Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Nov 16): Parkson Holdings Bhd, which reported a 69% year-on-year net profit decline for the financial year ended June 30, 2015 (FY15) due to lower sales performance in its Malaysia, China, Vietnam and Myanmar operations, expects consumer sentiment to stay weak, but is banking on its on-going rebranding campaign to revive its retailing business across the region.

For Malaysia, Parkson Retail Asia Ltd (Parkson Asia) non-executive director Datuk Magic Lee sees the depreciating ringgit and the implementation of the goods and services tax in April as dragging consumer sentiments down.

"Yet, we have to stay active to do more things and get ready when the market recovers," he told a media briefing on its business strategy, future direction and brands in the fashion, cosmetics and beauty, food and beverage, corporate gifts and edutainment sectors today.

Lee said the group has ploughed RM100 million into its rebranding campaign, over the last one and a half years.

The group now has 35 brands, and is looking to grow the number to more than 100, he added.

Lee declined to disclose the group's investment going forward, saying much depends on the response to its rebranding campaign.

"We hope that with this (rebranding campaign), we will see the group's sales grow by at least 50%, compared with what we have achieved in FY15," he said.

Parkson Holdings saw its revenue for FY15 grow 5.2% to RM3.74 billion, from RM3.55 billion in FY14.

Lee also said the group is targeting its new high street brands from South Korea — SPAO, MIXXO and WHO.A.U — to achieve a first-year sales of RM60 million.

The three new brands are debuting in Malaysia, as part of Parkson Group's branding initiatives.

Lee noted the group will continue its aggressive expansion in Southeast Asia, namely Malaysia, Indonesia, Cambodia and Myanmar, with an aim to open about 10 new stores in 2016.

The group plans to open up to four outlets in Malaysia, between three and five outlets in Indonesia, two in Myanmar and one in Cambodia.

Parkson Holdings' executive director Vivien Cheng Hui Yen said moving forward, the group plans to manage its own distribution channel to ensure consistent customer experience delivery in all of Parkson brands operated in shopping malls and stand-alone stores.

Vivien, 26, daughter of tycoon Tan Sri William Cheng who is Parkson Holdings' chairman and managing director, was promoted as executive director of Parkson Asia in September.

"Aligned with our vision and mission, we continuously look for ways to delight our customers. We wish to bring an integrated, unified and ultimate shopping experience to our customers and we are committed to deliver service excellence," said Vivien.

"In order to stay ahead of the current competitive market in the retail industry, we believe it is necessary to innovate the business," she added.

As at 2pm today, Parkson Holdings shares were down 0.93% at RM1.06, with 341,500 shares traded. Its market capitalisation stood at RM1.16 billion.

Year-to-date, the stock has fallen more than 52%, from RM2.20 at the beginning of this year.

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

      Print
      Text Size
      Share