Daily Archives: November 6, 2017

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Starbucks to sell assets of the Tazo brand to Unilever for $384 million

Starbucks to sharpen its focus on its up-leveled tea strategy with Teavana, furthering its growth and innovation in the super premium tea category

Seattle, 2017-Nov-06 — /EPR Retail News/ — Starbucks (NASDAQ: SBUX) today announced entry into a definitive agreement for Unilever to acquire the assets of the Tazo brand including its signature recipes, intellectual property and inventory for $384 million. In turn, Starbucks will drive a single tea brand strategy and focus with its super premium tea brand, Teavana.

Founded in 1994, and purchased by Starbucks in 1999 for $8.1 million, Tazo is an iconic tea brand sold primarily in grocery, mass and convenience channels, offered in formats including packaged teas, K-Cup® pods, and bottled ready-to-drink teas.

Starbucks will continue to invest in the growth, innovation and development of the Teavana brand of teas in its stores and in channels outside its stores. The tea category in Starbucks stores continues to grow double-digits globally, with Starbucks well on its way to building the Teavana business to over $3B over the next five years. In the past 12 months alone, Starbucks has sold more than $1.6B of Teavana beverages in Starbucks stores, launched ready-to-drink premium Teavana® Craft Iced Teas through its partnership with Anheuser-Busch InBev and plans to enter the packaged tea category in 2018.

“Over the past five years, we have established Teavana as our primary global brand focused on the premium tea segment. With our growth strategy for premium tea exclusively focused on Teavana, we are pleased to transition our Tazo business to Unilever,” said Kevin Johnson, president and chief executive officer, Starbucks. “We continue to see significant growth in our tea business through our Teavana brand, and this transition supports our strategy to elevate the premium tea experience for our customers.”

The transaction is expected to close during the fourth calendar quarter of 2017, with complete transition between the two companies by the end of calendar year 2018, subject to regulatory approval.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 25,000 stores around the globe, Starbucks is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit our stores or online at news.starbucks.com and Starbucks.com.

For more information on this press release, contact us

SOURCE: Starbucks Corporation

MEDIA CONTACT

Phone: 206 318 7100
Email: press@starbucks.com

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Asda unveils its Christmas Imaginarium

Asda unveils its Christmas Imaginarium

Leeds, UK, 2017-Nov-06 — /EPR Retail News/ — ‘Tis the season for festive adverts and this Sunday evening (5th November), Asda is set to unveil its offer for 2017 with a journey into the magical world of Asda’s very own Christmas workshop – the Imaginarium.

The 60 second ad will launch in the first ad break of X Factor on ITV on Sunday night and according to Asda’s Chief Customer Officer, Andy Murray, the idea came from seeing the reaction of Asda customers when they took part in tasting sessions of Asda’s Christmas range.

Murray explains: “Earlier in the year we held sessions with our customers to get feedback on our Christmas range. As we talked to them about Christmas we could see how much joy and happiness planning their Christmas brought them – we knew we wanted to reflect that in our ad. When we saw their reactions to our food – the way it surprised them and made them smile – as well as the incredible pride and attention to detail our product developers had put into creating it, the inspiration for the Imaginarium was born.”

The ad follows a young girl and her grandfather, who stumble across an intriguing and mysterious looking factory. As they sneak through the gates a magical world unfolds before their eyes and they discover Asda’s Christmas Imaginarium.

Eilidh Macaskill, Asda’s Vice President Creative and Media, explains: “By Combining CGI animation and some spectacular real life venues, the Imaginarium is depicted as a maze of rooms containing magical machines and enchanting experiments. From a reindeer powering an enormous food mixer making Christmas puddings, to bite-sized canapes and mince pies being assembled by miniature Imaginarium workers, and Christmas Smash Igloo cakes being tested by strapping weightlifters, the ad is a love letter to our customers and products.”

On their journey the pair discover the secrets behind Asda’s festive ranges. From a giant pop-up Christmas cookbook revealing two Asda chefs preparing a delicious Christmas dinner of roast turkey and Wagyu beef dripping roast potatoes, to an adult-only, futuristic gin room where truffles are being infused with gin by a giant ‘gin laser’ – the ad reinforces the imaginative ways Asda is working to provide the best Christmas ever for its customers.

Andy Murray, adds: “The care and attention that has gone into listening to our customers and creating our Christmas range this year is really impressiveand the Imaginarium is the perfect showcase for the excitement and ethos behind our products. Whatever your age or budget, Christmas is the time of year when you’re open to a little bit of magic and wondermentand I’m really excited that we’ve been able to do our bit to provide that for our customers this year.

In addition to the 60 second ad, Asda will also air four 30 second adverts during the festive period, revealing more mysteries of the Asda Imaginarium and showcasing more of Asda’s food, George clothing and homeware.

-ENDS-

For further details or high-res imagery, please email asda@mischiefpr.com or call 020 3128 6600.

Notes to editors

Founded in the 1960s in Yorkshire, Asda is one of Britain’s leading retailers. It has more than 160,000 dedicated Asda colleagues serving customers from 645 stores, including 3 Supercentres, 392 Superstores, 33 Asda Living stores, 155 Supermarkets, 31 depots and seven recycling centres across the UK. Its main office is in Leeds, Yorkshire and its George clothing division is in Lutterworth, Leicestershire. More than 18 million people shop at Asda stores every week and 98 per cent of UK homes are served by www.ASDA.com. Asda joined Walmart, the world’s number one retailer, in 1999.

SOURCE: ASDA

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Argos opens two new regional fulfilment centres in Birmingham and Reading

Will mean more products to more customers, faster than ever

  • Two Regional Fulfilment Centres opened in Birmingham and Reading
  • Added 200,000 sq ft of space improving Argos’s same / next day fulfilment capability on 35,000 products across the UK
  • Argos’s Fast Track service increasingly popular with customers: sales through Fast Track delivery up 31%; sales through Fast Track collection up 57%
  • 100 new permanent part and full-time jobs created with 400 new jobs over peak Christmas season

LONDON, UK, 2017-Nov-06 — /EPR Retail News/ —Argos has opened two new regional fulfilment centres (RFCs) in Birmingham and Reading to make it more convenient for customers to shop whenever and wherever they want and receive fast, efficient delivery on thousands of products to a location of their choice.

Each new RFC is c.100,000 sq. ft., increasing Argos’s total RFC space to 250,000 sq. ft. The RFCs process orders for same / next day delivery to customers’ homes and to stores for customer collection and they complement Argos’s seven Distribution Centres and extensive hub store network. The two new RFCs will significantly improve Argos’s fulfilment capabilities, with six million additional households now able to get same-day or next-day delivery or collection on an extended range of around 35,000 Argos products. Customers can choose between Fast Track home delivery or free Fast Track Click & Collect from their local store.

Argos’s Fast Track offer has become hugely popular with customers, with Fast Track delivery sales up 31% and Fast Track collection sales up 57%. And with more than 200 collection points inside Sainsbury’s supermarkets across the country, the RFCs put an extended range of Argos products virtually on the doorstep of millions of customers across the UK.

John Rogers, Argos CEO, said: “Our new Reading and Birmingham sites increase our Fast Track capacity across the UK significantly, which means we can get more products to more customers more quickly. Six million more households now have access to an increased range of 35,000 products, delivered to a location of their choice within 24 hours. This is great timing for customers with Black Friday and Christmas just around the corner. We expect the two new sites to process more than a million items in time for Christmas.”

He added: “We know that we see double-digit sales growth and increased footfall when sales from a Sainsbury’s in-store collection point are fulfilled through a Regional Fulfilment Centre, so we are confident that this will have a significant, positive commercial impact as well as delighting our customers.”

Argos is creating 100 full and part time jobs at each RFC, increasing to around 200 seasonal jobs in each location in the run up to the busy, peak trading seasons of Black Friday and Christmas.

SOURCE: Sainsbury’s

MEDIA CONTACT

press_office@sainsburys.co.uk or call 0207 695 7295.

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Argos launches its 2017 Christmas advertising campaign

Argos launches its 2017 Christmas advertising campaign

Action-ready Argos elves pull out all the stops to help Santa deliver gifts in record time

LONDON, UK, 2017-Nov-06 — /EPR Retail News/ — UK retailer Argos launches its 2017 Christmas advertising campaign, breaking tonight with high profile spots during ITV’s Emmerdale and Channel 4’s Gogglebox.

The 60 second TV commercial will transport millions of viewers to a magical Argos distribution centre where a troupe of Argos elves are helping Santa to deliver hundreds of thousands of gifts across the country at record speed on bright red super-sleighs.

The advert celebrates Argos’s commitment to super speedy delivery, with online orders delivered in as little as four hours¹ through its market-leading nationwide Fast Track same-day delivery service.

In a Christmas advertising first, three children will also have the exciting opportunity to feature in the TV advert themselves. From Tuesday 7 November, parents can visit Argos’s Facebook and Twitter channels to submit an image of their child using the hashtag #ReadyForTakeOff.  Three winners will be selected and will appear on national TV in the Argos advert for a whole day each on Friday 10, Saturday 11 and Sunday 12 November.

What’s more, everyone will get a chance to see their child’s face in a personalised social media version of the advert which they can share with loved ones.  Again, they simply need to upload their child’s photo on the Argos Facebook or Twitter sites and include the hashtag #ReadyForTakeOff.

The advert, created by CHI&Partners and directed by Gary Freedman, features a futuristic rocket-powered super-sleigh ready to take off on its mission across the country. The action shifts gear as one child’s long-awaited Christmas present, a Teksta voice-recognition robotic puppy, is found wandering the aisles by an elf.  The quick-thinking elf scans it in at the elf station to reveal its intended recipient on-screen, Tom, aged nine, whose family’s gifts are departing from gate nine.

This leads to a blockbuster-style chase across the distribution centre in which the elf pulls out all the stops to ensure the robotic puppy makes it to Tom in time for Christmas.

Gary Kibble, Marketing Director at Argos, said: “We love this edge-of-your-seat, high-energy Christmas campaign, which aims to surprise and delight across all channels – showcasing Argos’s Fast Track delivery commitment to getting customers what they want, how and when they want it, faster than anyone else.

“Over the Christmas period our teams will deliver 1.7 million items to customers’ homes and process 27 million in-store transactions, and the go-getting elf in the story reflects our hard-working and dedicated colleagues who often go the extra mile to make Christmas happen for our customers.

“We hope our super-swift, stop-at-nothing Argos Christmas elves help us once again to break the traditional retailer advertising mould by adding some excitement, energy and above all speed to the nation’s Christmases this year.”

Yan Elliott, Joint Executive Creative Director at CHI&Partners, said: “Argos is ‘Ready for Take-Off’ this Christmas, and we wanted a thrillingly fast-paced campaign that would really bring to life the lengths Argos will go to make Christmas special for families across the country, in the fastest way possible. We and AllTogetherNow are particularly proud to help make Argos the first UK retailer to personalise its Christmas advert across both TV and social media – and we can’t wait to see Argos fans everywhere become part of the action.”

The Argos ‘Ready For Take-Off’ advert forms part of a 360° campaign extravaganza spanning TV, digital, print and in-store and social media activity.  Media buying was through PHD, PR through Hope & Glory and point-of-sale and digital display through PSONA.

SOURCE: Sainsbury’s

MEDIA CONTACT

press_office@sainsburys.co.uk or call 0207 695 7295.

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Toys“R”Us® and Babies“R”Us® announce special military discount from November 4-11

Retailer Celebrates Military Families Nationwide with Special In-Store Savings, Partnership with Select Naval Exchange Stores and More

WAYNE, NJ, 2017-Nov-06 — /EPR Retail News/ — Each year the nation pauses to thank our country’s Military members for the numerous sacrifices they and their loved ones make throughout the year. While there are no words or dollars that can make up for the time away, Toys“R”Us® and Babies“R”Us®, is announcing today a special military discount – as a way to demonstrate our appreciation for our country’s service men and women. Customers with a valid Military identification card will receive 15% off in-store purchases* from Saturday, November 4 through Saturday, November 11.

All military personnel – active, retirees, reservists and dependents – can get a head start holiday shopping and enjoy this sale to check-off those must-have hot toys for the little ones in their life. Forgot to print the emailed coupon? No worries, stores will have coupons available at check-out for qualifying customers to redeem.

“As a former Marine, I understand and appreciate what it means to serve your country, as do the hundreds of veterans who work for our company,” said Mark Johnson, Executive Vice President, U.S. Marketplace Operations, Toys“R”Us and Babies“R”Us. “This is a great opportunity for us to do a little something extra to support and show our deep gratitude to the millions of military members (current and retired) and their children, particularly during a time of year where we are all so focused on families.”

Each year, Toys“R”Us hires thousands of U.S. veterans, while also supporting our team members who have been deployed overseas or domestically. To make it even easier for men and women in uniform to shop with us, Toys“R”Us recently launched a test with the Naval Exchange Stores (Nexcom) to stock shelves with toys from our exclusive science education product line, at locations in Virginia, Hawaii and California. Military stationed at Fort Bliss Military base in El Paso, Texas also have a Toys“R”Us express store located on the base.

For the past 14 years, Toys“R”Us has also been the number one corporate partner for the Marine Corps Foundation’s Toys for Tots program. Each holiday season, the Toys for Tots Program collects new, unwrapped toys and distributes them as Christmas gifts to children in need in local communities around the country.

On Saturday, November 11, all Toys“R”Us and Babies“R”Us stores (excluding express and outlet stores) will host a National Veteran’s Appreciation Day in-store event from 12:00 pm – 1:00 pm (local time). Geoffrey the Giraffe will be available to take photos with kids of all ages, there will be themed coloring sheets and more.

To learn more, visit the company’s blog, No Assembly Required and follow @ToysrusNews.

*Valid thru 11/11/17. Offer available in-store only. Offer includes active Military personnel, retirees, reservists and dependents with Military ID. Excludes baby food, diapers, formula, wipes, Gift Cards, Red Hot Deal & Hot Price items, Adidas Apparel, American Girl, Anki Cozmo, Aristotle, Baby Jogger, Baby K’Tan, Beaba, BOB, Boba, Boppy Bare Naked Pillow, Bugaboo, Build-A-Bear, Casio, Claire’s, Clek, Converse Clothing & Shoes, Cybex, Diono, Ergobaby, Halo Bassinest, LEGO construction sets, Lillebaby, Maclaren, Maxi-Cosi, Mifold, NECA (National Entertainment Collectibles Association), Nike Apparel, Nintendo Switch accessories, Nintendo Switch software, Owlet, Peg Pérego, Quinny, Sphero, Stokke, The Elf on the Shelf, Thule, Ugg Shoes, electronic learning hardware, laptops, netbooks, tablets, video games, video game hardware, video game pre-orders, Apple iPad & iPod, SquareTrade Protection Plans, phone orders, Special Orders, all fees, and shipping. One coupon per customer. Not valid with any other “R”Us total transaction offer or on prior purchases. Must be surrendered at time of purchase. Value is forfeited if item is returned. Coupon prorated among eligible items purchased. Only original coupons accepted. Void where prohibited. Valid USA only. Cash value 1/100 of 1¢.

About Toys“R”Us, Inc.
Toys“R”Us, Inc. is the world’s leading dedicated toy and baby products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 885 Toys“R”Us and Babies“R”Us stores in the United States, Puerto Rico and Guam, and in more than 810 international stores and over 255 licensed stores in 38 countries and jurisdictions. With its strong portfolio of e-commerce sites including Toysrus.com and Babiesrus.com, the company provides shoppers with a broad online selection of distinctive toy and baby products. Toys“R”Us, Inc. is headquartered in Wayne, NJ, and has nearly 65,000 employees worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Over the past three decades, the Company has given more than $100 million in product donations to children’s charities. Since 1992, the Toys“R”Us Children’s Fund, a public charity affiliated with Toys“R”Us, Inc., has also donated more than $130 million in grants. For more information, visit Toysrusinc.com or follow @ToysRUsNews on Twitter.

SOURCE: Toys“R”Us, Inc.

MEDIA CONTACT

1(973) 617-5900
press@toysrus.com

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KappAhl to hold Annual General Meeting on Tuesday 5 December 2017

Mölndal, Sweden, 2017-Nov-06 — /EPR Retail News/ — KappAhl AB’s (publ) Annual General Meeting will be held at 10.00 am on Tuesday 5 December 2017 at KappAhl’s head office, Idrottsvägen 14, Mölndal, Sweden. Notification to participate should be made, preferably by 12 o’clock noon, on Wednesday 29 November 2017. 

At the Annual General Meeting the following matters, inter alia, are proposed to be dealt with:

  • The Board of Directors’ proposal about the resolution regarding the adoption of the income statement and balance sheet, distribution of the company’s result (proposed dividend of 2.00 SEK per share) and a substantially unchanged remuneration policy for the company management.
  • The Nomination Committee’s proposals are that Anders Bülow is appointed chairman of the Annual General Meeting, that seven ordinary board members are appointed, that remuneration will be paid with SEK 400,000 to the chairman of the Board, and with SEK 200,000 to the other members of the Board and that remuneration for committee work is unchanged per board member, that Anders Bülow, Kicki Olivensjö, Pia Rudengren, Susanne Holmberg, Göran Bille and Cecilia Kocken are re-elected as ordinary members of the Board, that Thomas Gustafsson is elected as new ordinary member of the Board and that Anders Bülow through re-election is elected as chairman, and that PwC is re-elected as the accounting firm with Eva Carlsvi as the principally responsible auditor.
  • The Board of Directors’ proposal about a share split and reduction of the share capital through an automatic redemption procedure. Through the redemption procedure approximately SEK 500 million will be transferred to KappAhl’s shareholders, corresponding to SEK 6.50 per share.

The full version of the notice follows is enclosed.

For more information contact:
Charlotte Högberg, Head Corporate Communications. Tel. 46 (0)704-71 56 31, e-mail charlotte.hogberg@kappahl.com

KappAhl was founded in Gothenburg in 1953 and is a leading fashion chain in the Nordic region with 370 KappAhl and Newbie stores, including Shop Online, in Sweden, Norway, Finland, Poland and Great Britain. Our business idea is to offer value-for-money fashion of our own design to the many people. Sustainability-labeled fashion accounts for 53 per cent of the range. Sales for 2016/2017 totaled SEK 4.9 billion and the company has approx. 4,000 employees in nine countries. KappAhl is quoted on Nasdaq Stockholm. More information at www.kappahl.com

SOURCE: KappAhl

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Whole Foods Market offers new selection from Four & Twenty Blackbirds pie shop this holiday season

Whole Foods Market offers new selection from Four & Twenty Blackbirds pie shop this holiday season

AUSTIN, Texas, 2017-Nov-06 — /EPR Retail News/ — This holiday season, Whole Foods Market is offering a sweet new selection from cult-favorite Brooklyn-based pie shop, Four & Twenty Blackbirds.

The nine-inch Bittersweet Chocolate Pecan Pie is available nationwide and made from a special recipe combining pecans and 72 percent bittersweet chocolate in a rich custard.

Four & Twenty Blackbirds pie bakery was founded in 2009 by sisters and pie makers Melissa and Emily Elsen. The sisters started baking custom pies in their Brooklyn apartment before opening their flagship pie and coffee shop in 2010, which has now expanded to four New York locations.

From Nov. 1 through Dec. 31, the pie can be found in the bakery department at Whole Foods Market stores nationwide for $14.99.

SOURCE: Whole Foods Market

MEDIA CONTACT
SOmedia@wholefoods.com 

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Meijer to donate up to $400,000 to children’s gift-giving programs through its Buy a Toy, Share the Joy program

Meijer to donate up to $400,000 to children’s gift-giving programs through its Buy a Toy, Share the Joy program

 

GRAND RAPIDS, Mich., 2017-Nov-06 — /EPR Retail News/ — For the fourth consecutive year, Meijer is donating a portion of customer purchases made in the toy department, up to $400,000, to children’s gift-giving programs throughout the Midwest.

Any toy purchased at Meijer starting Oct. 29 throughout November will help the Grand Rapids, Mich.-based retailer share the joy this holiday season.

“Meijer wants to help make the holidays happier for hundreds of children, because every child deserves to experience the joy of unwrapping a toy,” said Dan Myers, Divisional Merchandise Manager of Toys for Meijer. “We know how much value our customers place on sharing their good fortune, and we believe the Buy a Toy, Share the Joy program will create lasting memories for children in need.”

Purchases made on hundreds of toys – including favorite national brands like Fisher-Price, Barbie, Lego and Nerf, and this season’s top toys – will count toward increasing the donation, up to $400,000, to children’s gift-giving programs within the retailer’s six-state footprint of Michigan, Ohio, Indiana, Illinois, Kentucky and Wisconsin. Meijer will select the programs to ensure that the donations remain in the communities Meijer serves.

Plus, in an effort to contribute even more, purchases of Barbie dolls, Hot Wheels, Thomas the Train, Play-Doh products, Pop! Vinyls and Melissa & Doug will be matched with specific donations from Funko, Hasbro, Mattel and Melissa & Doug. For more details, please visit www.meijer.com/joy.

“Meijer was built on a fundamental philosophy of supporting the communities where our customers and team members work and live, which is why we donate more than 6 percent of our net profit to charities each year,” said Cathy Cooper, Senior Director of Community Partnerships and Giving for Meijer. “Our ultimate goal this holiday season is to help our customers save money while still enjoying the tradition of gift giving whether those gifts are for loved ones or for children in their community who might otherwise go without.”

For more information about the Buy a Toy, Share the Joy program, please visit www.meijer.com/joy.

About Meijer:

Meijer is a Grand Rapids, Mich.-based retailer that operates 235 supercenters and grocery stores throughout Michigan, Ohio, Indiana, Illinois, Kentucky and Wisconsin. A privately-owned and family-operated company since 1934, Meijer pioneered the “one-stop shopping” concept and has evolved through the years to include expanded fresh produce and meat departments, as well as pharmacies, comprehensive apparel departments, pet departments, garden centers, toys and electronics. For additional information on Meijer, please visit www.meijer.com. Follow Meijer on Twitter @twitter.com/Meijer and @twitter.com/MeijerPR or become a fan at www.facebook.com/meijer.

Contact:

Christina Fecher
616-735-7968
christina.fecher@meijer.com 

Source: Meijer

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Morrisons helps growers sell superficially damaged apples with the launch of wonky British apples

Bradford, UK, 2017-Nov-06 — /EPR Retail News/ — Morrisons has launched a range of wonky British apples to help growers sell apples superficially damaged by unusual frosts which occurred earlier this year.

Millions of apples have been affected by adverse weather conditions which have left a brown ring known as “frost eye” around the some of the UK’s most popular fruit.

  • Unusually low temperatures, which dropped to -4C at the end of April in parts of Britain, caused some apples to feature slight blemishes to their skins only with no effect on eating quality.
  • The cold weather not only damages the fruit, but also reduces the quantity that a tree can produce. To help farmers, Morrisons will be selling blemished apples as part of its wonky packs meaning affected British growers will be now able use perfectly good and tasty apples that might have otherwise not have been eaten.
  • Morrisons wonky range, launched in 2015, helps the supermarket’s farmers sell perfectly good fruit and veg that are misshapen, blemished, very large or very small. The range now includes cabbage, cauliflower, courgettes, peppers, swede, apples, pears, sprouts, asparagus and leeks.
  • Morrisons apple buyer, Mark Booth, said: “We want to see good fruit eaten. Whenever bad weather damages fruit we’ll work with our growers to help them make the most of their crops. Our wonky apples might be a little ugly, but they will taste great.”
  • Morrisons now sells more than 500 tonnes of wonky veg to 500,000 customers every week.

For all media enquiries:
0845 611 5111

Source: Morrisons

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PHILIPPINES: SM Prime Holdings recorded a 16% net income growth in the Q3 2017 to PHP5.66 billion

Pasay City, Philippines, 2017-Nov-06 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company recorded a 16% net income growth in the third quarter of the year to PHP5.66 billion from PHP4.86 billion in the same period last year. This led to a 15% increase in net income in the first nine months of 2017 to PHP20.05 billion from PHP17.45 billion of last year. SM Prime’s consolidated revenue posted a 12% increase to PHP64.69 billion from PHP57.78 billion, while overall operating income grew by 16% to PHP30.14 billion from PHP25.87 billion in the same period under review. The growth was due to additional rental revenues from mall expansions, consistent improvement in same-mall-sales and higher contribution from residential sales.

“SM Prime’s performance in the third quarter is a testament to the buoyant overall economy that benefits the whole property market. The timely expansion of our malls and launches of our residential projects in the provinces are positively contributing to the strong performance of our Company. Given all these, we remain optimistic that we are on track to meet our growth target this year,” SM Prime President Jeffrey C. Lim said.

Mall Operations
In the first nine months of 2017, mall revenues posted a 10% growth to PHP38.58 billion from PHP35.07 billion last year. The malls operation contributed 60% of the consolidated revenues. Mall rentals went up by 10% to PHP32.83 billion from PHP29.74 billion, primarily due to the expansions and new malls that opened in 2016 and 2017; while the same-mall-sales sustained its 7% growth. Cinema and event ticket sales slightly dropped by 3% to PHP3.34 billion from PHP3.44 billion due to fewer blockbuster movies; whereas revenues from amusement and merchandise sales surged by 26% to PHP2.40 billion from PHP1.90 billion in the same period being reviewed. The consolidated mall operating income improved by 12% to PHP21.38 billion from PHP19.14 billion and operating margin was maintained at 55% in the same period.

Currently, SM Prime has 65 shopping malls in the Philippines and seven in China with a GFA of 8.0 million sqm and 1.3 million sqm, respectively. The company will open two new malls before the year-ends, namely SM Center Lemery in Batangas and SM Center Pulilan in Bulacan, which will bring our provincial malls to 44 from 38 in 2016.

Residential Development
Residential group’s revenues, which accounts for 32% of the consolidated revenues, expanded by 10% to PHP20.50 billion from PHP18.66 billion. The increase in sales take-up of ready-for-occupancy (RFO) units and construction accomplishments of SM Development Corporation (SMDC) drove the revenues higher. These revenues mostly came from Shore 2 Residences in Pasay City, Air Residences in Makati City, Fame Residences in Mandaluyong City, Trees Residences in Quezon City, Grass Residences in Quezon City and S Residences in Pasay City. Consolidated costs of real estate grew by 7% to PHP10.31 billion from PHP9.63 billion due to higher recognized real estate sales, while operating income grew by 20% to PHP6.17 billion from PHP5.13 billion.

Reservation sales increased by 18% to PHP42.08 billion from PHP35.52 billion, while unit sales increased by 3% bringing it to 12,963 units from 12,579 units in the same period under review.

Other Businesses
The rest of SM Prime’s businesses, which account for 8% of the consolidated revenues, registered revenue growth of 39% to PHP5.76 billion in the first nine months of the year from PHP4.13 billion last year. Operating income increased by 45% to PHP2.71 billion from PHP1.87 billion, while operating income margin improved by 47% from 45% in the same period being reviewed. The growth came from rental revenues of FiveE-comCenter and Conrad Manila, which are launched in November 2015 and June 2016, respectively.

To date, SM Prime has six office buildings with a combined GFA of 383,000 sqm. ThreeE-Com and FourE-Com Centers in the Mall of Asia Complex are expected to add an estimated GFA of 320,000 sqm in the Company’s office portfolio once completed in 2018 and 2020, respectively. SM Prime has six hotels with over 1,500 rooms, four convention centers and three trade halls in its portfolio.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

For further information, please contact: 

Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940

Source: SM Prime Holdings, Inc.