SRA Retailer Jan 2013.indd - Singapore Retailers Association

THE GREAT SINGAPORE SALE20 TH ANNIVERSARYCelebrating 20 Years of Great Deals!31 MAY – 28 JUL2 013

ContentsSRA COUNCILPresidentDato’ Dr Jannie Chan - The Hour Glass LtdVice PresidentsMrs Wong Sioe Hong - Metro (Private) LimitedMr R Dhinakaran - Jay Gee Enterprises (Pte) LtdHon SecretaryMrs Helen Khoo - Wing Tai Retail Pte LtdMessageDato’ Dr Jannie Chan, President, SRASRA NewsLatest Industry Events and Activites45Hon TreasurerMr Foo Tiang Sooi - C.K. Tang LimitedCouncillorsMr Alex Tay - Cold Storage Singapore (1983) Pte LtdMr Angelo Augustus - Pertama Merchandising Pte Ltd/Harvey NormanMr Charlie Teo - OSIM International LtdMs Cynthia Poa - ONI Global Pte. Ltd.Mr Franz Kraatz - Robinson & Co (S) Pte LtdMr Gerry Lee Kian Hup - NTUC FairPrice Co-operative LtdMr Kesri Singh Kapur - RSH LimitedEDITORIAL BOARDEditorLau Chuen WeiAssistant EditorJohn HirstRetail Training NewsLatest Training Course UpdateGreat Singapore SaleWhat’s Happening Around the Region?To keep abreast of what’s happeningin the regional retail scene, turn topage 14 for a round up of thelatest news around us67/8/910/11/12/13SECRETARIATSingapore Retailers Association371 Beach Road, #02-04/05 KeyPoint, Singapore 199597Tel: (65) 6295 2622Fax: (65) 6295 2722E-mail: info@sra.org.sgURL: http://www.retail.org.sgThe Retailer is published four times a year bythe Singapore Retailers Association.The quarterlies are issued in January, April,July and October.All rights reserved.No part of this publication may be reproducedwithout prior permission of the Editorial Board.DESIGNED BYC.J. GraphicsRIMSSRA’s Retail Industry Mystery Shopping Programme14CIRCULATION3,000 CopiesExclusively to the trade.2 The Retailer

GROOM YOUR RETAIL CAPTAINS OF TOMORROW TODAY!Scholarship Applications Open Now!Prepare Your Managers for more Challenging and Strategic Roles through theNational Retail Scholarships (Masters) Programme with theMBA in RetailingEligibilityApplicants must:• Be Singaporeans or Singapore Permanent Residents• Be currently holding a middle-management position, or higher• Have at least a Diploma certifi cate and at least 10 years’ work experience OR a Bachelor’s Degreewith at least 5 years’ working experience• Be nominated by their sponsoring retail employersApplication Closes for the National Retail Scholarships (Masters) Programme on 30 April 2013OREnhance the knowledge of your Retail Supervisors through theSRA-MasterCard® Retail Scholarships Programme with theDiploma in Retail ManagementEligibilityApplicants must:• Be Singaporeans or Singapore Permanent Residents• Have achieved a minimum of 5 GCE “O” level (including English) OR have a minimum Level 7 forEnglish Employability Skills WSQ-WPL (Comprehensive) and 5 years of working experience, ofwhich at least 3 years must be in retail environment• Have at least 2 years’ supervisory experience within a retail organisation• Be nominated by their sponsoring retail employersApplication Closes for the SRA-MasterCard Retail Scholarships (Industry Professionals) on18 March 2013Singapore Retailers Association is dedicated to helping yougroom your Retail Management Talents.Call Us Now at Tel: 6295 2622 oremail sokjee@sra.org.sg for more Scholarship Details.The Retailer 3

Association News FeatureSRA NewsTHE GREAT SINGAPORE SALE:20TH ANNIVERSARYThis year marks the 20th Anniversary of the Great SingaporeSale (GSS)!To be held from Friday, 31 May to Sunday, 28 July 2013,GSS has been timed to coincide with the local school holidays andregional peak travel seasons, to enable participants to capitaliseon the domestic and visitor traffi c for incremental sales.Singapore Retailers Association - organiser of GSS, is pleased toannounce our appointment of MasterCard ® as the Offi cial Card forthe 10th year running.Please see Pages 7 to 9 for more details on how you shouldparticipate to join in the celebrations.SRA BALL 2013The SRA Ball 2013 will be held on Thursday, 29 August 2013at the Fairmont Ballroom, Raffl es City Convention Centre.As the industry recognition and networking event of the year, thehighlights of the evening will include:• Announcement of the results and presentation of the SRARetail Awards 2013• Presentation of the SRA Shopping Centre Awards 2013• Presentation of the National Retail Scholarships & theSRA-MasterCard Retail Scholarships 2013Be sure not to miss the SRA Ball 2013. Look out for more details.SRA GOLF 2013SRA RETAIL AWARDS 2013SRA Golf is all set for Wednesday 12 June 2013 at Sentosa GolfClub - Tanjong Course.The Singapore Retailers Association is now inviting applications forthe coveted SRA Retail Awards 2013 – the annual retail awardsthat honour the industry’s crème de la crème.Over 144 golfers from the industry are expected for a day ofgolfi ng and networking from lunch till late evening at this mostfavourite of golf clubs.Supported by SPRING Singapore and the Singapore Tourism Board,a total of six Awards are up for grabs this year:1. Best New Entrant of the Year2. Best Retail Concept of the Year3. Best Retail Event of the Year4. Best Efforts in Corporate Social Responsibility5. Manager of the Year6. Young Executive of the YearQualifying Period: 1 May 2012 to 30 April 2013Closing Date: 31 May 2013All applicants will be judged according to the judging criteria statedin the application forms, and only the best will be presented withthe SRA Retail Awards 2013 at the SRA Ball on 29 August 2013,in honour of the impact they have each made on the retail scenein Singapore.So email info@sra.org.sg to request for the application forms today!Sponsorship opportunities (Hole Sponsorship / Prize Sponsorship)are available - contact us (email: john@sra.org.sg) for more infotoday!SINGAPORE RETAIL INDUSTRY CONFERENCE 2013 -“RETAIL REPERTOIRES”11 - 13 September 2013, Suntec Convention CentreThe 22nd annual SRA Conference is an international retail eventoffering unparalleled levels of information, insight and networkingopportunities! Whatever the size of your business, you will gain aninsight into the retail industry’s future, and fi nd the knowledge youneed, the ideas that you want, and the solutions that you expectfrom industry leaders, discovering the newest concepts, strategiesand advancements in retailing!3 Power Packed half days featuring innovative Case Studies ofLeading International Retailers & Stimulating Sessions by RetailExperts and Specialists, all covering in-depth key aspects relevantto your retail business.Speaking and Sponsorship opportunities are now available, contactjohn@sra.org.sg for more information.The Retailer 5

SRA Institute For RetailingPublic Programmes Scheduled for January – June 2013Course TitleStart date / No oftraining hoursCourse Fee per pax(excl GST)SRAmemberNon-SRAmemberSDF / WSQgrantNet Course Fee afterSDF / WSQ(incl relevant GST)(member /non-member)Closing date forregistration1The Art of Service - 01LW21 Jan / 7 hrs$100.00$120.00$14.00$93.00 / $114.4007 Jan 20132Effective Retail Selling Skills - 01SC23 Jan/ 15 hrs$195.00$215.00$30.00$178.65 / $200.0509 Jan 20133Effective Retail Selling Skills - 02ET18 Feb/ 15 hrs$195.00$215.00$30.00$178.65 / $200.0504 Feb 20134The Art of Service - 02NS20 Feb / 7 hrs$100.00$120.00$14.00$93.00 / $114.4006 Feb 20135Customer Handling Skills - 01NS25 Feb / 27 hrs$350.00$438.00$54.00$320.50 / $414.6613 Feb 20136Fundamentals of Successful VisualMerchandising - 01FS27 Feb / 12 hrs$380.00$420.00$24.00$382.60 / $425.4013 Feb 20137Effective Retail Selling Skills - 03KM07 Mar/ 15 hrs$195.00$215.00$30.00$178.65 / $200.0521 Feb 20138The Art of Service - 03SL08 Mar / 7 hrs$100.00$120.00$14.00$93.00 / $114.4022 Feb 20139Retail Supervisory Management WSQ- 01NS11 Mar/ 75 hrs$900.00$1,035.00$487.20$441.70 / $586.1525 Feb 201310Service English for RetailProfessionals - 01SL25 Mar / 30 hrs$380.00$450.00Nil$406.60 / $481.5011 Mar 201311Fundamentals of Successful VisualMerchandising - 02FS26 Mar / 12 hrs$380.00$420.00$24.00$382.60 / $425.4012 Mar 201312Effective Retail Selling Skills - 04KM04 Apr/ 15 hrs$195.00$215.00$30.00$178.65 / $200.0521 Mar 201313The Art of Service - 04SL10 Apr / 7 hrs$100.00$120.00$14.00$93.00 / $114.4027 Mar 201314Effective Retail Selling Skills - 05SL07 May/15 hrs$195.00$215.00$30.00$178.65 / $200.0523 Apr 201315Retail Supervisory Management WSQ- 02KB13 May / 75 hrs$900.00$1,035.00$487.20$441.70 / $586.1529 Apr 201316The Art of Service - 05SL14 May / 7 hrs$100.00$120.00$14.00$93.00 / $114.4030 Apr 201317Effective Retail Selling Skills - 06KM05 Jun/ 15 hrs$195.00$215.00$30.00$178.65 / $200.0522 May 201318The Art of Service - 06SL05 Jun / 7 hrs$100.00$120.00$14.00$93.00 / $114.4022 May 2013Note: SDF & WSQ funding are only available to Singapore citizens and Singapore Permanent ResidentsSingapore Retailers Association Institute for Retailing (SRAIR) has content development capabilities and expertise to conduct customised orcontextualised training programmes based on your training needs.For more information about the above programmes or in-house training, please contact us at Tel: 6295 2622 or email us at sokjee@sra.org.sg.You can also refer to our website at www.retail.org.sg under Training Programmes.6 The Retailer

31 M AY – 28 JUL 2 013To The Managing Director / A&P Manager,THE GREAT SINGAPORE SALE: 20TH ANNIVERSARYInvitation to Participate (31 May to 28 July 2013)The Great Singapore Sale (GSS) 2013 1 , which will be held from 31 May to 28 July 2013, will mark the 20th Anniversary of GSS.To celebrate this special occasion, Singapore Retailers Association (SRA) - organiser of GSS, is inviting retailers, shopping mallsand lifestyle players islandwide* (including F&B outlets, hotels, spas, attractions, entertainment establishments, etc), toparticipate in new and exciting ways, offer extra value deals and promotions, and create fun experiences and a festive atmosphereto make this the biggest and best sale ever, so as to entice more locals and visitors to spend.* Participation is FREE. Please go to www.greatsingaporesale.com.sg/participate for more details on how you shouldparticipate and make the most of the FREE publicity from SRA.To help drive spending, SRA is pleased to announce our appointment of MasterCard ® as the Offi cial Card of GSS for the10th year running. MasterCard has demonstrated itself as an invaluable partner whose marketing programmes havehelped encourage both domestic and tourist spending during GSS over the past 9 years. For GSS 2012, total spend onMasterCard cards hit a record of US$1.41 billion, a 7% increase over GSS 2011. Notably, the total number of MasterCardtransactions hit the 10 million mark for the fi rst time, rising 17% to 10.7 million during GSS 2012.For GSS 2013, to create buzz and hype for the 20th Anniversary of GSS and to encourage continuous spending islandwide,SRA will be giving away S$20,000 cash in the GSS 20th Anniversary Biggest Spender Reward!In addition, MasterCard will be offering its cardholders exclusive MasterCard rewards, privileges and experiences to helpdrive domestic and tourist spending in Singapore.SRA and MasterCard will also be combining our resources to aggressively promote GSS locally and overseas.We are confi dent that our partnership with MasterCard will bring substantial benefi ts to GSS and its participants - especially thosewho participate with extra value deals, and promote SRA’s and MasterCard’s rewards to drive spending.We look forward to your active participation and support, and a successful GSS 2013 for all.Yours sincerely,Dato’ Dr Jannie ChanPresident, Singapore Retailers Association1The Great Singapore Sale 2013 is organised by the Singapore Retailers Association and supported by the Singapore Tourism Board, Orchard Road BusinessAssociation, MasterCard Worldwide and Singapore Press Holdings.The Retailer 7

31 MAY – 28 JUL2 013THE GREAT SINGAPORE SALE: 20TH ANNIVERSARYInvitation to Participate (31 May to 28 July 2013)This year marks the 20th Anniversary of the Great Singapore Sale(GSS), and the Singapore Retailers Association (SRA) - organiserof GSS 2013, is inviting retailers, shopping malls and lifestyleplayers islandwide* to offer extraordinary value, rewards andexperiences as part of the celebrations, so as to increase theexcitement of Singapore’s biggest annual islandwide Sale, anddrive domestic and visitor spending.* Participation is FREE and open to retail stores, shopping malls,F&B outlets, hotels, spas, attractions, entertainment establishments,etc, islandwide.OFFICIAL SALE PERIODTo enable participants to tap on both the domestic and visitortraffi c for incremental sales, GSS will be held from Friday, 31 Mayto Sunday, 28 July 2013 to coincide with:• Local school holidays• Regional peak travel seasons• Singapore International Jewelry Expo (4 to 7 July)• Singapore Food Festival (July)NEW LOGOIn conjunction with the 20th Anniversary of GSS, SRA has refreshedthe GSS offi cial logo. Please download the new GSS logo fromwww.greatsingaporesale.com.sg/logo, and use it to publicise yourparticipation and create an impactful sale atmosphere.GSS GIVES BACKAs part of the GSS 20th Anniversary celebrations, SRA is planningfor GSS to give S$20,000 worth of shopping vouchers to charityto give the underprivileged a chance to have their shoppingwishes granted!For those interested in sponsoring vouchers, please contactfelicia@sra.org.sg.GSS 20TH ANNIVERSARYBIGGEST SPENDER REWARDTo celebrate the GSS 20th Anniversary and to encouragecontinuous spending, SRA will be giving away S$20,000 cash to thebiggest spender in the GSS 20th Anniversary Biggest SpenderReward! Consumers who charge to MasterCard – the Offi cial Card,will stand to enjoy additional privileges.SRA will be giving participants FREE window decalsto promote the GSS 20th Anniversary Biggest SpenderReward. Please go to www.greatsingaporesale.com.sg/decalsto submit your requests for the window decals, and display themprominently to create excitement and encourage spending at yourmalls / outlets.OTHER SPENDING INCENTIVESSRA’s partners will also be offering other spending incentives:• MasterCard – the Official Card: Exclusive MasterCardprivileges to drive spending at retail and lifestyle establishments,including online stores of brick-and-mortar retailers in Singapore,where MasterCard is accepted.For those interested in collaborating with MasterCard tooffer exclusive privileges / Priceless Singapore experiences toits cardholders for the 20th Anniversary of GSS, please contactenquiry@mcpromotions.com.sg.• Singapore Press Holdings: Shop & Win Draw to drive salesto advertisers; choice of GSS advertising packages available.Interested parties, please contact your SPH sales representative.ISLANDWIDE SALE &TOTAL LIFESTYLE EXPERIENCERetailers / Shopping Malls / Lifestyle Outlets: To exciteconsumers and encourage them to spend at your malls / outlets,incorporate the GSS 20th Anniversary theme into your sales /promotions / events, participate in new and exciting ways, offerhuge discounts, extra value deals, special privileges, value-addedpromotions, enticing rewards, exciting events, fun experiences anda festive atmosphere to make this the biggest and best sale ever!Examples:• Huge discounts (eg. 80% discount ie. pay only 20%)• Extra value deals (eg. GSS 20th Anniversary Extra Value Dealsat $2 / $20 / $200, etc)• Enticing rewards / value-added promotions (eg. GSS 20thAnniversary Gifts-With-Purchase, Purchase-With-Purchase,Instant Dips, Lucky Draws with minimum spend of $20 /$200, etc)• Exciting events / fun experiences (eg. fl ash mobs, celebrityappearances, entertainment, workshops, competitions,shopathons, late night shopping and dining, etc)• Value-added services / special privileges (eg. personalshopper services, concierge services, free parking, free delivery,MasterCard privileges, tourist privileges, etc)8 The Retailer

31 MAY – 28 JUL2 013ADVERTISING, MARKETING &MEDIA CAMPAIGNSRA, together with our partners, will be aggressively promotingGSS both locally and overseas using a comprehensive range ofadvertising, marketing and media platforms including:• GSS 2013 Official Website: www.greatsingaporesale.com.sg• GSS 2013 Official Facebook Page:www.facebook.com/Offi cialGreatSingaporeSale• GSS 2013 Twitter Campaign: #GreatSingaporeSale• GSS 20th Anniversary Biggest Spender Reward:Point-of-sale materials• Street Banners• Advertisements• Media Campaign• GSS Supplements in SPH Newspapers• Overseas Marketing• Multi-Market Communications Campaign to MasterCard’scardholder base of more than 260 million cards in Asia/Pacifi c,Middle East and AfricaWHY YOU SHOULD PARTICIPATEOver the years, GSS has grown from Orchard Road and MarinaBay to the suburbs, and continues to enjoy strong support fromboth locals and visitors. Retail sales hit S$6 billion in June & July2012. More than 80% of respondents to SRA’s past surveys saidthat participating in GSS gave them higher sales than if they hadnot participated.So join us in celebrating the GSS 20th Anniversary, give yourcustomers great reasons to spend with you, and make Singaporethe place to be this GSS!HOW YOU SHOULD PARTICIPATE1. Retailers / Shopping Malls / Lifestyle Outlets Islandwide:• Incorporate the GSS 20th Anniversary theme into your sales /promotions / events.• Participate in new and exciting ways.• Offer huge discounts, extra value deals, special privileges,value-added promotions, enticing rewards, exciting events, funexperiences and a festive atmosphere to drive spending.• Introduce different offers / merchandise regularly to keepconsumers coming back.• Your sale can be of any duration within the offi cial GSS period,but you are advised to maximise the sales potential of the entire8-week period.2. Use SRA’s GSS 20th Anniversary Biggest Spender Reward/ MasterCard privileges / SPH promotion to supplement yourown spending promotions.3. Prominently display the FREE window decals** from SRA andpromote the GSS 20th Anniversary Biggest Spender Rewardin other ways, to create excitement and encourage spendingat your malls / outlets.All requests for the FREE window decals to be submittedvia www.greatsingaporesale.com.sg/decals by 1 April.** The FREE window decals will be given at SRA’s discretion.4. Submit your confi rmed offers / promotions / events for thechance to enjoy FREE publicity*** from SRA in the GSS 2013Offi cial Website (1 million pageviews expected) / GSS 2013Facebook Page / GSS 2013 Twitter Campaign.All confirmed participation details to be submitted viawww.greatsingaporesale.com.sg/forms by 1 April for theFREE publicity.*** The FREE publicity will be given at SRA’s discretion, andSRA reserves the right to edit as deemed fi t.5. Use the e-coupons / banner ads to increase your presence inthe GSS 2013 Offi cial Website, and to advertise your specialoffers / promotions / events in greater detail. Please downloadthe media kit from www.greatsingaporesale.com.sg/ads.All coupon / ad bookings to be submitted viawww.greatsingaporesale.com.sg/ads at least 5 weeksprior to upload date.6. Supplement the above with your own A&P campaign to increasethe awareness of your offers / promotions / events, as well asthe GSS 20th Anniversary Biggest Spender Reward.7. Use the new GSS 2013 Offi cial Logo in your own pressads, in-store / in-mall collaterals to publicise yourparticipation in GSS, create an impactful sale atmosphere,and remind your customers to charge to MasterCard tobe eligible for the MasterCard rewards and privileges.The logo and usage guidelines are downloadable FREEfrom www.greatsingaporesale.com.sg/logo.We look forward to your active participation and support, and asuccessful GSS 2013 for all.Organiser: Offi cial Card: Supported by:The Retailer 9

Asian Retail News FeatureRegional Round UpWhat’s Happening Around the Region..CARREFOUR Q4 REMAINS WEAK IN ASIAASIAVolumes were boosted by demand for bulk chardonnay, which reported a37% surge to 117 million litres. Exports to the UK and the US, the two largestmarkets for Australian wine, were up 3% and 9% year-on-year, respectively.China was the strongest market for premium wines (above A$7.50), whichhelped overall exports to the Asian nation rise by 7%.Carrefour results remained weak in Asia, where sales declined by 0.5% andLFL sales were down 3.9%. Carrefour attributed this to the appreciation oflocal currencies against the euro, noting that reported sales were up 5.6%.But a modest overall rise in group sales for its fourth quarter, helped by somesigns of improvement in the French market, where it has been strugglingfor some time. However, the world’s second-largest retailer admitted thatit continued to face tough trading conditions in markets such as Spain andItaly.For the quarter, group sales edged up 0.8% to 22.9bn, rising by 2.1% whenexcluding currency fl uctuations, even as like-for-like sales were up 0.4%(excl. fuel).In France, sales were up 0.8% when excluding fuel and currency shifts,an improvement from the 1.5% decline in the third quarter. LFL sales at itshypermarkets were down 2%, and its supermarkets and convenience storesshowed better growth.In the Rest of Europe, sales were down 3.4% on the above basis, even asLFL sales fell by 3.9%. The group said it was particularly hurt by weakness inausterity-hit Southern Europe and in Poland.Once again, the strongest growth came from its Latin American operations,where sales jumped up 15.1% at constant exchange rates, with continuedstrong growth in Brazil.AUSTRALIACOLES CONTINUES TO SLASH PRICES DESPITE CRITICISMColes is continuing with its strategy to lower prices of its own label products,as part of its ongoing ‘Down Down’ campaign, even though it has attractedfurther criticism from dairy farmers.The chain has initiated price cuts on more than 100 additional products,starting this week, saying they will remain in place for six months. The cutswill see it lower the price of bread by an average 8%, juice by 13%, and meatpies by 27%, amongst others.John Durkan, Merchandise Director at the chain, said the Australian markethad become more competitive since 2009, adding: “I can only see pricesgoing in one direction, and that’s down”.The group has also lowered the price of milk at its Coles Express conveniencestores to A$1, bringing them in line with its standard supermarkets. Colessaid the move was necessitated as customers questioned why they hadto pay higher prices at the c-store banner. The move has prompted theQueensland Dairy Farmers Organisation to call for a boycott of supermarketlabelmilk, saying Coles’ latest move was a shallow marketing tactic thatrisked more farming job losses.WINE EXPORT VOLUMES SURGE, BUT PRICES DECLINEThe volume of Australian wine exported to other countries grew during2012, but the value of the same was down, the sixth straight year it hasdeclined. Australia is the world’s fourth-largest exporter of wine, and sawvolumes grow by 3% to 721 million litres. However, sales were down 2% toA$1.85bn, despite the average value per litre growing modestly.Trade body Wine Australia attributed the decline in value to the fact thatbulk wine exports overtook those of bottled wine. It also noted that volumeswere affected by the strong Australian dollar, which made local wines moreexpensive when exported.WOOLWORTHS ENDS TALKS WITH REGULATOR ONACQUISITION PROTOCOLSWoolworths Ltd has abandoned all talks with the Australian Competitionand Consumer Commission, over plans to create a streamlined assessmentprotocol for acquisitions of supermarkets. The development comes even asrival Coles has agreed to a six month trial of the protocols, which excludeacquisitions by Coles or Bunnings in liquor or hardware.Woolworths said it will continue to notify the ACCC of certain types oftransactions as in the past, mostly concerning acquisitions of existingstores but with expanded up front information, at Woolworths’ discretion.In contrast, Coles will now notify the ACCC of all acquisitions in exchangefor quicker pre-assessments and shorter timelines for the fi rst stage of amerger review.The Chairman of the ACCC, Rod Sims, noted that while the proposedprotocol was a voluntary arrangement, he was “particularly disappointedthat Woolworths was not willing to reach an agreement with the ACCC insupermarkets, liquor or hardware”. Sims also said the regulator will “continueto pay close attention to all acquisitions in the supermarket, liquor, hardwareand fuel sectors by the major supermarket chains, including new greenfi eldstore developments. The ACCC will do this not only through notifi cation bythe major supermarket chains and the ACCC’s own monitoring activities but,importantly, through information received from the market.”Woolworths is believed to have objected to the exclusion of Aldi and Costcofrom the protocol, and is said to be ready to discuss “the dynamics of theAustralian retail market as it continues to evolve” with the ACCC.WESFARMERS APPOINTS NEW FINANCE CHIEF AT COLESWesfarmers has announced the appointment of Rob Scott as the newFinance Director at its Coles Group. Scott, currently MD of the conglomerate’sinsurance division, will replace Tony Buffi n, who is leaving to join TravisPerkins, the British building supplies and DIY chain.Scott fi rst joined Wesfarmers in 1993, and has experience in investmentbanking and fi nancial services with Deutsche Bank in Australia and Asia. Herejoined Wesfarmers in 2004 and was appointed to his current post in 2007.He will take up his new role in February.CHINAMETRO REPORTEDLY CONSIDERING SHUTTING DOWN LOCALMEDIA-SATURN UNITThe Metro Group is reportedly considering shutting down its Media-Saturnoutlets in China, just over two years after entering the market. The groupcurrently operates just seven outlets under the banner, and has found itdiffi cult to penetrate the market.10 The Retailer

Asian Retail News FeatureRegional Round UpWhat’s Happening Around the Region..According to a Reuters report, citing unnamed sources, Metro’s board iskeen to withdraw from China although no formal decision has yet been taken.Metro operates the outlets through a joint venture with Foxconn Technology.Metro had initially said it saw potential for opening around 100 such outletsby 2015, but late in 2012, CEO Olaf Koch noted that the market was provingtougher than expected. The seven stores are expected to now report a lossof more than €40m for 2012.The report came even as Erich Kellerhals, founder of the Media Market chainand owner of a 21% stake in Media-Saturn, once again attacked the MetroGroup. In an interview with Focus magazine, Kellerhals claimed that underKoch, Metro has no strategy for the future, and should not rely solely oncutting costs. He further mocked Koch by saying that the Metro CEO “mayhave some knowledge of fi nances, but knows nothing about trade”PEPSI WINS BURGER KING ACCOUNT FROM COKEPepsiCo has announced that it has struck a deal with Burger King in China,which will see the fast-food chain now only offer its soft drink products. Untilnow, the chain had a deal with Coca-Cola in the country.Burger King operates less than 100 outlets in China, but has said it aims torapidly expand in the market, offering considerable scope to Pepsi for highersales. The chain will be supplied by Pepsi Beverage Business, a franchisebottler for the soft drinks giant. The deal includes brands such as Pepsi, 7UP,Miranda, Tropicana, and Lipton.PepsiCo noted: “There’s huge potential to be tapped in China’s food andbeverage market. We are excited that PepsiCo and Burger King Corp arenow joining hands and drawing on each other’s strengths in pursuit of winwincooperation”.METRO CONFIRMS MEDIA-SATURN CHINA EXITGermany’s Metro Group has reported a modest rise in sales for 2012,despite expectations of a poor fourth quarter and tough market conditions.The retail giant also confi rmed that it will shutting down its Media-Saturnelectronic chains in China.For the year, overall sales were up 1.2% to €66.7bn (+0.8% in constantcurrencyterms), but adjusting for the disposals of Makro UK and SaturnFrance, sales rose by a stronger 2.3%. Sales at its Cash & Carry unit grew by1.6% to €31.6bn, but rose by 3.2% organically. The Real hypermarket chainsaw sales edge down 0.1% to €11bn, but they were up slightly by 0.1%when adjusting for currency shifts. The Media-Saturn chain reported a 1.8%rise to €21bn, and they were up 2.9% on an organic basis. However, theGaleria Kaufhof department store continued to struggle, reporting a 0.9%decline to €3.1bn.Metro said its Cash & Carry unit were boosted by growth in Eastern Europeand Asia, which helped offset declines in Germany and the rest of WesternEurope. The Media-Saturn chain also recorded strong growth in EasternEurope, but also performed well in Germany, although conditions remainedweak in Western Europe. In contrast, the Real chain reported growth athome, but its Eastern European units continued to struggle.CEO Olaf Koch noted: “Our goal is to continuously become more attractivefor our customers and therefore increase our competitiveness. Here, wealready made signifi cant progress in 2012, in particular also owing to theextraordinary commitment of our employees in this challenging year”. Hetermed the overall results “satisfactory” given the tough conditions Metrofaced during the year, and claimed the group had “succeeded in gainingshares in many markets”.However, the group confi rmed that it will discontinue the Media-Saturnoperations in China, saying the decision was “prompted by the experiencesand forecasts deriving from the two-year test phase that expired at the endof December”. The group said it had carefully analysed all alternatives, andthe exit was part of its decision to “concentrate on those business unitsand markets where we can clearly sharpen our profi le and build up a strongmarket position”.FUTURE GROUP TO EXPAND C-STORE FORMATS THROUGHFRANCHISE ROUTEThe Future Group has revealed plans to expand its convenience storeformats through the franchise route, potentially paving the way for a rapidexplosion of new outlets under the banners. The group said it will inviteentrepreneurs to open outlets under the ‘KB’s Fair Price’ banner in urbanareas and ‘Aadhar’ in rural areas.KB’s Fair Price operates 85 outlets currently, and the group said it aims togrow to almost 500 outlets under the new strategy. The group added thatthe Aadhar format, which it acquired from Godrej, has a potential of up to100 new franchise outlets. The Future Group has conducted a pilot for suchstores, which has seen it train franchises “on how to run self-service storesand the ways of doing traditional trade”.The Future Group said it will use the expansion of the c-store banners topromote its private labels in the food, home and personal care segments.It noted: “We expect nearly 30% of sales to come from the private labels atour convenience stores”.ITC REPORT POSITIVE PERFORMANCEINDIAITC, the Indian FMCG-to-hotels conglomerate, has seen its third-quarter netprofi t beat expectations with a 21% jump to Rs205bn. For the three monthsto end-December, revenue from its cigarette unit rose by 13% to Rs36.5bn,while its FMCG unit registered a 29% jump to Rs.17.6bn.IKEA PROPOSAL HEADS TO CABINET FOR FINAL APPROVALIndian authorities have cleared the penultimate hurdle for Ikea’s proposalto enter the market, marking the fi rst major approval for a foreign retailer toset up operations in the country. The Foreign Investment Promotion Boardhas approved Ikea’s plans, following clearances from the Commerce Ministryand other bodies. The plans now require only the approval of the IndianCabinet, which is seen as a formality.The Swedish chain has said it plans to invest 1.5bn to open 25 local outlets,a signifi cant sum for a government that is looking to lure new investment tobolster a stumbling economy. The move is also expected to boost investorconfi dence and possibly infl uence more global players to put forward formalproposals to enter the market.Ikea noted: “We consider this as a very positive development. We are nowwaiting for approval from the Cabinet and subsequently a notifi cation so thatwe can initiate the process of establishing Ikea stores in the country.” AnandSharma, the Commerce Minister, noted: “The government is committed toplay a constructive role in encouraging foreign direct investment, especiallyin areas which create jobs and provide technological advancement”.There are few major furniture and home furnishings chains in India, givingIkea great scope for growth. The group will be forced to comply withconditions however, including sourcing a chunk of products from India, aswell as building back-end facilities.The Retailer 11

Asian Retail News FeatureRegional Round UpWhat’s Happening Around the Region..RELIANCE RETAIL TO CONSOLIDATE OPSReliance Retail, India’s second-largest retailer, has announced launchedplans for a major restructuring of its businesses.The group has fi led a petition in the Bombay High Court, asking for approvalto bring the operations of eight formats under its Reliance Fresh banner.According to local reports, the move will see Reliance bring the Fresh,Autozone, Trends, Footprint, Digital, Leisure, Gems & Jewels, and ReplayGaming units under a centralised system.The move reportedly aims to increase synergies and effi ciencies amongstthe various businesses. The restructuring will make Reliance Fresh a singleretail entity under holding company Reliance Retail. It would also mark thethird major restructuring by the company, since setting up shop in 2006.JAPANAEON AND SEVEN & I HOLDINGS REPORT DIFFERING RESULTSJJapanese retail giant Aeon saw its operating profi t for the March-November period decline by 5.5% to 96.2bn yen (€815m), hurt by softconsumer demand and increased competition at its general merchandiseand grocery stores. Net profi t, however, grew by 2.9% to 37.6bn yen, whilerevenues were up 9.9% to 3.75trn yen (€3.2bn).Earlier, Aeon’s main rival Seven & I Holdings reported that its operatingprofi t for the September-November quarter rose by 4.8% to 69.2bnyen (€586m), the fi rst such rise in nine quarters. Results were helped bya cost-cutting plan and a change in products being offered. The grouprecorded growth at its 7-11 convenience store chain as well as its Ito-Yokadoand York-Benimaru banners.the market, but said its exit was part of its strategy of “allocating its resourcesto mature countries where it occupies strong and established positions andemerging markets where it has strong growth potential”.The exit was part of a global strategy with the sale of its Colombian assets,and the sale of its operations in Singapore as well. The deal also marksanother major deal for Aeon, which continues to expand in Asia.The Japanese giant said it will make Malaysia the group’s Southeast Asianheadquarters, adding that it will aim to grow to 100 outlets locally by 2020.Aeon also said it is ready for more acquisitions in Southeast Asia, saying theregion was “one of the very few areas where we can expect to see greaterdevelopment as far as potential economic growth is concerned”.The Japanese giant said it will make Malaysia the group’s Southeast Asianheadquarters, adding that it will aim to grow to 100 outlets locally by 2020.Aeon also said it is ready for more acquisitions in Southeast Asia, saying theregion was “one of the very few areas where we can expect to see greaterdevelopment as far as potential economic growth is concerned”.TESCO APPOINTS LIDL EXEC AS NEW COUNTRY HEADTesco has announced the appointment of George Fischer as the new CEOof its Malaysian unit, poaching him from Lidl Belgium, where he was theChairman of the management board. Tesco said it will benefi t from Fischer’sinternational experience in the retail industry and the leadership experiencein areas of retail, FMCG, real estate, consumer goods, international businessand logistics.Tesco currently operates 47 outlets in Malaysia, employing around 11,000staff.THAILANDMALAYSIACARREFOUR EXITS AFTER SELLINGS OPS TO AEONCarrefour confi rmed its exit from yet another retail market, as it pursues amore focused drive under new CEO Georges Plassat. The world’s secondlargestretailer said it has agreed to sell its operations in Malaysia to Aeon, ina deal worth €250m.Carrefour operates 26 stores in the country, which generated sales of €400mfor the year ending 30 June 2012. The group is the fourth-largest retailer inthe market, but said its exit was part of its strategy of “allocating its resourcesto mature countries where it occupies strong and established positions andemerging markets where it has strong growth potential”.CARREFOUR EXITS YET ANOTHER MARKET; SELLS OPS TO AEONCarrefour has confi rmed its exit from yet another retail market, as it pursuesa more focused drive under new CEO Georges Plassat. The world’s secondlargestretailer said it has agreed to sell its operations in Malaysia to Aeon, ina deal worth €250m.Carrefour operates 26 stores in the country, which generated sales of €400mfor the year ending 30 June 2012. The group is the fourth-largest retailer inTHAI MARKET HELPS BOOST CASINO SALES IN Q4A strong performance by its operations in emerging markets helped GroupeCasino offset another poor performance in its home market, and helpedpush up overall revenue. The group however stood by its earlier forecast ofexpecting full-year operating profi t to grow above last year’s level.The retail giant saw sales in the last quarter jump up 35.2% to 12.9bn, butthey were up just 3.2% on an organic basis, and the LFL growth of 3.2% wasa slowdown from the 4.2% growth in the third quarter.Sales in France fell by 3.1% to 4.76bn (-2.2% organically), hurt in particularby a 11.7% drop at its Geant Casino hypermarkets. The supermarketsand c-stores recorded more modest declines, while the discount banners(Franprix & Monoprix) and online operations (Cdiscount) recorded growth.Casino attributed the fi gures to its decision to fund permanent price cutson basic products by reducing promotions, attracting fewer shoppers. Itadded: “The economic environment was again quite soft with no real pickupin holiday sales except for online sales”.International sales soared up 75.9% to 8.1bn, growing by 8.5% on anorganic basis. Casino reported strong growth both in Asia (+15.9% organic)and Latin America (+7.8% organic), with like-for-like sales up in mid- to highsingledigits. The group said the operating margin of the French businessshould decline “moderately”, but added that it was “confi dent” that full-yearprofi t would be register a nearly 25% rise to more than 1.94bn.12 The Retailer

The Retailer 13

Retail Industry Mystery Shopping (RIMS) Programme – PREMIUM Service GEMSof the Luxury Watches & Jewellery/ Premium Gifts SectorThis feature of Retail Industry Mystery Shopping (RIMS) Programme sharesthe experience of two PREMIUM Service GEMS from the Luxury Watches& Jewellery/ Premium Gifts* sector – Bell & Ross and Cortina Watch. Here,you will fi nd the various service approaches adopted by the two luxurywatches retailers in their on-going quests to provide excellent service to theircustomers.BELL & ROSSBell & Ross has participated in the RIMS from November 2010 and hasachieved the status of PREMIUM Service GEMS three times since. Bell &Ross is the top performer in the May to July 2012 RIMS mystery audits witha 92.6% score across all 8 key service attributes of Approach, Appearance,Ambience, Assistance, Attitude, Acquisition, Aftersales and Advocacy.imperative that we continually strive to improve and differentiate our boutiquethrough excellent service and attention to details. We will continue to look forways to improve our customer service experience at our boutique.”CORTINA WATCHCortina Watch, on the other hand, has participated in the Retail IndustryMystery Shopping programme since May 2010 when it achieved PREMIUMService GEM status on its very fi rst audit. It has continued to performwith commendable service standards in the Luxury Watches & Jewellery/Premium Gifts sector in the subsequent audits. Achieving yet again thePREMIUM Service GEM in the November 2011 – January 2012 audit periodis indeed an affi rmation of their longstanding dedication to service excellence.OVERCOMING KEY CHALLENGES INTHE LUXURY WATCHES & JEWELLERY/PREMIUM GIFTS SECTORMr Benjamin Lim, Operations Manager, Luxury Timepiece, FJ Benjamin(Singapore) Pte Ltd, shares that the key challenge Bell & Ross faces in salesand service delivery is maintaining consistency in their service approachtowards customers across the sales team. Very often, many sales staffwould tend to pre-judge walk-in customers, and provide better service tothose perceived as potential customers. At Bell & Ross, all staff has beentrained to treat anyone who walks into the store as a potential customerregardless of appearance.The team is continuously reminded that excellent service is the keydifferentiating factor for Bell & Ross. Bell & Ross recognises their staff’scontribution and the value they bring to the boutique, thereby giving them asense of pride, motivating them to maintain high service standards over time.REFLECTING AND IMPROVING ON RIMSRESULTS FROM LESSONS LEARNTAfter each RIMS audit, Bell & Ross will scrutinise the comprehensive reportthat is provided to them, identifying shortcomings and areas requiringimprovement. The team will then look for ways to correct any mistakesrecorded and make improvements.In one of the audits when Bell & Ross did not achieve PREMIUM ServiceGEM status due to a low score in Approach, the team made the necessaryimprovements. The team proactively engaged customers who visit thestore and offered in-depth and professional product information afterunderstanding their needs. This has translated to closer relationships withtheir customers and improved sales. The management makes it a point notto simply focus on the weaknesses, but to also commend the team on areasthat they performed well in and this has spurred them on to fi nd ways toachieve even better results.Bell & Ross feels that today’s customers expect more than a greeting anda smile. Little gestures like offering a cup of coffee or tea go a long wayto putting the customer at ease and help to encourage them to discusstheir needs more comfortably. The team continues to conduct themselveswith the highest level of professionalism while making the customers feelcomfortable in the boutique.As Mr Benjamin Lim puts it, “We are very delighted and honoured to receivethe Premium GEMS award as this serves as a testament to the good work andefforts put in by the retail team. In today’s competitive retail environment, it’sMANAGING QUALITY SERVICE STANDARDSWITH MANPOWER CHALLENGESIn recent years, Cortina Watch expanded its business and increased marketpenetration by growing their number of boutiques. This has given rise tomanpower shortage, directly impacting the quality of service provided by itsstaff. The need to recruit new staff and constantly train and motivate them tocultivate the Cortina Watch culture, ensuring that the RIMS service attributesare continuously adhered to and executed satisfactorily across all boutiquesis a major challenge for Cortina Watch.TRAINING AND MOTIVATING STAFF WITHTHE RIMS RESULTSBut their efforts have paid off. There have been notable improvements inthe service culture of Cortina Watch since they fi rst embarked on the RIMSjourney in May 2010. The management believes in 2-way communicationand always shares the RIMS results with all boutique staff, refl ecting on pastversus the current results. There is constant fi ne-tuning of the service deliveryand sharing of experiences among boutique staff, focusing on improving theweak areas.Training on the RIMS service attributes is also compulsory for all newboutique staff. Posters of these attributes are put up at the retail offi ces,and boutique managers constantly remind staff of these attributes atmorning briefi ngs. To encourage the practice of the RIMS service attributes,Management would sometimes provide attractive perks for boutique staffto continuously maintain high service levels. The organisation’s approachto encourage active participation is to profi le RIMS as more fun than chore.As Ms Jacqueline Lim, HR & Admin Manager, Cortina Watch Pte Ltd shares,“At Cortina Watch, we work and grow our service skills together as a team.We constantly review and improve our performance with Management’sfull support on our Retail Industry Mystery Shopping initiative to provideexemplary service to customers. Going forward, we are confi dent that wewill achieve the status of PREMIUM Service GEMS many more times in theRetail Industry Mystery Shopping programme.”* The Retail Industry Mystery Shopping Programme conducts mystery auditsat participating retail outlets twice a year, once in May – July and anotherin November – January of the following year. Retailers participate in theirrespective sectors such as Luxury Watches & Jewellery/ Premium Gifts,Department Store, Cosmetics, Fashion and Accessories etc. The PREMIUMService GEM status is awarded to the top performer of each sector, with atleast a 70% overall score in the company index.14 The Retailer

THIRD ANNUALAn i2i eventofficial partner19-21 MARCH MARINA BAY SANDS SINGAPOREGlobal retail intelligence, Asia market focusOver 85 retail leaders to share their insights, including:QUOTEDISCOUNTCODER370-SRA-DIS25 RATO CLAIMYOUR 25%DISCOUNTPHILIPCLARKEChief ExecutiveKENTWONGManaging Director,Chow Tai FookTORUSHIMADASenior ExecutiveOfficer andDirector, RakutenSCOTTPRICEChiefExecutiveMIMITANGChiefExecutive,GucciANDREWWUGroup PresidentGreater ChinaJIMMCCALLUMCALLUMChief Executive, RobinsonsGroup of Companies(Singapore and Malaysia)and Head of Asia, Al Futtaim GroupRICHARDPERRYGroup BusinessProcess DirectorFounding PartnerCo-sponsorKey PartnersPartnerwww.worldretailcongressasia.com | +44 (0)845 056 5069 | info@worldretailcongress.comThe Retailer 15

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