Mon, Nov 06, 2017 - Page 16 News List

Anniversary sale to boost revenue for Far Eastern

OPTIMISTIC OUTLOOK:Far Eastern Group chairman Douglas Hsu expects a rise in revenue from the sale, as data show highest consumer confidence in 23 months

By Kuo Chia-erh  /  Staff reporter

Far Eastern Group (遠東集團) chairman Douglas Hsu (徐旭東) has expressed optimism about revenue generated during the anniversary sale period at Far Eastern Sogo Department Store (遠東Sogo百貨) amid improving sentiment in the nation’s private consumption sector.

“Taiwanese customers are more willing to spend money, partly because of a rally in the local stock market in recent months,” Hsu said at Far Eastern Sogo’s 30th anniversary event on Friday last week.

The benchmark TAIEX, which closed above 10,000 points for the first time in 17 years in May, ended up 0.11 percent at 10,800.77 on Friday. This year, it has risen more than 15 percent.

Sogo, operated by the group’s listed subsidiary Far Eastern Department Stores Ltd (遠東百貨), has set a sales target of NT$10.6 billion (US$351.32 million) for the 12-day sale period at its three outlets in Taipei, up from last year’s NT$10.5 billion. The retailer’s anniversary promotions are to start on Thursday and run through Nov. 20.

In Taiwan, department stores’ annual sale promotions usually occur in the fourth quarter, with retailers using coupons, gift certificates or discounts as a strategy to encourage consumer purchases.

However, one of the main purposes of such yearly activities is to make up the gap between retailers’ cumulative revenue and the whole-year sales target set at the beginning of the year, National Taiwan University associate professor of economics Fong Po-han (馮勃翰) said.

“Department stores decide promotional items and the scope of the discounts during the annual sale period based on actual revenue generated in the first three quarters of the year,” the Chinese-language Manager Today magazine quoted Fong as saying in a report last week. “They can also conduct a clearance sale for spring and summer items during this special period, while promoting new products for the autumn and winter season.”

Sogo’s anniversary promotions come after Taipei 101 Mall, Breeze Center (微風廣場) and Core Pacific City Mall (京華城) launched their sale activities in late September, which were followed by Shin Kong Mitsukoshi Department Store (新光三越百貨), Miramar Entertainment Park (美麗華百樂園), Uni-Ustyle Department Store (統一時代百貨) and Far Eastern Department Stores last month. Qsquare’s (京站時尚廣場) annual activities are scheduled to take place later this month.

Hsu’s optimistic remarks came after the latest economic data showed that consumer confidence reached its highest level in 23 months last month.

The government’s recent measures have played a role in boosting consumer sentiment, including its planned amendment to a controversial labor policy, he said.

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