DFP predicts ‘modest profit’ at Luxe in year one

By Luke Barras-hill |

Luxenight18

A ribbon cutting to mark the official opening of Luxe Duty Free will take place next month.

Duty Free Philippines Corporation (DFPC) says growth at the new Luxe Duty Free store is likely to be moderate in the first year of operations as it cements its visibility in downtown Manila.

As reported, DFPC soft opened the new 3,000sq m luxury shopping store at the SM Mall of Asia entertainment and leisure complex in Pasay City on Thursday.

“Luxe Duty Free expects to earn a modest profit in its first year based on projected sales,” DFP Chief Operating Officer Vicente Angala told TRBusiness.

“Our projections are based on initial growth which will be moderate as we establish awareness in the market.”

Chimimage

Chim Esteban, Chairman and CEO, Regent Asia Group.

‘QUANTUM LEAP’ RETAILING

A grand opening due next month is expected to showcase the full spread of stores at Luxe.

“Our primary strategy is to develop Luxe Duty Free as the most convenient and cost-effective luxury store available for the thousands of visitors who flock to the area each year,” continued Angala.

“Once underway we will expand our scope and take advantage of high-margin new sales and leverage our existing labour force to sell and service those products. As years go by, we intend to create the area’s premier destination for luxury brands.”

Regent Asia, which acts as the supply and management concessionaire for luxury and fashion goods at Luxe, has already open its first corners for Tom Ford, Sulwhasoo and Bobby Brown, with YSL to follow shortly.

Jose Maria ‘Chim’ Esteban III, Chairman and CEO of Regent Asia Group, praised the partnership with DFPC as a quantum leap in the quality of the stores and confirms that the early footfall signs, particularly from PRC visitors attracted to the Mall of Asia, has been encouraging.

“The word is relieved… now the work truly begins,” responded Esteban when asked for his reaction on the store’s much-anticipated opening.

InteriorLuxe

Luxe Duty Free’s footprint spans 2,000sq m on the ground floor offering fashion and luxury goods, liquor, tobacco and confectionery and a 1,000sq m mezzanine featuring a wide array of international P&C brands.

The multi-level Luxe Duty Free store will include between 30 to 35 boutiques for fashion and P&C, with 90% of the space dedicated towards these categories.

“We will substantially complete by February – about four fashion boutiques are in negotiation, beauty is all allocated,” commented Esteban.

“The tourism surge is here and the rehabilitation of Boracay [a small island in the Philippines situated approximately 280 miles south of Manila] will also provide a huge boost. There has been a surge of PRC nationals coming to work and invest in the country.”

Speaking to TRBusiness earlier this year, Esteban was aiming at $30m in P&C and fashion goods sales at Luxe in year one – a target he confirms still stands.

More images to follow…

Additional reporting by Andrew Pentol

To see the full interview in the February print issue of TRBusiness, click here.

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