and airports in automated technology that helps passengers check-in, drop their bags and pass through security and immigration queues more quickly should pay off for airports in the form of higher retail spending, according to aviation technology group SITA.

SITA president of Asia-Pacific Ilya Gutlin said relaxed passengers were more open to shopping than those that had been stressed out before reaching the airport terminal.

Syndicate content