Department stores expect record revenues

UPTURN::Shopping malls are expecting high sales revenue this quarter due to a recovery of the economy and a subsequent improvement in public spending

By Amy Su  /  Staff reporter

Mon, Oct 06, 2014 - Page 13

The nation’s major department store operators expected to generate record-high revenues during the yearly sales period, thanks to recovering private consumption, company executives said.

Shin Kong Mitsukoshi Department Store Co Ltd (新光三越百貨), the nation’s largest department store chain, expects overall revenues from its 13 outlets to grow 3 percent annually to NT$20.7 billion (US$678.69 million) during the annual sales period that began last month.

The company saw daily revenue from its Nanjing branch, which spearheads in launching annual promotions among local peers, hit a record high of NT$450 million on the first day of its 20th anniversary sale, that began on Sept. 25.

“Consumers’ buying sentiment has improved following the rebound of the nation’s economy this year,” Shin Kong Mitsukoshi vice president of operations Joseph Yang (楊宗榮) said.

The company has seen sales of household goods and dining sectors show the strongest momentum this year, posting a double-digit percent annual growth in the first eight months, Yang said.

The introduction of famous restaurant brand Din Tai Fung (鼎泰豐) into the department store might help boost the number of department store visitors, Yang said.

Far Eastern Department Stores Co (遠東百貨), which has 10 department stores and shopping malls in the nation, targeted an annual growth of 7 percent, which would bring the revenue to a record-high level of NT$11.14 billion, during the annual sales period.

As the department store chain has seen revenue rise 13 percent year-on-year in the first eight months of this year, Far Eastern sales assistant vice president Chuang Chien-hsiang (莊見祥) said the company was more confident about its sales performance in the annual promotional drive.

Far Eastern has seen revenue generated in the first four days of the promotion reach NT$880 million, up 10 percent from the same period last year, after launching its first-round annual sales event at Greater Taichung’s Top City (台中大遠百) on Sept. 25. The growth is in line with the company’s expectations.

Pacific Sogo Department Stores Co (太平洋崇光百貨), the other department store chain under the Far Eastern Group (遠東集團), said it hopes to generate a total of NT$10 billion in revenue from annual sales events this year, up about 7.5 percent from a year earlier.

“Better-than-expected sentiment in the department store sector this year has led the company to set a higher target for annual sales and for the whole year,” Pacific Sogo chairwoman Sophia Huang (黃晴雯) told a press conference.

The company attributed improving buying momentum to the rebound in the stock market this year, which has caused it to raise its annual sales target to NT$45 billion this year — an increase of 7.14 percent from last year — from its original goal of NT$43 billion.