Asian retailers upbeat about future prospects

Asian retailers upbeat about future prospects

Deutsche Press-Agentur, Singapore

Asian retailers are upbeat about business prospects and
confidence is improving, an annual survey showed on Tuesday.

Retailers in the region did generally well over the past six
months as strengthening domestic economies fueled growth in local
consumption, according to the Jones Lang LaSalle (JLL) survey.

Visitor arrivals and increased spending also boosted consumer
confidence.

Kuala Lumpur, Jakarta and Bangkok remained firm favorites for
new stores among cities in Southeast Asia. Other favored
locations were Taiwan, Shanghai, Beijing and Hong Kong.

All respondents disclosed plans to expand their operations
within the next two to five years.

Forty-three per cent of the retailers in Singapore saw an
improved turnover over the past six months, while gross turnover
worsened for 36 percent.

"Looking forward, retailers are reviewing their expansion
plans cautiously with the concern of increasing occupancy costs a
major factor," The Business Times quoted Pauline Tan, JLL
associate director, as saying.

"With that in mind, retailers favor expansion plans outside
Singapore when profit margins can improve as there is a bigger
slice of the pie available," she noted.

Retailers were less positive about their outlook for profit
margins than for gross turnover.

While most respondents expect a sustained and stable
performance in the year ahead, 14 percent expect a downturn in
their profit margins. Only 29 percent forecast an improvement.