Sales at depart­ment stores set to hit new records, says MOEA

The China Post - - LOCAL - BY JOHN LIU

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

Mar­ket

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.

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