Parkson Retail grows regardless of Vietnam drag
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Listed division retailer operator Parkson Retail Asia has reported a 5.5 per cent year-on-year improve in internet revenue for the third quarter.
Within the three months to March 31, Parkson posted a revenue of S$7.98 million.
The corporate attributed the development to elevated gross sales in its Malaysia department shops the place shoppers have been shopping for items prematurely of the introduction of GST on April 1.
The development got here regardless of a discount in similar retailer gross sales from the corporate’s Vietnam operations, which proceed to wrestle and now faces elevated competitors from the arrival of M&S and the Thailand Central Group’s Robins department shops in the important thing Ho Chi Minh Metropolis and Hanoi markets.
Gross sales within the Indonesia and Myanmar shops each improved.
Complete gross sales income for the group rose 9.2 per cent to S$116.58 million.
CEO Toh Peng Koon stated the corporate expects a decline in Malaysia gross sales following the GST implementation, however expects that can be buffered by the beginning of the pre-Hari Raya festive shopping for season in the direction of the top of June.
He stated he expects Indonesia and Myanmar to conitnue to ship encouraging outcomes, however warned Vietnam remained a difficult market.
Questions & Answers
Q.What specifically drove Parkson Retail Asia's improved net profit in the third quarter?
What specifically drove Parkson Retail Asia's improved net profit in the third quarter?
The company attributed the improved net profit to increased sales in its Malaysia department stores. Consumers were purchasing items in advance of the introduction of GST on April 1, contributing to the growth.
Q.What challenges does Parkson face in the Vietnamese market?
What challenges does Parkson face in the Vietnamese market?
Parkson's Vietnam operations continue to struggle with reduced same-store sales. They also face increased competition from new entrants like M&S and Thailand Central Group's Robins department stores in key cities.
Q.How does Parkson plan to mitigate the expected decline in Malaysian sales after GST implementation?
How does Parkson plan to mitigate the expected decline in Malaysian sales after GST implementation?
CEO Toh Peng Koon expects the decline in Malaysian sales following GST implementation to be buffered. He anticipates the start of the pre-Hari Raya festive shopping season towards the end of June will help offset this.
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