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SINGAPORE: The retail sector may have gone through a difficult time due to the COVID-19 pandemic, however, the SKECHERs shoe logo still sees a wallet of opportunity and has intensified its presence in Singapore in recent months.
It opened five new retail outlets in July and August, expanding its advertising footprint here to 30 physical retail outlets, and expanded two existing retail outlets, and also hired 40 new employees.
These measures are from an industry badly affected by the coronavirus epidemic.
Retail sales fell to historic lows in April and May when a “breaker” was imposed, before resuming minor declines in June and July, as retail activity was able to resume. The vacuum rate for the island’s retail area rose to 9. 6% at the end of the quarter of the time, up from 8% in the first quarter.
“There is no doubt (that) in the retail sector, it is quite difficult,” Skechers Vice President for Southeast Asia Zann Lee told C. C.
“But I tell my team that we see demanding situations as opportunities. “
One such opportunity is the availability of “good locations” in shopping malls.
“A lot of brands are emerging, so there are smart places available now compared to before,” he told NAC in an interview Thursday, September 10.
“At this point, the landlords are also re-evaluating the rent, which is where we should continue negotiations. “
As mall owners become more open to negotiations, rental rates at the company’s new outlets have fallen by 20% to 30% the days before the pandemic, according to Lee. This decline reflects trends in other markets, he added, with store rentals. 40% less in China and more than 30% in Thailand.
While 3 of the newly opened retail outlets were part of the plans developed long before the pandemic, the remaining two locations were decided after recent negotiations.
“This is the time to introduce a market with locations,” Lee said.
The growing informal sportswear market is the explanation for why Skechers sticks to her expansion plans.
“We are proud to say that we are one of the market leaders. We are fortunate to have products (which are) capable of satisfying the desires of the market,” he said.
Lee revealed accurate figures, but said Skechers had achieved a double sales expansion in Singapore on an annual basis for June, July and August, compared to the double-digit sales expansion seen earlier in the year.
The company remains “optimistic” for the coming months and points to a one-digit decrease in annual sales this year starting in 2019.
“The initial projection we were doing in May was a double-digit relief in sales,” Lee said.
“We remain optimistic, but of course we have to monitor and react to market sentiment. If we see that consumers spend less, we will adjust our promotions in the store. “
He also opted for the launch of new products, such as an upcoming collaboration with the popular Japanese character Hello Kitty, to attract those who need “elegant items. “
When asked if expansion might be difficult given the economic downturn, Lee noted that some consumers prefer to shop at downtown malls near their homes.
“Especially in this pandemic, we can see that sales in the suburbs are increasing, compared to sales in the Orchard area,” he says.
That’s why one of Skechers’ five new outlets is at Tiong Bahru Plaza, while the others are in Great World City, Novena Square, Suntec City and Marine Square.
“Right now we’re around 30 stores, which I think is the best compatibility with the market,” Lee said.
LABOR NEEDS
Lately, Skechers has approximately 290 workers in Singapore, and the venue also serves as its headquarters in Southeast Asia.
His new recruits, all local, held 30 retail positions and 10 on the logistics team. Hiring venues, especially those with retail experience, has been less difficult in those days, Lee said.
“Many brands are coming out of Array . . . so we have to call other competent people and offer them another position. “
With the recent increase in eligible salaries for Pass (EP) candidates, the company needs to employ more local workers for top-paid store manager positions in the future.
Skechers currently has Pass task holders in some of the executive roles in its retail stores, such as internal checkpoints, and also hires paint permit holders as retail assistants.
However, the local retail sector continues to face hiring challenges. Even among recent new hires, about a fifth replaced their minds in a time after joining Skechers, as they could not get used to the demands of running in a retail store. The company has been able to temporarily locate replacements due to the increased number of task finders now, Lee said.
Ms. Lee also said the company is affected by recent adjustments to foreign employee policies, but is involved in the long run.
“It will be a fear if the (wage) criteria for the other passes continue to increase,” he said.
trade
Meanwhile, Skechers is also adding e-commerce features to its local website as a component of meeting the desires of consumers who prefer the convenience of online shopping.
Work on its own e-commerce has been underway since last year, however, the pandemic and its disruptions have led the company to speed up the process, Lee said.
When asked if the company implied that it might be a little behind in the e-commerce game, Lee said he didn’t believe it because Skechers lately offers online services through online markets like Lazada and Shopee.
“I think consumers appreciate the social and sensory facets of offline food shopping in our physical stores. They would prefer to receive a personal recommendation from our associates.
“But at the same time, consumers can also shop online at their convenience, then . . . we see e-commerce as a complement to our physical stores,” he said.
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