Sunrise takes over Paris Paris MingTe department store

The Sunrise Department Store (中興百貨) will set up shop on the premises of its former Taipei rival, the Paris Paris MingTe Department Store (明德春天百貨), an executive of Sunrise said yesterday.

"Starting from June 1, the Paris Paris Department Store will officially change its name to the in Hsinyi Sunrise Department Store ," said Yang Shih-min (楊世民), general manager at Sunrise.

Located near the Yungchun MRT station, the Paris Paris Department Store is a seven-year old shopping complex on Chunghsiao East Road, Sec 5. The commercial entity and the property belong to the Derjie Group (德杰集團), owner and manager of the New York, New York shopping center.

The new arrangement involves renting the facility and commercial entity for an undisclosed amount.

Yang said he hopes the new store will have significant sales growth in the near future.

"We hope by year end the annual sales of the Hsinyi store will jump at least 30 percent over last year," he said.

According to the Taipei Department Stores Association, the Paris Paris Department Store's annual sales last year were NT$1.7 billion -- a 19 percent drop from the previous year.

Sunrise, located on the intersection of Taipei's Pateh Road and Fuhsing South Road, reported annual sales in 2001 of NT$2.66 billion, slightly down from NT$2.73 billion in 2000.

"This year, combining these two stores, we estimate to gain about an 8 percent market share, or NT$6.4 billion of Taipei's department store sales," Yang added.

To reach that target, the company will have to boost its customer base.

"Currently most of the store's main customers are citizens living in [the department store's] neighborhood, but we want to attract more consumers from other districts," Yang said.

In addition to men and women's fashions, home appliances and a supermarket, the company plans to introduce more products for younger customers.

One market pundit said the strategy may not be feasible.

"They may end up being neither," said Bei Lien-ti (別蓮蒂), associate professor of business administration at National Chengchi University.

It's hard to successfully create an image of both "community oriented" and "modern or premium," as the price gap is too big, she explained.

"A community oriented shopping center has to compete with hypermarts and other discount stores, and of course stronger competition," Bei added.

No matter if the strategy works or not, the consumers appear to be the real winners.

Yesterday, the store launched a huge sale, promising big discounts for up to a month on clothing and accessories.

Starting yesterday, the Paris Paris Department Store is holding a month-long sale. Most clothes and accessories can be bought at up to 90 percent off.

Many new retailers such as Polo Ralph Lauren, Jessica and Armani, which are going to set up displays in our new store, will also offer a 30 percent discount, Yang said.

"We hope to attract more customers with this event -- especially those who never been to Paris Paris before," he added.