Shin Kong to challenge Taipei 101 Mall

Shin Kong Mitsukoshi Department Store (新光三越), Taiwan's biggest department store chain, is set to open a new outlet by the end of the year in Hsinyi district, boasting a lineup of luxury brands such as Chanel, Gucci and Armani, a company official said yesterday.

The opening is seen as a move to help Shin Kong fend off the challenge from Taipei 101 Mall, which is scheduled to open next month in the same area. But the company dismissed a direct link between the two openings.

"We're not particularly targeting Taipei 101," Eric Hung (洪炳棟), a Shin Kong sales manager, said yesterday. "We're trying to provide services and goods which differentiate Shin Kong from other shopping malls in the Hsinyi area, which has the highest density of department stores in Taiwan."

The new 16,000-ping Shin Kong outlet, called `A9' by the chain, will feature high-fashion international brands such as Christian Dior, Bally and Dolce&Gabbana as well as several restaurants. It is scheduled to open on Dec. 30.

Taipei 101 Mall could challenge Shin Kong head-on after the four-floor mall is open. The mall will play host to luxury brands such as Prada and Louis Vuitton on Level Three next March following the initial offering of brands like Mango, Sisley, Tommy Hilfiger and Gaultier on Level One and Two on Nov. 14.

Taipei 101 Mall will become Taiwan's largest shopping mall in terms of operating space, totaling 23,000 pings upon completion. When asked whether Taipei 101 Mall will pose a threat to Shin Kong, Hung said he did not see an immediate impact. Instead, he expects to see the synergy develop in the district.

"The opening of Taipei 101 Mall will lure more shoppers here," Hung said.

The Taipei 101 Mall is expected to attract about 50,000 shoppers to the area, according to estimates made by the mall operator in the middle of the year.

Shin Kong, which runs 10 outlets in Taiwan, expected its revenues to increase by about 11 percent this year to NT$45 billion from NT$40.6 billion a year ago, a company official said.

"The strong growth in revenues is mostly due to our better marketing strategy and an improved economic outlook, which will prompt local consumers to loosen their purse strings," said Shaun Lee (李香萩), an assistant sales manager at Shin Kong.

To further boost its sales, the retailer will hold an 18-day sale at its two outlets in Hsinyi district from Oct. 30 to Nov. 16. A series of warm-up sales for the new "A9" outlet will be part of the annual event.

Shin Kong's Hsinyi outlets contributed more than NT$6 billion in revenues last year. The figure is expected to grow by 10 percent this year, Hung said. The annual sales are expected to add NT$1.3 billion to the company's revenues, he added.

In addition to the existing retailers, more department stores are trying to get a share from the thriving district. New York New York department store and the Neo 19 entertainment center are also hot shopping spots for consumers in the district.