Sales at department stores set to hit new records, says MOEA
As department stores make adjustment to floor layout and introduce new restaurant brands, their sales are likely to reach NT$320 billion this year, which is a new record, according to the Ministry of Economic Affairs (MOEA).
In 2014, the six largest department stores, including Shin Kong Mitsukoshi ( ), Far Eastern Department Stores (
), and Pacific SOGO Department Stores ( ) operated in 80 locations in Taiwan.
There were 30 stores in Taipei City, making up 37.5 percent of all stores, the highest proportion in the nation. Other cities with higher store number, in order, are Kaohsiung City (11.3 percent), Taoyuan City (10 percent), Tainan City and Taichung City (both 8.8 percent).
The MOEA pointed out that New Taipei City, despite a high population of 3.96 million, only has six department stores, making up 7.5 percent of the total.
MOEA officials attributed the phenomenon to Taipei City’s convenient transportation and its higher department store density, which has effectively attracted New Taipei City’s residents over to shop, and consequently resulting in fewer store establishments in New Taipei.
As department stores made interior renovation and introduced restaurant brands to attract visitor traffic, sales topped the NT$300 billion mark last Sales for the whole year tered at NT$306.1 billion.
The MOEA projected sales to climb further this year, to NT$320 billion, as private consumption and tourist number grew. In fact, department stores’ revenues already rose 6 percent in the first two months year-on-year. year. regis-
A Different Trend in American
The growing trend in Taiwan varies from that in the U.S. In Taiwan, department store revenues in 2014 more than doubled compared with those in 2000.
In the U. S. market, store sales peaked in 2000 to reach US$232.5 billion. But the rise of electronic commerce, mobile shopping and the popularity outlet stores have had a substantial impact on consumer behavior in the States. Sales plummeted to US$167.8 billion in 2014, down 27.8 percent from 2000.
Nevertheless, American consumers still spend more than Taiwan’s shoppers. American shoppers spent an average US$524 ( NT$16,000) per person in in 2014. Locals spent on average NT$13,000 per person.
In observance of the development of e-commerce, some local department stores have set up virtual stores online. For others, the pace of their online venture is not as quick for they are preoccupied with the vast number of physical stores they have to manage, according to the MOEA.