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.