Weekend sales booming

Skyrocketing retail sales over the weekend are proof that post-election political turmoil is waning and that retailers are using rising commodity prices to their advantage, an economist said yesterday.

"With commodity prices in an upward trend, retailers have showcased different promotional packages featuring high-priced products -- although not all of them are new merchandise -- to clear out their stock in exchange for more cash," Shia Ben-chang (謝邦昌), professor of statistics and information science at Fu Jen Catholic University, said yesterday.

"This is a business strategy to stimulate consumer spending," he said.

The nation's major department stores and consumer electronics shops were packed with consumers last weekend, the first weekend free of street rallies since the election.

"Business was better than expected," said Shin Kong Mitsukoshi Department Store (新光三越) spokeswoman Shauna Lee (李香萩).

Shin Kong's three outlets in Taipei generated NT$450 million in sales from last Thursday to Sunday after the retailer launched promotional events for Mother's Day, Lee said.

That figure represented an increase of 25 percent from the same period last year, when the SARS epidemic started to turn crowds away from public venues, she said.

Pacific Sogo Department Store (太平洋崇光百貨) also reported brisk sales. Since the retailer's promotional event began last Tuesday, the total figure in sales till Monday was NT$360 million, an increase of 20 percent from the same period last year, said sales promotion manager Hsu Shu-hsian (許淑賢).

"With longer store hours last Saturday [half an hour longer than usual], customer traffic and sales hit a new high, generating NT$65 million in sales," Hsu said.

Both department stores attributed their good business performances to female customers.

"Women account for 80 percent of our customer base, and their purchases of cosmetics products are the key to boosting sales," Pacific Sogo's Hsu said.

In addition to department stores, major electronics retailers are also doing well.

Two leading competitors, E-Life Mall Co (全國電子) and Tsann Kuen 3C (燦坤), have both extended their promotional activities from four days to six, wrapping up today.

Hsieh Wei-hsiung (謝維雄), E-Life's assistant vice president of merchandise and marketing, said sales from its 222 outlets nationwide jumped by 50 percent compared with the same period last year.

"This means that consumer confidence is bouncing back," Hsieh said.

Tsann Kuen, which has 134 stores, is offering deferred payment plans and no-interest 12-month, 24-month and 36-month installment programs to boost sales.

Its strategy was working, according to a company press release, as Tsann Kuen saw NT$700 million in sales from Friday to Monday.

"With sound fundamentals, the nation's economic outlook is looking up and the rebound in retail sales is here to stay," Shia said.